Reliance Worldwide faces headwinds following deal

• Reliance Worldwide Corporation announced that elevated global interest rates will prolong market headwinds into 2027.
• The company reaffirmed its ongoing $4.1 billion buyout agreement with Brookfield Partners.
• Management cited rising U.S. mortgage rates and trade policy uncertainty as drivers of ongoing market pressures.

Plumbing supplies company Reliance Worldwide (ASX:RWC) reported that elevated interest rates worldwide are causing continued market headwinds into the 2026–2027 financial period.

The warning follows a period where the benchmark 30-year fixed mortgage rate in the United States increased to approximately 7.4%.

"We expect greater headwinds and uncertainty to continue well into 2027," said Reliance Worldwide CEO Heath Sharp.

The business generates approximately 55% of its total sales in the United States, where its SharkBite fittings are sold.

Following the announcement, the Reliance Worldwide share price was down at $4.44.

The company recently agreed to a buyout offer from Brookfield Partners valued at $4.1 billion.

The transaction structure was adjusted to US$3.38 per share to account for currency fluctuations, equivalent to 44.81 per share.