Reliance Worldwide (ASX:RWC) reported a challenging first half for the 2026 fiscal year, with statutory net profit after tax plummeting 34.9% to US$43.7 million.
The results, for the six months ended Dec. 31, 2025, reflect a period marred by aggressive US tariffs and cooling demand across key markets in the United States and the United Kingdom.
Net sales fell 4.6% to US$645.4 million, though the company noted that underlying sales—adjusting for market exits in Canada and Spain—showed a more modest decline of 1.9%.
The financial strain was evident in operating earnings, with EBITDA dropping 22.2% to US$111.1 million.
Management primarily attributed this margin compression to the ongoing impact of US tariffs, which are projected to have a full-year net impact of up to US$30 million.
RWC is aggressively shifting its sourcing away from China to lower-tariff regions and implementing price adjustments.
Despite the earnings dip, the company maintained a disciplined focus on capital management. RWC successfully reduced its net debt by US$21.2 million and achieved a robust operating cash flow conversion of 92.1%.
Investors will receive an interim dividend of 2 US cents per share, complemented by a US$15.3 million on-market share buyback.
The company expects the benefits of its cost-reduction measures and supply chain realignments to flow through more significantly in the second half of FY26.