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Reliance Worldwide Corp.
(Sydney:RWC)
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Rating:59Neutral
Price Target:
AU$4.50
▲(7.91% Upside)
Action:Reiterated
Date:08/19/26
The score is held back primarily by the sharp recent deterioration in revenue and profitability, partially offset by strong cash generation and a improving leverage profile. Technically, the trend is positive but appears overextended (high RSI), while valuation is neutral with a modest dividend. Earnings call guidance supports modest growth and cost-out execution, but flat margin expectations and ongoing tariff/commodity pressures cap upside.
Positive Factors
Strong cash generation and deleveraging
Robust operating cash flow and lower leverage strengthen financial resilience, support investment in manufacturing and reduce refinancing risk. Cash conversion above EBITDA indicates the business can fund operations even while reported earnings are under pressure.
Negative Factors
Sharp revenue and earnings deterioration
The latest decline in revenue and collapse in profitability weaken confidence in the near-term earnings base. If demand remains soft or mix deteriorates, lower operating leverage could limit the company’s ability to restore historical returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and deleveraging
Robust operating cash flow and lower leverage strengthen financial resilience, support investment in manufacturing and reduce refinancing risk. Cash conversion above EBITDA indicates the business can fund operations even while reported earnings are under pressure.
Read all positive factors
Reliance Worldwide Corp. (RWC) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$3.13B
Dividend Yield1.62%
Average Volume (3M)1.91M
Price to Earnings (P/E)40.4
Beta (1Y)1.24
Revenue Growth-5.16%
EPS Growth-93.82%
CountryAU
Employees2,526
SectorIndustrials
Sector Strength72
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.04
Shares Outstanding748,038,800
10 Day Avg. Volume1,458,861
30 Day Avg. Volume1,912,045
Financial Highlights & Ratios
PEG Ratio-4.91
Price to Book (P/B)2.31
Price to Sales (P/S)2.23
P/FCF Ratio14.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$4.73Price Target Upside13.37% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)0.19
Revenue Forecast (FY)AU$1.39B
Reliance Worldwide Corp. Business Overview & Revenue Model
Company Description
Reliance Worldwide Corporation Limited, together with its subsidiaries, engages in the design, manufacture, and supply of water flow, control, and monitoring products and solutions for the plumbing and heating industries. It offers a range of bras...
How the Company Makes Money
RWC makes money primarily by manufacturing and selling plumbing fittings and water control products to customers through a mix of distribution channels. Revenue is generated from product sales across multiple categories, including (1) push-to-conn...
Reliance Worldwide Corp. Earnings Call Summary
Earnings Call Date:Aug 17, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 15, 2027
Earnings Call Sentiment Neutral
The call presented a mixed picture: meaningful strategic and operational progress (strong cash generation, deleveraging, Poland ramp-up, Mexico build, stainless-steel transition, cost savings and adjusted sales growth) contrasted with material near-term earnings pressure from tariffs, copper and other inflation, APAC restructuring charges, margin compression and paused shareholder distributions. Management provided constructive FY'27 sales guidance but expects margins to remain broadly flat amid continuing macro and commodity headwinds. The Brookfield proposal adds a near-term strategic/financial development that offers certain value to shareholders but introduces transaction uncertainty.Positive Updates
Strategic acquisition proposal from Brookfield
RWC entered a process deed with Brookfield Capital Partners on an unsolicited non-binding proposal of AUD 4.75 per share (enterprise value ~AUD 4.1bn), representing an FY'26 EV/EBITDA multiple of ~12.9x (pre-AASB 16). The Board accepted exclusivity for 4 weeks to allow confirmatory due diligence and a potential SID with a 30-day go-shop.
Negative Updates
Adjusted EBITDA and margin contraction
Adjusted EBITDA was $242.1m, down 12.8% versus the prior comparative period; adjusted EBITDA margin fell to 18.5% from 21.1% (down ~260 basis points). Management expects FY'27 margin to be broadly consistent with FY'26, implying no near-term margin recovery.
