RWC Reports US$676.5M Revenue, US$67.2M Net Profit in H1 FY25
Reliance Worldwide Corporation Limited reported a robust 14.8% revenue increase to US$676.5 million and a 31.8% rise in net profit after tax to US$67.2 million for H1 FY25, driven by the full contribution from its Holman Industries acquisition.
- Revenue up 14.8% to US$676.5 million
- Net profit after tax rises 31.8% to US$67.2 million
- Full period contribution from Holman Industries acquisition
- Interim dividend declared at US2.5 cents per share
- On-market share buy-back planned for US$19.5 million
Strong Financial Performance Amid Strategic Acquisition
Reliance Worldwide Corporation Limited (ASX: RWC) has delivered a solid first half for the 2025 financial year, reporting a 14.8% increase in revenue to US$676.5 million and a 31.8% jump in net profit after tax (NPAT) to US$67.2 million. These results reflect the full period contribution from Holman Industries, acquired in March 2024, which has been seamlessly integrated into the group’s operations.
Excluding Holman and the impact of the prior year’s Supply Smart sales model closure, organic sales growth was a more modest 3.8%, highlighting the acquisition’s significant role in driving top-line expansion. Regional performance was mixed, with the Americas up 3.3%, APAC flat excluding Holman, and EMEA sales declining 4.6%, reflecting ongoing challenges in that region.
Operational Efficiencies and Cost Savings
EBITDA rose 26.8% to US$142.8 million, boosted by cost savings of US$10.2 million achieved through continuous improvement initiatives and restructuring efforts, particularly in EMEA. The company’s focus on operational discipline and synergy realization from Holman has underpinned margin expansion despite inflationary pressures and geopolitical uncertainties.
Adjusted net profit after tax, which excludes one-off costs such as integration expenses and distribution centre rationalisation, increased 36% to US$76 million, underscoring the underlying strength of the business.
Capital Management and Shareholder Returns
In line with its capital management policy introduced in early 2024, Reliance Worldwide declared an interim distribution of 5.0 US cents per share, split evenly between an unfranked cash dividend of 2.5 US cents and an on-market share buy-back of US$19.5 million. This distribution represents 58% of reported NPAT and 51.3% of adjusted NPAT for the half-year, reflecting a balanced approach to rewarding shareholders while maintaining financial flexibility.
The company completed a prior on-market buy-back of A$29.7 million during September and October 2024, further demonstrating its commitment to capital efficiency and shareholder value enhancement.
Outlook and Strategic Considerations
Reliance Worldwide’s management remains cautiously optimistic, noting that while the Holman acquisition has materially strengthened the group’s market position and financial profile, challenges persist in the EMEA region and from broader macroeconomic factors. The company continues to focus on integration, cost control, and innovation in its core plumbing solutions and appliance installation segments.
With a weighted average debt maturity of over six years and a net debt position carefully managed, the group is well-positioned to pursue further growth opportunities while delivering consistent returns to shareholders.
Bottom Line?
Reliance Worldwide’s H1 results underscore the transformative impact of Holman, but regional headwinds and integration execution will be key to sustaining momentum.
Questions in the middle?
- How will Reliance Worldwide address the ongoing sales decline in the EMEA region?
- What are the expected synergies and cost savings timeline from the Holman acquisition?
- Will the company maintain its balanced dividend and buy-back policy amid evolving market conditions?