Reliance Worldwide Corp. Ltd. (AU:RWC)
ASX:RWC
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Reliance Worldwide Corp.
(Sydney:RWC)
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Rating:60Neutral
Price Target:
AU$3.00
▲(3.45% Upside)
Action:ReiteratedDate:02/17/26
The score is primarily constrained by weakening growth and cash flow trends and by earnings-call-confirmed margin pressure from tariffs and commodities. This is partially offset by solid profitability, a stable balance sheet with moderate leverage, and a reasonable valuation with a modest dividend, while technical indicators point to limited momentum.
Positive Factors
Healthy profitability margins
Sustained gross margin near 39% and mid-single-digit net margins indicate durable product-level profitability and pricing power across fittings, valves and connection systems. This margin base supports cash generation and reinvestment even if volumes are volatile over the next several quarters.
Negative Factors
Sharp revenue decline
A near-50% reported decline in revenue growth signals material demand weakness and/ or one-off adjustments reducing scale. A smaller revenue base limits fixed-cost absorption, weakens operating leverage, and can delay normalization of margins and reinvestment plans for multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Healthy profitability margins
Sustained gross margin near 39% and mid-single-digit net margins indicate durable product-level profitability and pricing power across fittings, valves and connection systems. This margin base supports cash generation and reinvestment even if volumes are volatile over the next several quarters.
Read all positive factors
Reliance Worldwide Corp. (RWC) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$2.17B
Dividend Yield2%
Average Volume (3M)1.91M
Price to Earnings (P/E)11.1
Beta (1Y)1.36
Revenue Growth6.78%
EPS Growth16.25%
CountryAU
Employees2,900
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)0.10
Shares Outstanding757,241,460
10 Day Avg. Volume1,458,861
30 Day Avg. Volume1,912,045
Financial Highlights & Ratios
PEG Ratio1.17
Price to Book (P/B)1.51
Price to Sales (P/S)1.59
P/FCF Ratio10.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$4.04Price Target Upside39.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)0.16
Revenue Forecast (FY)AU$1.32B
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 plumbing and heating industries. It offers push-to-connect plu...
How the Company Makes Money
RWC makes money by selling plumbing and water control products to customers in building and renovation supply chains. Revenue is primarily generated from product sales (rather than recurring subscriptions), with earnings driven by: (1) sales volum...
Reliance Worldwide Corp. Earnings Call Summary
Earnings Call Date:Feb 16, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 24, 2026
Earnings Call Sentiment Neutral
The call described a challenging first half marked by meaningful margin compression driven by tariffs, lower volumes and commodity volatility, alongside weak U.S. and U.K. end markets. Offsetting strengths included strong cash generation, debt reduction, clear operational progress (Poland plant, SharkBite Max rollout, U.K. service improvements), completed pricing actions and ongoing tariff mitigation. Management reiterated guidance, expects sequential margin improvement in H2, but flagged a small residual FY '27 tariff impact and a multiyear program to reduce copper exposure. Overall, the discussion balances significant near-term financial headwinds with credible mitigation actions and operational achievements that support an improving trajectory.Positive Updates
Strong cash generation and balance sheet improvement
Cash generated from operations of $102.6M (down 19% on lower earnings) with operating cash flow conversion of 92.1% (above PCP and a 90% target). Net debt reduced by $21.2M in the half and $70.2M over the past 12 months; net leverage declined to 1.39x, preserving covenant headroom and flexibility.
Negative Updates
Significant margin compression
Adjusted EBITDA fell 22.5% to $111.4M and consolidated EBITDA margin compressed from 21.3% to 17.3% (a 400 basis point decline). Management attributes roughly 250bps to tariffs, ~100bps to lower volumes and operational deleverage, and the balance to EMEA investments and competitive pressure in Australia.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong cash generation and balance sheet improvement
Cash generated from operations of $102.6M (down 19% on lower earnings) with operating cash flow conversion of 92.1% (above PCP and a 90% target). Net debt reduced by $21.2M in the half and $70.2M over the past 12 months; net leverage declined to 1.39x, preserving covenant headroom and flexibility.