Read all updates
Q4-2026 Updates
Positive
Negative
Strategic acquisition proposal from Brookfield
RWC entered a process deed with Brookfield Capital Partners on an unsolicited non-binding proposal of AUD 4.75 per share (enterprise value ~AUD 4.1bn), representing an FY'26 EV/EBITDA multiple of ~12.9x (pre-AASB 16). The Board accepted exclusivity for 4 weeks to allow confirmatory due diligence and a potential SID with a 30-day go-shop.
Read all positive updates
Company Guidance
RWC guided FY‑27 full‑year consolidated sales to be up by mid‑ to high single‑digit percentage points versus FY‑26, with adjusted EBITDA margin expected to be broadly consistent with FY‑26 (FY‑26 adjusted EBITDA $242.1m and margin 18.5%); regionally, Americas external sales are expected to rise mid‑ to high‑single digits with adjusted EBITDA margin broadly flat and a net U.S. tariff impact of $5–7m (versus a $25–30m tariff headwind in FY‑26 and a $4.2m net tariff refund benefit recorded this year), APAC external sales are expected up mid‑single digits but total APAC sales down ~AUD50m due to lower intercompany volumes after metals closures with margin broadly consistent, and EMEA external sales are expected up mid‑single digits with anticipated margin improvement; management is targeting $10–12m of additional cost savings in FY‑27.Reliance Worldwide Corp. Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
67
Positive
Cash Flow
71
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.33B | 1.31B | 1.25B | 1.24B | 1.17B |
| Gross Profit | 470.09M | 510.87M | 488.76M | 478.21M | 460.56M |
| EBITDA | 233.53M | 267.70M | 244.11M | 298.32M | 357.01M |
| Net Income | 6.41M | 125.00M | 112.07M | 139.65M | 137.44M |
Balance Sheet | |||||
| Total Assets | 2.07B | 2.20B | 2.14B | 2.06B | 2.09B |
| Cash, Cash Equivalents and Short-Term Investments | 28.55M | 25.38M | 19.91M | 16.62M | 27.68M |
| Total Debt | 378.10M | 462.56M | 560.81M | 557.02M | 695.45M |
| Total Liabilities | 785.50M | 809.06M | 880.13M | 827.23M | 955.39M |
| Stockholders Equity | 1.29B | 1.39B | 1.26B | 1.23B | 1.13B |
Cash Flow | |||||
| Free Cash Flow | 211.77M | 199.52M | 233.09M | 207.75M | 124.19M |
| Operating Cash Flow | 231.77M | 233.00M | 274.41M | 250.26M | 89.28M |
| Investing Cash Flow | -18.37M | -30.05M | -140.16M | -14.50M | -412.97M |
| Financing Cash Flow | -210.98M | -201.40M | -131.49M | -246.55M | 332.41M |
Reliance Worldwide Corp. Technical Analysis
Positive
4.17
Price Trends
3.80
Positive
3.50
Positive
3.56
Positive
Market Momentum
0.16
Negative
61.99
Neutral
62.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RWC, the sentiment is Positive. The current price of 4.17 is above the 20-day moving average (MA) of 3.92, above the 50-day MA of 3.80, and above the 200-day MA of 3.56, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 61.99 is Neutral, neither overbought nor oversold. The STOCH value of 62.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:RWC.
Reliance Worldwide Corp. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | AU$516.40M | 11.00 | 16.46% | 6.71% | 0.92% | 12.22% | |
65 Neutral | AU$10.29B | 32.72 | 8.32% | 1.09% | 4.46% | 1.20% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | AU$192.60M | 22.68 | 5.98% | 2.95% | -2.87% | -18.36% | |
59 Neutral | AU$3.13B | 40.40 | 4.29% | 1.87% | -5.16% | -93.82% | |
47 Neutral | AU$62.58M | -1.42 | -34.67% | ― | -0.67% | -6354.00% | |
42 Neutral | AU$69.89M | -4.99 | 115.72% | ― | 64.76% | 61.79% |
* Industrials Sector Average
AU:RWC
Reliance Worldwide Corp.
4.17
0.06
1.36%
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AU:GWA
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Reliance Worldwide Corp. Corporate Events
Reliance Worldwide Files 2026 Corporate Governance Statement with ASX
Aug 17, 2026
Reliance Worldwide Corporation Limited has lodged its annual Corporate Governance Statement for the year ended 30 June 2026 as part of its annual report, confirming it is accurate and current as of 18 August 2026. The statement outlines how the co...
