The Reliance Worldwide Corporation (ASX: RWC) share price is in focus after the company reaffirmed its full year FY26 trading outlook and provided updates on US tariffs and Middle East impacts.
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What did Reliance Worldwide report?
- FY26 full-year guidance has been reaffirmed after nine months of trading to 31 March 2026
- The company expects the FY26 net cost impact of US tariffs to be at the lower end of the previously indicated US$25 million–US$30 million range
- FY27 net cost impact of US tariffs is forecast to remain at US$5 million to US$7 million
- No material change in assumptions regarding regional and group outlook, net tariff impact, cash flow conversion, or cost savings
What else do investors need to know?
Two notable US tariff changes were flagged: the IEEPA-based tariffs were struck down by the US Supreme Court, replaced by a Section 122 tariff set to expire in July 2026. Reliance Worldwide lodged a claim for a refund of previously paid IEEPA tariffs, but the amounts are yet to be verified.
There's also an update to Section 232 tariffs on metals like steel, aluminium, and copper. Despite these changes, Reliance Worldwide does not anticipate a major shift in their operating earnings or cash flows for FY26 based on current estimates.
What's next for Reliance Worldwide?
Reliance Worldwide expects its FY26 earnings to remain on track, despite higher costs driven by oil price impacts on resin, logistics, and energy. The company is offsetting increased input costs through price rises, and does not foresee material impacts from the war in Iran for FY26.
However, Reliance Worldwide cautions that a sustained conflict in the Middle East may influence operating conditions heading into FY27. The company remains focused on managing external pressures and maintaining its guidance.
Reliance Worldwide share price snapshot
Over the past 12 months, Reliance Worldwide shares have declined 26%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.
