Reliance Worldwide Corporation (ASX:RWC): FY26 Results and Brookfield Scheme Developments

Aditi Sarkar

20 October 2026 09:34 PM AEDT

Reliance Worldwide Corporation (ASX:RWC): FY26 Results and Brookfield Scheme Developments

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Highlights

Reliance Worldwide Corporation (ASX:RWC) reported FY26 net sales of US$1,305.6 million.
Adjusted EBITDA declined 12.8% to US$242.1 million during FY26.
Net cash generated from operations was US$263.4 million for FY26.
The 19 October announcement confirmed no alternative proposal emerged during the Brookfield go-shop period.

Reliance Worldwide Corporation Limited manufactures and distributes plumbing and water-flow products for residential and commercial applications, with businesses across the Americas, Asia Pacific and Europe, the Middle East and Africa. Its 2026 updates include annual earnings, manufacturing restructuring and a proposed acquisition by Brookfield. On 20 October 2026, Reliance Worldwide Corporation (ASX:RWC) closed at AUD 4.52, declining 1.95% on the day. The closing movement is not attributed to any individual announcement.

Company Business

Reliance Worldwide Corporation (ASX:RWC) supplies plumbing connection, control and water-management products through manufacturing and distribution operations. Its product portfolio serves plumbing installation, repair and renovation demand. The business reports activities across three regional segments: the Americas, Asia Pacific and EMEA.

Regional conditions differ. United States residential renovation and new construction influence the Americas, while demand and operating costs in the United Kingdom and continental Europe affect EMEA. In Asia Pacific, manufacturing facilities and product distribution support domestic and other markets. These geographical exposures influence sales mix and production decisions.

Recent Development

In September 2026, Reliance Worldwide Corporation (ASX:RWC) entered into a binding scheme implementation deed under which Brookfield would acquire all ordinary shares for US$3.38 cash per share. The consideration was equivalent to approximately AUD 4.87 at the exchange rate referenced in the company's 19 October announcement. The Australian-dollar equivalent can change with exchange rates; the proposed US-dollar consideration is fixed under the disclosed terms.

The latest announcement, dated 19 October, reported that the permitted go-shop period ended without an alternative acquisition proposal. The company said the directors reaffirmed their conditional recommendation of the Brookfield scheme. Completion has not occurred: the proposal remains subject to shareholder, court and regulatory approvals, alongside the independent expert's conclusions.

Separately, in June the company announced plans to close brass casting, forging and machining operations at Melbourne sites as part of a manufacturing-footprint rationalisation. The company associated this decision with lower production volumes and expected future cost reductions.

Financial Performance and Sector Context

For the year ended 30 June 2026, Reliance Worldwide Corporation (ASX:RWC) reported net sales of US$1,305.6 million, down 0.7% from the previous corresponding period. Adjusted EBITDA fell 12.8% to US$242.1 million, and the adjusted EBITDA margin decreased to 18.5% from 21.1%. Adjusted net profit after tax was US$125.1 million, a decline of 15.3%.

Reported net profit after tax was US$6.3 million, reflecting US$103.3 million in post-tax one-off items principally associated with rationalisation of Australian metals manufacturing. Adjusted and statutory earnings therefore measure materially different results and should not be presented interchangeably.

Operating cash flow totalled US$263.4 million, with cash conversion of 108.8% of adjusted EBITDA. Net debt declined by US$88.2 million to US$243.4 million at 30 June 2026. The company did not declare a final FY26 distribution following the acquisition approach and suspended its on-market share buyback.

The company attributed earnings pressure to US tariffs, copper prices, cost inflation and lower sales volumes in the Americas and EMEA. It also reported US$10.0 million in cost savings. Sector conditions remain affected by construction demand, housing renovation activity, trade policy and raw-material expenditure.

Risks to Consider

Reliance Worldwide Corporation (ASX:RWC) faces tariff uncertainty, input-cost inflation, demand changes and operational risks tied to manufacturing transitions. Closure and relocation activities may require additional execution expenditure or affect supply arrangements.

The proposed scheme presents separate transaction uncertainty. Regulatory, court and shareholder decisions are outstanding, and the Australian-dollar value of US-dollar consideration varies with the relevant exchange rate. If the transaction fails, capital-management decisions and business plans may change.

What to Watch Next

The company indicated that a scheme booklet, including an independent expert's report, was expected in early November 2026. The scheme meeting was tentatively planned for early to mid-December, with implementation provisionally expected late that month. Those dates remain conditional and may change.

For Reliance Worldwide Corporation (ASX:RWC), subsequent operating disclosures may also clarify manufacturing savings, the Mexico facility's start-up and whether FY27 sales and margins follow the company's stated expectations. Management forecast mid-to-high single-digit percentage sales growth in FY27 and an EBITDA margin broadly consistent with FY26; these figures remain guidance rather than achieved results.

Key Insights

Reliance Worldwide Corporation's 2026 disclosures combine weaker earnings, cash generation, manufacturing rationalisation and a proposed Brookfield acquisition. FY26 sales were US$1,305.6 million, while statutory profit was reduced by substantial one-off charges. The proposed scheme and its required approvals are the immediate corporate milestones. Subsequent trading and financial releases can clarify cost initiatives and operating conditions without relying on daily share-price changes.

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