Australia's Reliance Worldwide rises; Jefferies notes easing US tariff impact on firm

Reliance Worldwide

25/06/2025 04:56

** Shares of plumbing solutions provider Reliance Worldwide RWC.AX rise 1.2% to A$4.26

** Jefferies notes U.S. tariff impact on RWC in FY26 likely lower than earlier estimates as co moves to exit China manufacturing by FY27

** FY26 impact from tariffs expected to be around $20 mln, down by $10 mln, with most of this incurred in 1H - Jefferies

** In May, RWC estimated net cost impact of tariffs on FY26 EBITDA in the range of $25 mln to $35 mln

** However, Jefferies warns of a potential downturn in RWC's FY26 North American sales, citing worsening macro conditions

** Brokerage upbeat over RWC's medium-term valuation appeal

** Stock down 15.5% YTD

($1 = 1.5382 Australian dollars)

 (Reporting by Kumar Tanishk in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))