7 stories mentioning ASX:RWCUpdated 36d ago
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Reliance Worldwide (ASX:RWC) has an average rating of overweight and mean price target of AU$4.27, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)
Jarden increased its forecasts for Reliance Worldwide's (ASX:RWC) fiscal 2027 and fiscal 2028 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), according to a Tuesday note by the investment firm.The investment firm now expects Reliance Worldwide's adjusted EBITDA to be AU$287.3 million for fiscal 2027, up AU$2.9 million from its prior projection, and AU$320.3 million for fiscal 2028, up AU$8.8 million from previous its estimate.The increase in the fiscal 2027 estimate reflects the announced closures and an expected second-half weighted EBITDA benefit impact, while the fiscal 2028 estimate reflects a AU$18.2 million increase across Americas, Jarden said.Reliance Worldwide decided to exit Australian brass manufacturing as part of a multi-year effort to rationalize its manufacturing footprint. The closures reflect volume declines at the Melbourne facilities, driven by migration of SharkBite Max production to the firm's Alabama facility and the 2025 transition to third-party Asian sourcing for Asia-Pacific.Jarden maintained an overweight rating on Reliance Worldwide and raised the price target to AU$4.10 from AU$4.Reliance Worldwide's shares jumped past 4% in recent Wednesday trade.
Reliance Worldwide's (ASX:RWC) plan to close its Melbourne brass operations, and an expected earnings uplift of $9 million have boosted core earnings estimates, Jefferies said in a note on Tuesday, adding that underlying earnings growth remains limited.The investment firm has raised its fiscal 2027 and fiscal 2028 EBIT estimates by 5% and 4%, respectively, as improved margins in the US offset the decline in APAC intercompany sales.The firm made no changes to its underlying operating forecasts, as it projects macroeconomic conditions to remain challenging across all three major operating regions."Stock continues to screen cheap with management controlling controllables at a low point in the cycle," analysts at the firm commented.Jefferies maintained a buy rating and increased price target to AU$4.20 from AU$3.80.
(Updates to add stock movement in the headline and sixth paragraph)Reliance Worldwide (ASX:RWC) said it plans to close its brass casting, forging, and machining operations in Moorabbin and Braeside in Melbourne, along with smaller sites, to optimize its global manufacturing operations, according to a Tuesday Australian bourse filing.The company said it expects an annual uplift to operating earnings of about $9 million by the end of fiscal year 2027, reflecting a net annual benefit to the Americas region of $18 million offset by an estimated adverse impact of $9 million on APAC region results.About 85 employees are expected to be affected by the closure of brass manufacturing operations in Australia, with Reliance starting consultation with impacted employees and anticipating the process to be completed in July, the filing added.Reliance expects to recognize a one-off net charge of $100 million to $110 million in fiscal year 2026, which will be excluded from operating earnings, with a net cash outcome expected to be around $5 million.From fiscal year 2027, production will shift away from APAC, with intercompany revenue of the region expected to fall from about $38 million in fiscal year 2025.Reliance Worldwide shares fell 5% in morning trade on Tuesday.
Reliance Worldwide (ASX:RWC) said it plans to close its brass casting, forging, and machining operations in Moorabbin and Braeside in Melbourne, along with smaller sites, to optimize its global manufacturing operations, according to a Tuesday Australian bourse filing.The company said it expects an annual uplift to operating earnings of about $9 million by the end of fiscal year 2027, reflecting a net annual benefit to the Americas region of $18 million offset by an estimated adverse impact of $9 million on APAC region results.About 85 employees are expected to be affected by the closure of brass manufacturing operations in Australia, with Reliance starting consultation with impacted employees and anticipating the process to be completed in July, the filing added.Reliance expects to recognize a one-off net charge of $100 million to $110 million in fiscal year 2026, which will be excluded from operating earnings, with a net cash outcome expected to be around $5 million.From fiscal year 2027, production will shift away from APAC, with intercompany revenue of the region expected to fall from about $38 million in fiscal year 2025.
Reliance Worldwide (ASX:RWC) reaffirmed its trading outlook for the year ended June 30, first disclosed last February, according to a Tuesday filing with the Australian bourse.Net cost impact of tariffs on fiscal year operating earnings is estimated to be in the range of $25 million to $30 million, while capital expenditure is expected to be between $25 million and $30 million, an earlier filing showed.The company anticipates that the war in Iran will not "materially" affect its operating earnings for the full fiscal year, although an extended conflict could influence the outlook for the fiscal year 2027, the filing said.Shares rose 5% in morning trade on Tuesday.
James Hardie Industries (ASX:JHX) is best positioned amongst Australian building products stocks to weather headwinds amid a challenging US housing outlook, Jefferies said in a Wednesday note.The equity research firm pointed to the company's internal initiatives and conservative set-up for fiscal 2027 driving earnings growth in the mid-single-digit percentage range.It added that Reliance Worldwide's (ASX:RWC) outlook remains challenged as a result of cost headwinds related to copper and tariffs, while Reece's (ASX:REH) investment in its US physical footprint entails a near-term cost for shareholders with only minor improvement anticipated in the short term.A Reece store analysis indicates a slower ramp-up of earnings than assumed by consensus forecasts, Jefferies said.The equity research firm maintained a buy recommendation on both James Hardie and Reliance Worldwide, and a hold rating on Reece. It cut the price target on James Hardie to AU$42 from AU$46, lowered the price target to AU$15.90 from AU$16.50 for Reece, and trimmed the price target on Reliance Worldwide to AU$3.80 from AU$4.05.James Hardie Industries' shares fell almost 5% in recent Thursday trade, Reliance Worldwide's shares shed 3%, and Reece's shares tumbled 6%.
