Reliance Worldwide half-year earnings: profit falls, dividend steady

The Reliance Worldwide Corporation Ltd (ASX: RWC) share price is in focus today after reporting half-year revenue of US$645.4 million, down 4.6%, and a net profit after tax of US$43.7 million, a decrease of 34.9% from the prior corresponding period.

What did Reliance Worldwide report?

• Revenue from ordinary activities: US$645.4 million, down 4.6% on the prior period
• Reported net profit after tax (NPAT): US$43.7 million, down 34.9%
• Reported EBITDA: US$111.1 million, down 22.2%
• Interim unfranked dividend: US2.0 cents per share (paid as 2.8206 Australian cents per share)
• On-market share buy-back of approximately US$15.3 million announced
• Basic earnings per share: 5.7 US cents, down 33.7%

What else do investors need to know?

The half-year results were impacted by increased US tariffs and weaker demand in the US and UK. The company noted that net sales in the Americas dropped by 7.2%, while the Asia Pacific region saw a mild 0.7% decline. EMEA (Europe, Middle East and Africa) sales rose slightly by 2.4%.

Despite a challenging environment, RWC achieved cost savings of US$4.4 million through better sourcing, manufacturing efficiencies, and distribution improvements. The interim total shareholder distribution of US4.0 cents per share, split evenly between a cash dividend and a buy-back, is above the company’s usual payout ratio due to lower NPAT this period.

What’s next for Reliance Worldwide?

Management has reaffirmed its commitment to distributing 40–60% of annual NPAT via both dividends and buy-backs, highlighting confidence in the company’s long-term strategy. The board continues to see value in returning capital to shareholders, particularly through buy-backs in the current share price environment.

The business is focusing on cost controls, and improving operational and manufacturing efficiency. The company remains alert to global economic pressures, and is ready to adjust as trading conditions shift across its major regions.

Reliance Worldwide share price snapshot

Over the past 12 months, Reliance Worldwide shares have declined 28%, trailing the S&P/ASX 200 Index (ASX: XJO) which haas risen 5% over the same period.

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The post Reliance Worldwide half-year earnings: profit falls, dividend steady appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.