Reliance Worldwide Issues FY26 Results Presentation With Cautionary Guidance
Aug 17, 2026
Reliance Worldwide Corporation Limited has released its FY26 results presentation, providing a high-level overview of its financial and operating performance as at 18 August 2026. The document highlights the use of non-IFRS measures such as EBITDA...
Reliance Worldwide Hit by Restructuring Charges as Margins Squeezed
Aug 17, 2026
Reliance Worldwide Corp. reported group net sales of $1,305.6 million for the year to 30 June 2026, down 0.7% as reported but up 3.0% on an adjusted basis after accounting for tariff-related revenue adjustments, incentive reclassifications, produc...
Reliance Worldwide posts lower FY26 profit, boosts cash flow amid Brookfield bid
Aug 17, 2026
Reliance Worldwide Corporation reported FY26 net sales of US$1,305.6 million, slightly down on the prior year, with adjusted net sales up modestly in constant currency amid US tariffs, higher input costs and softer demand in the US and UK. Reporte...
Reliance Worldwide Profit Slumps on Restructuring as Brookfield Tables Takeover Proposal
Aug 17, 2026
Reliance Worldwide Corporation reported flat revenue of US$1,305.6 million for the year to 30 June 2026, down 0.7% from the prior year, while net profit after tax plunged to US$6.3 million from US$125.0 million, mainly due to US$103.3 million in o...
Reliance Worldwide Enters Exclusivity Deal on A$4.75‑Per‑Share Brookfield Bid
Aug 17, 2026
Reliance Worldwide Corporation has entered a process deed with Brookfield Capital Partners following an unsolicited, non-binding proposal to acquire all RWC shares via a scheme of arrangement at A$4.75 per share. The indicative cash offer values t...
Reliance Worldwide Sets 2026 AGM Date and Director Nomination Deadline
Aug 9, 2026
Reliance Worldwide Corporation has scheduled its 2026 Annual General Meeting for 23 October, with full details to be provided in a forthcoming Notice of Meeting to shareholders. The company has also set 25 August as the deadline for shareholders t...
Reliance Worldwide Sets Date for 2026 Full-Year Results Webcast
Jul 14, 2026
Reliance Worldwide Corporation will publish its full-year results for the period ended 30 June 2026 on 18 August, setting the stage for investors to review its operational and financial performance. Management plans to host a webcast briefing for ...
Reliance Worldwide Corrects Error in Unquoted Securities Allocation
Jul 3, 2026
Reliance Worldwide Corporation Limited has filed an updated notice with the ASX correcting an error in the number of unquoted securities previously allocated. The amendment relates to an earlier announcement made on July 3, 2026, and clarifies the...
Reliance Worldwide Flags Lapse of 70,530 Performance Rights
Jul 3, 2026
Reliance Worldwide Corporation Limited has reported the cessation of 70,530 performance rights identified under ASX code RWCAD. These rights lapsed on June 30, 2026 after conditions attached to the securities were not satisfied or became incapable...
Reliance Worldwide Announces Routine Conversion of Unquoted Securities
Jul 3, 2026
Reliance Worldwide Corporation Limited operates in the plumbing and water management industry, supplying piping, fittings and related products to residential and commercial markets. The company is listed on the ASX under the ticker RWC and issues ...
Reliance Worldwide Issues New Unquoted Performance Rights Under Incentive Plan
Jul 3, 2026
Reliance Worldwide Corporation Limited has notified the market of the issue of 70,530 unquoted performance rights, designated as RWCAD securities, under its employee incentive scheme. The rights were issued on June 30, 2026, and are not intended t...
Allan Gray exits substantial holder position in Reliance Worldwide
Jun 30, 2026
Investment manager Allan Gray Australia Pty Ltd and its related entities have ceased to be substantial shareholders in Reliance Worldwide Corporation Limited as of 26 June 2026. The change reflects a reduction in their relevant interest and voting...
RWC to close Melbourne brass plants as it reshapes global manufacturing
Jun 22, 2026
Reliance Worldwide Corporation will shut its brass casting, forging and machining operations in Melbourne and several smaller Australian sites as it optimises its global manufacturing footprint. The move follows sustained declines in brass product...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.