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Reliance Worldwide Corp.
(Sydney:RWC)
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Rating:60Neutral
Price Target:
AU$4.00
▲(34.68% Upside)
Action:Reiterated
Date: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 profit margins
Sustained gross and net margins near 39% and 9.5% indicate enduring pricing power and operational efficiency in engineered plumbing products. Strong margin levels provide a durable buffer against cost shocks and support reinvestment, dividends and mitigation programs over the medium term.
Negative Factors
Significant margin compression
A 400bp margin hit reflects structural pressures from tariffs, weaker volumes and operational deleverage. If tariffs, competitive pricing or lower volumes persist, restored margins will depend on multi-period cost savings and sourcing changes, prolonging recovery timelines.
Read all positive and negative factors
Positive Factors
Negative Factors
Healthy profit margins
Sustained gross and net margins near 39% and 9.5% indicate enduring pricing power and operational efficiency in engineered plumbing products. Strong margin levels provide a durable buffer against cost shocks and support reinvestment, dividends and mitigation programs over the medium term.
Read all positive factors
Reliance Worldwide Corp. (RWC) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$2.71B
Dividend Yield2%
Average Volume (3M)1.91M
Price to Earnings (P/E)16.0
Beta (1Y)1.42
Revenue Growth-1.47%
EPS Growth-16.42%
CountryAU
Employees2,497
SectorIndustrials
Sector Strength72
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.16
Shares Outstanding748,038,800
10 Day Avg. Volume1,458,861
30 Day Avg. Volume1,912,045
Financial Highlights & Ratios
PEG Ratio1.79
Price to Book (P/B)2.29
Price to Sales (P/S)2.42
P/FCF Ratio15.96
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$4.01Price Target Upside35.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)0.2
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 installation and repair products (e.g., push-to-connect and other fittings, connectors, valves, and related water-control components). Revenue is generated from product sales to trade...
Reliance Worldwide Corp. Earnings Call Summary
Earnings Call Date:Feb 16, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 18, 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 | 1.60B | 1.31B | 1.25B | 1.24B | 1.17B | 1.34B |
| Gross Profit | 586.87M | 510.87M | 488.76M | 478.21M | 460.56M | 588.10M |
| EBITDA | 279.36M | 267.70M | 244.11M | 298.32M | 357.01M | 267.44M |
| Net Income | 122.85M | 125.00M | 112.07M | 139.65M | 137.44M | 187.89M |
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 | 305.62M |
| Total Liabilities | 820.94M | 809.06M | 880.13M | 827.23M | 955.39M | 642.61M |
| Stockholders Equity | 1.38B | 1.39B | 1.26B | 1.23B | 1.13B | 1.20B |
Cash Flow | ||||||
| Free Cash Flow | 272.06M | 199.52M | 233.09M | 207.75M | 124.19M | 170.12M |
| Operating Cash Flow | 314.06M | 233.00M | 274.41M | 250.26M | 89.28M | 206.61M |
| Investing Cash Flow | -41.22M | -30.05M | -140.16M | -14.50M | -412.97M | -35.44M |
| Financing Cash Flow | -277.25M | -201.40M | -131.49M | -246.55M | 332.41M | -210.02M |
Reliance Worldwide Corp. Technical Analysis
Neutral
2.97
Price Trends
3.42
Positive
3.27
Positive
3.60
Positive
Market Momentum
0.10
Positive
51.30
Neutral
26.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RWC, the sentiment is Neutral. The current price of 2.97 is below the 20-day moving average (MA) of 3.76, below the 50-day MA of 3.42, and below the 200-day MA of 3.60, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 51.30 is Neutral, neither overbought nor oversold. The STOCH value of 26.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | AU$617.93M | 13.25 | 15.52% | 6.20% | 1.27% | 26.06% | |
69 Neutral | AU$9.60B | 35.45 | 7.27% | 1.40% | 2.83% | -24.39% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | AU$2.71B | 16.03 | 9.90% | 2.00% | -1.47% | -16.42% | |
58 Neutral | AU$175.52M | 20.66 | 5.98% | 2.95% | -2.87% | -18.36% | |
45 Neutral | AU$44.50M | -1.05 | -34.67% | ― | -0.67% | -6354.00% | |
44 Neutral | AU$97.26M | -6.81 | 115.72% | ― | 64.76% | 61.79% |
* Industrials Sector Average
AU:RWC
Reliance Worldwide Corp.
3.67
-0.42
-10.16%
AU:CYG
Coventry Group Limited
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-0.40
-55.56%
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Fluence Corporation Limited
0.09
0.04
80.85%
AU:REH
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15.60
2.58
19.85%
AU:WAT
Waterco Limited
5.01
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-25.35%
AU:GWA
GWA Group Limited
2.33
0.02
0.73%
Reliance Worldwide Corp. Corporate Events
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...
Reliance Worldwide Reaffirms FY26 Outlook Despite U.S. Tariff Shifts and Middle East Risks
Apr 27, 2026
Reliance Worldwide Corporation reaffirmed its full-year FY26 trading outlook, maintaining previously issued guidance for regional and group performance, net tariff impact, cash flow conversion, capital expenditure, depreciation and amortisation, n...
Reliance Worldwide Updates Market on Progress of On‑Market Share Buy‑Back
Apr 19, 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 update, dated 20 April 2026, follows the company’s earlier ...
Reliance Worldwide Continues Active On‑Market Share Buy‑Back
Apr 16, 2026
Reliance Worldwide Corporation has provided an updated notification to the ASX confirming ongoing on-market buy-backs of its ordinary fully paid shares under code RWC. The update, dated 17 April 2026, reports that a total of 16,300,744 shares had ...
Reliance Worldwide Details Ongoing On-Market Share Buy-Back Activity
Apr 15, 2026
Reliance Worldwide Corporation Limited has disclosed an on-market share buy-back program involving its ordinary fully paid shares listed on the ASX under the ticker RWC. The company continues to provide daily updates, with the latest notification ...
Reliance Worldwide Continues On‑Market Share Buy‑Back
Apr 14, 2026
Reliance Worldwide Corporation has provided an update on its ongoing on‑market share buy‑back program for its ordinary fully paid shares. The company reported that it repurchased 448,671 shares on the previous trading day, bringing the...
Reliance Worldwide Continues On‑Market Share Buy‑Back
Apr 13, 2026
Reliance Worldwide Corporation Limited has updated the market on its ongoing on‑market share buy‑back program for its ordinary fully paid shares on the ASX. The company reported that, as of 14 April 2026, it had repurchased a cumulativ...
Reliance Worldwide Updates Market on Daily Progress of Share Buy-Back
Apr 9, 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 securities. The company reports that, as of the latest daily update dated 10 A...
Perpetual Exits Substantial Holder Position in Reliance Worldwide
Apr 9, 2026
Perpetual Limited and its related entities have notified Reliance Worldwide Corporation that they have ceased to be substantial holders in the company as of 7 April 2026. The change, detailed in a regulatory disclosure, indicates Perpetual’s...
Reliance Worldwide Continues Daily On‑Market Share Buy‑Back
Apr 8, 2026
Reliance Worldwide Corporation has issued an update on its ongoing on‑market share buy‑back program, confirming that it repurchased 837,708 ordinary fully paid shares on the previous trading day. This brings the total number of shares ...
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.