The half year results are coming in thick and fast this week. This includes a flurry of releases on Tuesday.
Two ASX industrials shares that have released results that haven't gone down well with investors are listed below. Here's what they reported:
Reliance Worldwide Corporation Ltd (ASX: RWC)
The Reliance share price was down as much as 8% to $4.93 at one stage this morning.
Investors have been selling the plumbing parts company's shares following the release of its half year results. RWC reported a 14.8% increase in net sales to US$676.5 million and a 12.3% lift in adjusted net profit after tax to US$76 million.
While this looks like a strong result on paper, it is worth noting that it includes a full period contribution from Holman, which was acquired in March 2024. On a normalised basis, sales were up a more modest 3.8% on the prior corresponding period.
Looking ahead, for FY 2025, the ASX industrials share expects group sales to be up by mid-single digit percentage points relative to FY 2024. And excluding the impact of Holman and Supply Smart, full year group sales are expected to be broadly flat.
Goldman Sachs was disappointed with management's guidance. It said:
RWC expect FY25 external sales to be up MSD%. This compares with GSe of +9% and VA Consensus of +10%. Excluding Holman and Supply Smart – full year group external sales are expected to be flat (+/- LSD%), which compares with GSe growth of 3%.
SRG Global Ltd (ASX: SRG)
The SRG Global share price was down as much as 8% to $1.31 this morning. Investors have been selling this ASX industrials share following the release of its record half year results.
This morning, the diversified infrastructure services company reported a 21% increase in revenue to $619.7 million and a 50% jump in net profit after tax to a record of $26.6 million. This allowed the company's board to boost its interim dividend by 25% to 2.5 cents per share.
Commenting on the strong first half performance, managing director David Macgeorge said:
SRG Global continues to make significant progress in the execution of our strategy. Our record 1H FY25 result is underpinned by strong business fundamentals, excellent cash generation and solid operational delivery for our blue-chip client base.
Looking ahead, management has upgraded its EBITDA guidance to a range of $125 million to $128 million.
However, this guidance still falls short of what some analysts were expecting from the ASX industrials share. For example, Bell Potter was looking for an upgrade to $128.5 million from SRG Global.
