Reliance Worldwide FY26 profit drops alongside takeover offer

• Reliance Worldwide reported a net profit of US$6.3 million due to US tariffs and restructuring costs.
• Brookfield Capital Partners submitted a non-binding acquisition offer at $4.75 per share, suspending the final dividend.
• The company stated it expects to consider paying a 2027 dividend if the current transaction does not proceed.

Reliance Worldwide (ASX:RWC) reported a full-year net profit of US$6.3 million amid restructuring costs and an unsolicited takeover proposal.

The net profit was net of a US$103.3 million post-tax one-off item relating to manufacturing footprint rationalisation in Australia.

Adjusted net profit dropped 15.3% to US$125.1 million from the previous year due to US tariffs and weaker demand.

Net sales reached US$1.31 billion, down 0.7% from a year earlier. Adjusted EBITDA was US$242.1 million, 12.8% lower than the prior-year period.

The company withheld its final dividend following an unsolicited, non-binding acquisition offer from Brookfield Capital Partners at $4.75 per share.

The financial results were reduced by US$103.3 million in one-off charges for Australian manufacturing rationalisation.

With the company stating it will consider a 2027 dividend, following the announcement, the Reliance Worldwide share price was down at $3.61.

The results follow the previously announced exit from low-margin Canadian product lines and the sale of Spanish manufacturing operations.