- Net Sales: $1.25 billion, a 0.2% increase year-over-year, meeting the estimate of $1.24 billion.
- Net Income: $110.1 million, a 21% decrease year-over-year.
- Adjusted EBITDA: $274.6 million, consistent with the previous year and above the estimate of $267.8 million.
- Adjusted EBIT: $214.5 million, a 3.4% decrease year-over-year.
- Adjusted Net Income: $146.9 million, a 5.7% decrease year-over-year, slightly below the estimate of $147.2 million.
- Dividend: Final dividend per share remains at 5 cents, unchanged from the previous year.
- Buyback: Plans for an On-Market Share Buyback of $19.6 million.
- Impact of Higher Interest Rates: Reduced consumer appetite for remodeling and lower levels of residential new construction activity.
- Operating Cash Flows: Strong operating cash flows generated due to focus on working capital management.
- FY25 Outlook: For the first 6 months, RWC expects group external sales to be broadly flat, within a range of up or down by low single-digit percentage points, excluding the impact of Holman and Supply Smart.
- Regional Trajectory: Similar trajectory expected in each region.
- New Initiatives: New product and revenue initiatives expected to help mitigate the impact of weaker end-markets.
- Cost Measures: Continued cost reduction and efficiency measures targeted to improve consolidated EBITDA margin in 1H, excluding Holman.
- Analyst Recommendations: 15 buys, 1 hold, 1 sell.
A look at Reliance Worldwide Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Reliance Worldwide Corp shows a promising long-term outlook. With a strong Growth score of 4 out of 5, the company is positioned well for expansion and potential increase in market share. Momentum, also rated at 4, indicates positive market trend and investor interest in the company’s future prospects. Despite an average Value score of 3, Reliance Worldwide Corp‘s focus on growth and momentum suggests a favorable trajectory in the coming years.
Although the Dividend and Resilience scores are slightly lower at 2, indicating room for improvement in these areas, the company’s core business of producing plumbing products remains globally relevant and in demand. With a wide array of plumbing fittings and accessories in its portfolio, Reliance Worldwide Corp is poised to capitalize on the increasing infrastructure development and demand for quality plumbing solutions worldwide.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
