Reliance Worldwide: Fixing the Pipes, Not the Pressure

研报英文原文证据摘录

Reliance Worldwide: Fixing the Pipes, Not the Pressure

Australia | Building Materials

Reliance Worldwide EquityJuneResearch23, 2026

TARGET | ESTIMATE CHANGEFixing the Pipes, Not the Pressure

Today's update from RWC drives MSD% EBIT upgrades from FY27 RATING BUY

onwards. However, we continue to point to a lack of underlying earnings PRICE AUD3.50^

growth, with capacity rationalisation in APAC also acknowledgement of PRICE TARGET | % TO PT AUD4.20 (AUD3.80) |

more challenging growth options in the region over the near term. Stock +20%

52W HIGH-LOW AUD4.62 - AUD2.86

continues to screen cheap with management controlling controllables at a

FLOAT (%) | ADV MM (USD) 95.7% | 10.77

low point in the cycle. Stock re-rating requires macro inflection in US R&R

MARKET CAP AUD2.7B | $1.9B

cycle.

TICKER RWC AU

^Prior trading day's closing price unless otherwise

Closure of Australian brass facility in Melbourne. Today, RWC announced its intention to noted.

close brass manufacturing in Melbourne as part of ongoing optimisation of manufacturing.

We expect RWC had previously retained capacity in Australia to serve any potential uptick in

demand, however ongoing weak macroeconomic conditions, and lack of new business options FY (Jun) CHANGE TO JEFe JEF vs CONS

combined with manufacturing expansion elsewhere have deemed this capacity unnecessary. 2026 2027 2026 2027

REV NM -3% +1% -3%

Earnings changes. Earnings changes are inline with company guide, with a +5% increase to EPS NA +5% NM +2%

FY27 and +4% increase to FY28 EBIT driven by structurally better margins in the US offsetting

the loss of APAC intercompany sales. Overall EBITDA benefit is US$9m per RWC commentary, 2026 ($) 1Half 2Half FY

given better US manufacturing economics and tariffs. EPS -- -- 0.16

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Macro remains tough.