The Reliance Worldwide Corporation Ltd (ASX: RWC) share price is in focus after the company posted a 5.5% lift in sales to US$1,314.7 million and a 13.5% jump in reported net profit after tax to US$125 million for the 2025 financial year.
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What did Reliance Worldwide Corporation report?
- Net sales rose 5.5% to US$1,314.7 million
- Reported net profit after tax up 13.5% to US$125.0 million
- Adjusted EBITDA of US$277.7 million, up 1.1%
- Adjusted net profit after tax of US$147.7 million, up 0.5%
- Final distribution of 5.0 cents per share (unfranked final dividend and share buyback)
- Leverage reduced to 1.30 times, with strong operating cash flow
What else happened in FY25?
Reliance Worldwide's results included the benefit of a full year's contribution from Holman Industries, which the company acquired in March 2024. The year also saw steady margin performance despite market softness, with cost savings of $19.7 million from continuous improvement and restructuring activities.
Sales performance varied across regions: Asia Pacific (excluding Holman) grew external sales by 2.4%, while the Americas and EMEA saw declines. The company generated operating cash flow of $271.1 million, converting 97.6% of Adjusted EBITDA into cash.
What did Reliance Worldwide management say?
Commenting on the result, CEO Heath Sharp said:
In this context, we believe that our stable sales performance relative to the prior year is a creditable outcome. Coupled with further cost reduction measures, we have been able to maintain our underlying operating margin. This year included a full 12-month contribution from Holman following its acquisition in March 2024. We are very pleased with this acquisition and excited by the revenue growth opportunities presented by the combination of RWC and Holman in the APAC region. We have once again generated strong cash flows which we have used to further repay debt. Our leverage has reduced significantly to 1.30 times compared with 1.59 times at the end of the prior year.
What's next for Reliance Worldwide?
Looking ahead, RWC expects external sales for the first half of FY26 to be flat or down slightly compared to last year, with regional variations. The company anticipates new US tariffs will impact earnings and margins, estimating a $25–30 million operating earnings (EBITDA) hit, especially in the Americas.
Despite these headwinds, RWC is targeting operating cash flow conversion above 90% in FY26 as it continues to focus on margin protection, cost control, and integrating Holman's operations across the APAC region.
Reliance Worldwide share price snapshot
Over the past 12 months, Reliance Worldwide shares have declined 2%. That trails the S&P/ASX 200 Index (ASX: XJO) which has risen 12% over the same period.
