Reliance Worldwide (ASX:RWC): FY26 Results and Proposed Acquisition

Aditi Sarkar

26 October 2026 07:38 PM AEDT

Reliance Worldwide (ASX:RWC): FY26 Results and Proposed Acquisition

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Highlights

Reliance Worldwide (ASX:RWC) reported FY26 net sales of USD 1.306bn, down 0.7% YoY.
Adjusted EBITDA declined 12.8% YoY to USD 242.1mn, with an 18.5% margin.
The proposed acquisition offers USD 3.38 in cash per ordinary share, subject to conditions.
The company reported that its alternative-proposal solicitation period concluded in October 2026.

Reliance Worldwide Corporation Limited manufactures and distributes plumbing and water-control products used in residential, commercial and industrial buildings across several international markets. The company’s FY26 financial results and its proposed acquisition by Brookfield are central developments as shareholders consider the next steps in the transaction. On 26 October 2026, Reliance Worldwide (ASX:RWC) shares were quoted at AUD 4.39, while the company’s latest disclosures outlined the end of the alternative-proposal solicitation period and the conditions remaining before a transaction could be implemented.

Company Business

Reliance Worldwide (ASX:RWC) designs, manufactures and supplies push-to-connect fittings, valves, pipes, connection systems and related water-flow products. Its brands include SharkBite, John Guest, JG Speedfit and Reliance Valves. Products are sold through distribution channels serving plumbing contractors, builders, merchants and retailers.

The group reports operating activity across the Americas, Asia-Pacific and Europe, the Middle East and Africa. Its results reflect construction and renovation demand, wholesaler purchasing trends, manufacturing utilisation and material costs. The geographic mix also creates exposure to foreign-exchange movements and trade policy, particularly tariffs affecting imported components.

Recent Development

In September 2026, Reliance Worldwide (ASX:RWC) announced a binding scheme implementation deed under which an entity acting for Brookfield would acquire all ordinary shares for USD 3.38 cash per share. The company stated that shareholders could elect to receive consideration in US dollars or Australian dollars at implementation, with the Australian-dollar amount affected by the prevailing exchange rate. The transaction remains subject to shareholder, court and regulatory approvals, an independent expert’s assessment and other customary conditions.

The agreement allowed the company to seek competing proposals during a defined “go-shop” period. In its October 2026 announcement, Reliance Worldwide reported the conclusion of that process. The proposed acquisition remains the principal corporate matter requiring further formal disclosures and shareholder consideration.

The company also announced changes to its Australian manufacturing footprint during FY26, including the planned closure of Melbourne metals manufacturing. Such restructuring decisions affect future manufacturing costs and implementation expenditure.

Financial Performance and Sector Context

For FY26, Reliance Worldwide (ASX:RWC) reported net sales of USD 1,305.6mn, a decline of 0.7% YoY. Adjusted EBITDA decreased 12.8% YoY to USD 242.1mn, corresponding to an adjusted margin of 18.5%. Adjusted net profit after tax was USD 125.1mn, down 15.3% YoY. The company reported statutory net profit after tax of USD 6.3mn, with its financial result affected by significant one-off charges.

At 30 June 2026, net debt was USD 243.4mn, compared with USD 331.6mn at the prior year end. The net debt-to-adjusted EBITDA ratio declined to 1.11 times from 1.30 times. These measures provide context for financing capacity while the acquisition proposal remains subject to approvals.

The company’s performance is linked to the pace of housing construction and renovation, plumbing-product demand, distribution inventories and input prices. Tariff costs and the transition of manufacturing arrangements can also affect margins. For FY27, Reliance Worldwide indicated expected sales growth in the mid-to-high single digits and an adjusted EBITDA margin broadly consistent with FY26, as outlined in its results disclosures.

Risks to Consider

The proposed scheme introduces execution uncertainty for Reliance Worldwide (ASX:RWC), particularly around regulatory clearances, shareholder approval, court proceedings, financing arrangements and timing. If the transaction does not proceed, the group would continue operating amid conditions affecting housing-related demand and manufacturing costs. Currency translation, tariffs, distribution patterns and restructuring expenditure are additional business considerations.

Non-IFRS measures such as adjusted EBITDA exclude specified items, making it important to distinguish them from statutory profit. The decline in FY26 reported earnings and lower adjusted profitability provide context for assessing the company’s financial performance.

What to Watch Next

Further announcements from Reliance Worldwide (ASX:RWC) are expected to address the independent expert’s report, scheme documentation, required approvals and the timetable for a shareholder vote. Updates may also clarify any changes in transaction terms or timing.

In its ongoing operations, FY27 sales trends, operating margins, manufacturing changes, working-capital management and regional housing-market demand remain relevant. The interplay between these operating indicators and the proposed ownership change will determine the focus of subsequent company disclosures.

Key Insights

Reliance Worldwide’s FY26 sales were broadly stable, although adjusted earnings and reported profit declined. Net debt decreased during the year, while the company entered into a binding agreement for a proposed cash acquisition. Completion depends on approvals and other transaction conditions. Future reporting will centre on the scheme process and the performance of the underlying plumbing-products business.

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