The Reliance Worldwide Corporation Ltd (ASX: RWC) share price is in focus today after the company posted a reported net profit after tax of just US$6.3 million and adjusted NPAT of US$125.1 million for the financial year ended 30 June 2026.
The company also revealed that it has entered into a process deed with Brookfield Capital Partners LLC following an unsolicited, non-binding, indicative proposal for the acquisition of 100% of the ordinary shares in RWC by way of a scheme of arrangement for a cash offer price of A$4.75 per share.
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What did Reliance Worldwide Corporation report?
- Net sales of US$1,305.6 million, down 0.7% on the prior corresponding period
- Adjusted net sales up 1.5% on a constant currency basis
- Reported NPAT of US$6.3 million (includes US$103.3 million in one-off post-tax items)
- Adjusted NPAT of US$125.1 million, down 15.3% year over year
- Adjusted EBITDA of US$242.1 million, 12.8% lower than last year
- No final dividend declared due to the Brookfield takeover proposal
What else do investors need to know?
The drop in reported profit was mainly due to one-off restructuring charges following the rationalisation of the company's Australian metals manufacturing operations. The board held back on a final FY26 dividend and suspended the share buy-back after receiving an unsolicited takeover offer from Brookfield Capital Partners.
Despite earnings pressures from US tariffs, higher copper costs, and weaker markets in the US and UK, Reliance Worldwide cut net debt by US$88.2 million thanks to strong operating cash flow. If the Brookfield deal does not proceed, the board may consider paying a dividend or restarting the buy-back in 2027.
What did Reliance Worldwide Corporation management say?
Commenting on the results, Reliance Chief Executive Officer, Heath Sharp, said:
FY26 was a challenging year, with earnings impacted by US tariffs, elevated copper costs, cost inflation and softer market conditions in the Americas and EMEA. We responded with targeted price actions, cost reduction initiatives, further optimisation of our manufacturing footprint and product sourcing.
What's next for Reliance Worldwide Corporation?
Looking ahead, the company does not expect a significant improvement in its main markets during FY27. Global factors like geopolitical tensions and US trade policies could keep input costs and demand under pressure. Still, management is targeting mid to high-single digit sales growth for FY27, supported by new products and price increases. EBITDA margin is forecast to stay broadly in line with FY26.
Reliance Worldwide Corporation share price snapshot
The Reliance Worldwide share price is underperforming the S&P/ASX 200 Index (ASX: XJO) on a 12-month basis with a decline of over 20%.
