Highlights

  • RWC expects group sales to grow by mid- to high-single-digit percentages in FY27, supported by new products and pricing, with EBITDA Margin expected to stay broadly in line with FY26.
  • An unsolicited, non-binding proposal from Brookfield Capital Partners to acquire RWC at A$4.75 per share has led the company to suspend its Dividend and share buyback.
  • New Manufacturing facilities in Mexico and Poland are expected to add flexibility and lower-cost production, with the Polish Facility expected to support FY27 Earnings growth.
  • Net Debt fell to US$243.4 million, with Operating Cash Flow conversion improving to 108.8% of adjusted EBITDA.

RWC (ASX:RWC) enters FY27 navigating two very different storylines: an unsolicited Acquisition proposal from Brookfield Capital Partners that has paused Shareholder returns, and an operating Business working through Tariff pressures while shifting manufacturing capacity to lower-cost regions.

The Brookfield Proposal Overshadows Near-Term Capital Returns

RWC did not declare a final FY26 dividend after receiving an unsolicited, non-binding indicative proposal from Brookfield Capital Partners LLC to acquire the company at A$4.75 per share, with the Offer Price to be reduced by any dividends paid after the proposal date. The company has also suspended its on-market share buyback as a result. If the proposed acquisition does not proceed, the Board has indicated it will consider resuming dividends and/or the buyback during calendar 2027 — meaning the near-term capital return outlook is effectively on hold pending the outcome of this process.

Manufacturing Shifts Aim to Offset Cost Pressures

Independent of the Brookfield situation, RWC’s operating outlook is shaped by its response to tariffs, elevated copper costs and cost inflation. A new Mexican facility is scheduled to commence operations by the end of calendar 2026, expected to provide additional manufacturing flexibility and a lower-cost production structure for the Americas business. In EMEA, a new assembly facility in Poland began operations in November 2025 and is expected to contribute to earnings growth in FY27 as trading conditions in Continental Europe outperform a subdued UK market.

APAC Restructuring Should Deliver Ongoing Savings

RWC’s restructuring of its APAC metals manufacturing operations drove significant one-off charges in FY26, including site closures, impairments and inventory write-offs. Despite the upfront cost, the company expects the restructuring to deliver a net reduction in group costs of approximately US$9 million annually from FY28 — a saving that should flow through to margins once realised.

FY27 Guidance Points to Modest Growth

RWC expects group sales to grow by mid- to high-single-digit percentages in FY27, supported by new product initiatives and price increases, with EBITDA margin expected to remain broadly consistent with FY26. Management does not expect a significant improvement in broader economic conditions across its major end markets, with geopolitical developments and US trade policy remaining ongoing considerations for input costs, interest rates and consumer demand.

What to Watch

The outcome of the Brookfield proposal is the dominant near-term catalyst for the stock. Beyond that, the ramp-up of the Mexican and Polish facilities, realisation of the US$9 million annual APAC cost savings from FY28, and the trajectory of tariff and copper cost pressures will shape the underlying operating outlook.

Conclusion

RWC’s outlook for FY27 is split between the outcome of Brookfield’s acquisition proposal — which has paused dividends and Buybacks — and an operating business gradually repositioning its manufacturing footprint to manage tariff and cost pressures. How the Brookfield process resolves will likely be the more immediate driver of sentiment, while the underlying business continues working toward modest sales growth and stable margins.