Read all positive updates
Company Guidance
The company reiterated FY‑26 guidance that reflects a net tariff hit of USD 25–30m (about two‑thirds absorbed in H1) with a residual FY‑27 EBITDA impact now expected at USD 5–7m; H1 reported results showed underlying net sales down 1.9% (reported down 4.6%), adjusted EBITDA down 22.5% to USD 111.4m (margin down from 21.3% to 17.3%, a 400bp compression), adjusted NPAT USD 52.2m and adjusted EPS USD 0.067, and a distribution of USD 0.04/share (USD 0.02 interim dividend + USD 0.02 buyback equivalent. Regionally, Americas underlying sales were down 3.4% with adjusted EBITDA USD 69.1m (down 25.4%) and margin 16.9% (‑410bp), APAC sales +0.6% in local currency with margin 8.6% (‑340bp), and EMEA underlying sales down 1.3% LC; cash from operations was USD 102.6m (‑19%) with 92.1% cash conversion, net debt down USD 21.2m in the half (USD 70.2m y/y) to net leverage 1.39x, inventory up USD 33m (net working capital 29% of sales v 27.4% PCP) and capex trending down (USD 12.6m lower, ~2% of sales). For H2 they expect consolidated external sales up mid‑single digits with Americas H2 sales mid‑ to high‑single digits, APAC H2 broadly flat to up low single digits and EMEA broadly flat; H2 EBITDA margins are expected to improve versus H1 (full‑year FY‑26 margin still below FY‑25). Management also highlighted H1 cost savings of USD 4.4m with USD 8–10m target for FY‑26 (roughly another USD 4–5m in H2), copper sensitivity of ~USD 0.9m EBITDA per USD 100/ton LME move (plus ~25% tariff overlay), an expected H2 copper-related cost step of ~USD 4–4.5m (average H2 copper ~USD 10,600/t v ~9,600/t last year), Poland plant commissioned in H1, a Mexico manufacturing start targeted for 2027, and a FY‑29 ambition to make copper non‑material to the P&L.Reliance Worldwide Corp. Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
72
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.28B | 1.31B | 1.25B | 1.24B | 1.17B | 1.01B |
| Gross Profit | 472.48M | 510.87M | 488.76M | 478.21M | 460.56M | 443.56M |
| EBITDA | 223.81M | 267.70M | 244.11M | 298.32M | 357.01M | 267.44M |
| Net Income | 100.99M | 125.00M | 112.07M | 139.65M | 137.44M | 141.44M |
Balance Sheet | ||||||
| Total Assets | 2.20B | 2.20B | 2.14B | 2.06B | 2.09B | 1.68B |
| Cash, Cash Equivalents and Short-Term Investments | 26.01M | 25.38M | 19.91M | 16.62M | 27.68M | 21.36M |
| Total Debt | 546.39M | 462.56M | 560.81M | 557.02M | 695.45M | 178.17M |
| Total Liabilities | 820.94M | 809.06M | 880.13M | 827.23M | 955.39M | 482.96M |
| Stockholders Equity | 1.38B | 1.39B | 1.26B | 1.23B | 1.13B | 1.20B |
Cash Flow | ||||||
| Free Cash Flow | 232.19M | 199.52M | 210.79M | 207.75M | 124.19M | 170.12M |
| Operating Cash Flow | 267.91M | 233.00M | 252.83M | 250.26M | 184.65M | 206.61M |
| Investing Cash Flow | -35.33M | -30.05M | -140.16M | -14.50M | -412.97M | -35.44M |
| Financing Cash Flow | -234.62M | -201.40M | -131.49M | -246.55M | 332.41M | -210.02M |
Reliance Worldwide Corp. Technical Analysis
Negative
2.90
Price Trends
3.36
Negative
3.64
Negative
3.88
Negative
Market Momentum
-0.09
Negative
35.97
Neutral
32.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RWC, the sentiment is Negative. The current price of 2.9 is below the 20-day moving average (MA) of 3.05, below the 50-day MA of 3.36, and below the 200-day MA of 3.88, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 35.97 is Neutral, neither overbought nor oversold. The STOCH value of 32.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$1.45B | 12.97 | 9.26% | 1.30% | 15.14% | -7.23% | |
65 Neutral | AU$2.81B | 10.17 | 20.27% | 2.65% | 7.20% | 32.60% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | AU$2.17B | 11.09 | 7.43% | 2.00% | 6.78% | 16.25% | |
56 Neutral | AU$17.46M | 7.14 | 4.83% | 4.32% | -15.54% | -26.61% | |
51 Neutral | AU$420.47M | -1.68 | -15.07% | 6.62% | -3.00% | ― | |
51 Neutral | AU$2.49B | 84.90 | 8.17% | 4.73% | 13.19% | 14.79% |
* Industrials Sector Average
AU:RWC
Reliance Worldwide Corp.
