Reliance Worldwide Corp. (0EU) AI Stock Analysis

Reliance Worldwide Corp.

(Frankfurt:0EU)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Strong cash generation and deleveragingRobust 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 deteriorationThe 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.

Reliance Worldwide Corp. (0EU) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 2.38B
Dividend Yield: 1.51%
Average Volume (3M): ―
Price to Earnings (P/E): 254.7
Beta (1Y): 0.52
Revenue Growth: -7.43%
EPS Growth: -96.09%
Country: Germany
Employees: 2,526
Sector: Industrials
Sector Strength: 63
Industry: Construction Materials

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 brass f...

Reliance Worldwide Corp. Earnings Call Summary

Earnings Call Date:Aug 16, 2026(Q4-2026)|% Change Since:22.02%|Next Earnings Date:Feb 14, 2027

Earnings Call SentimentNeutral

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.

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. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

DE:0EU against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AU:REH	65Neutral	AUD 10.51B	36.34	8.32%	1.03%	4.46%	1.20%
AU:WAT	65Neutral	AUD 252.03M	16.39	10.34%	2.73%	1.42%	61.72%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AU:GWA	62Neutral	AUD 521.49M	11.33	16.46%	8.01%	0.92%	12.22%
AU:CYG	50Neutral	AUD 51.45M	-3.17	-14.13%	―	2.69%	51.68%
AU:FLC	39Underperform	AUD 63.01M	-6.39	89.35%	―	28.88%	69.06%

* Industrials Sector Average

Performance Comparison

DE:0EU and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:0EU	Reliance Worldwide Corp. Ltd.	2.66	0.46	20.91%
AU:CYG	Coventry Group Limited	0.37	-0.23	-38.33%
AU:FLC	Fluence Corporation Limited	0.06	-0.06	-52.17%
AU:REH	Reece Limited	18.11	6.89	61.45%
AU:WAT	Waterco Limited	7.20	2.27	45.96%
AU:GWA	GWA Group Limited	2.06	-0.17	-7.54%

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.

Reliance Worldwide Corp. AI Stock Analysis