2.90
-1.06
-26.71%
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Reliance Worldwide Corp. Corporate Events
Reliance Worldwide Reports Ongoing Progress in Daily Share Buy-Back
Apr 1, 2026
Reliance Worldwide Corporation Limited has updated the market on the progress of its on-market share buy-back program for its ordinary fully paid shares. The company reported that as of the latest notification, a total of 11,022,093 shares had bee...
Reliance Worldwide Reports Daily Progress on On-Market Share Buy-Back
Apr 1, 2026
Reliance Worldwide Corporation has issued an updated notification to the ASX confirming the ongoing execution of its on-market share buy-back program for ordinary fully paid shares. The update, dated 1 April 2026, reports that a cumulative 10,273,...
Reliance Worldwide Cancels 9.2 Million Shares Following Buy‑Back
Mar 31, 2026
Reliance Worldwide Corporation has cancelled 9,191,531 ordinary fully paid shares following completion of an on‑market buy‑back executed on March 30, 2026. The reduction in issued capital signals an ongoing focus on capital management ...
Reliance Worldwide Continues On-Market Share Buy-Back Program
Mar 30, 2026
Reliance Worldwide Corporation has provided an updated notification of its on-market share buy-back program for its ordinary fully paid shares on the ASX. The company reported that it has repurchased a total of 9,748,551 shares prior to the latest...
Reliance Worldwide Updates Market on Ongoing On‑Market Share Buy‑Back
Mar 29, 2026
Reliance Worldwide Corporation Limited has been conducting an on‑market share buy‑back of its ordinary fully paid shares under a program first notified on 17 February 2026. The latest update, dated 30 March 2026, confirms that a total ...
Reliance Worldwide Continues Daily On‑Market Share Buy‑Back
Mar 25, 2026
Reliance Worldwide Corporation Limited has provided an updated notification to the ASX regarding its ongoing on‑market share buy‑back of ordinary fully paid shares. The company is executing the program through daily purchases, indicati...
Reliance Worldwide Issues Daily Update on Ongoing Share Buy‑Back
Mar 24, 2026
Reliance Worldwide Corporation Limited has provided an updated notification to the ASX regarding its ongoing on‑market share buy‑back program involving its ordinary fully paid shares. The company reported that, as of the latest reporti...
Reliance Worldwide Provides Daily Update on Ongoing On‑Market Share Buy‑Back
Mar 23, 2026
Reliance Worldwide Corporation Limited has continued its on‑market share buy‑back program, reporting a total of 7,093,687 ordinary fully paid shares repurchased before the latest trading day and a further 728,110 shares bought back on ...
Reliance Worldwide Updates Market on Progress of On-Market Share Buy-Back
Mar 22, 2026
Reliance Worldwide Corporation Limited has provided an updated notification to the ASX on its ongoing on-market share buy-back program, reporting that a total of 6,684,707 ordinary fully paid shares had been repurchased before the previous trading...
Reliance Worldwide Updates Daily On‑Market Share Buy‑Back Figures
Mar 18, 2026
Reliance Worldwide Corporation Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back program for its ordinary fully paid shares. The company reported that, as of the latest daily update dated 19 Mar...
Reliance Worldwide Lifts On-Market Buy-Back by A$120m
Mar 15, 2026
Reliance Worldwide Corporation Limited has updated its previously announced on-market share buy-back program for its ordinary fully paid shares. The company disclosed that it has increased the total buy-back amount by AUD 120 million, reflecting a...
Reliance Worldwide Announces Additional A$120 Million Share Buy-Back
Mar 15, 2026
Reliance Worldwide Corporation has announced a further on-market share buy-back of A$120 million, representing a return of excess capital under its established capital management framework. This new program is in addition to the previously announc...
Reliance Worldwide Continues On-Market Share Buy-Back Program
Mar 15, 2026
Reliance Worldwide Corporation Limited has provided an update on its ongoing on-market share buy-back program for its ordinary fully paid shares. The company reported that a total of 4,497,644 shares had been repurchased prior to the latest report...
Reliance Worldwide Continues Daily On‑Market Share Buy‑Back
Mar 12, 2026
Reliance Worldwide Corporation Limited has disclosed an update to its on‑market share buy‑back program involving its ordinary fully paid shares traded under the RWC ticker. The filing confirms the company is continuing to execute daily...
Reliance Worldwide Updates Market on Ongoing On‑Market Share Buy‑Back
Mar 11, 2026
Reliance Worldwide Corporation Limited has disclosed an on‑market share buy‑back of its ordinary fully paid shares, providing an updated daily notification to the Australian Securities Exchange. The company reported it had repurchased ...
Reliance Worldwide Updates Investors on Progress of On‑Market Share Buy-Back
Mar 10, 2026
Reliance Worldwide Corporation Limited has reported an update to its ongoing on‑market share buy-back program for its ordinary fully paid shares. The company disclosed that, as of the latest daily notification dated 11 March 2026, it had rep...
Reliance Worldwide Updates Market on Ongoing Share Buy-Back
Mar 9, 2026
Reliance Worldwide Corporation Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back program for ordinary fully paid shares. The latest daily update reports that a cumulative total of 1,485,033 shar...
Reliance Worldwide Sets Date for Half-Year 2026 Results and Investor Webcast
Jan 19, 2026
Reliance Worldwide Corporation has scheduled the release of its financial results for the half year ended 31 December 2025 on 17 February 2026, signaling an upcoming update on the company’s trading performance. Management will host a webcast...
Reliance Worldwide Confirms Final Shareholdings of Departing Director William Stuart Crosby
Jan 18, 2026
Reliance Worldwide Corporation Limited has announced that director William Stuart Crosby has ceased to be a director effective 19 January 2026. At the time of his cessation, Crosby held 150,506 ordinary shares in his own name and had an indirect i...
Reliance Worldwide Chair Stuart Crosby Retires, Interim Successor Appointed
Jan 18, 2026
Reliance Worldwide Corporation has announced the immediate retirement of its Chair, Stuart Crosby, from the Board due to health issues. Non-executive director Russell Chenu will serve as interim Chair while the Board conducts a search for an addit...
Reliance Worldwide Reports Lapse of 431 Performance Rights
Jan 7, 2026
Reliance Worldwide Corporation has notified the ASX of the cessation of 431 performance rights (security code RWCAD) after the conditions attached to those rights were not met or became incapable of being satisfied as at 31 December 2025. The laps...
Reliance Worldwide Confirms Lapse of 56,000 Performance Rights
Jan 5, 2026
Reliance Worldwide Corporation has notified the market that 56,000 performance rights (ASX code: RWCAD) have lapsed as of 31 December 2025 because the conditions attached to those rights were not satisfied or could no longer be met. The cessation ...
Reliance Worldwide Issues 82,030 Unquoted Performance Rights Under Incentive Scheme
Jan 5, 2026
Reliance Worldwide Corporation Limited has notified the market of the issue of 82,030 unquoted performance rights under its employee incentive scheme, with an effective issue date of 12 December 2025. The move underscores the company’s conti...
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.