Reliance Worldwide Corporation has reaffirmed its full year FY26 trading outlook, confirming that nine months of trading to 31 March 2026 have prompted no material revision to the company’s previous guidance issued in February. This confirmation comes against a backdrop of significant developments in US tariffs and geopolitical tensions in the Middle East, suggesting the company has successfully navigated these headwinds through operational strategies and price adjustments.
The US tariff environment has shifted materially since RWC released its half-year results. The Supreme Court struck down the International Economic Emergency Powers Act (IEEPA) based tariffs on 20 February 2026, subsequently replaced by a Section 122 tariff imposing a 10 percent levy on most imported goods through 24 July 2026. Additionally, from 6 April 2026, Section 232 metals tariffs on steel, aluminium and copper now apply to the full customs entry value on a tiered basis ranging from 50 percent to zero depending on metal content. RWC has lodged a claim for refunds of previously paid IEEPA tariffs, though the recoverable amounts remain to be verified.
Despite these tariff changes, RWC’s estimate of the tariff impact on operating earnings remains consistent with prior announcements. The company expects the full year net tariff cost for FY26 to be at the lower end of the previously indicated range of US$25 million to US$30 million. For FY27, the estimated net cost impact is unchanged at US$5 million to US$7 million, excluding any tariff refund. These figures suggest management has confidence in its ability to absorb tariff impacts through pricing adjustments and operational efficiency, though any future new tariffs or changes in existing rates could alter these expectations.
Regarding the war in the Middle East and closure of the Strait of Hormuz, RWC has confirmed it has no direct exposure to these developments. However, the conflict has driven increases in resin, logistics and energy costs for the company. Management has indicated these cost increases are being offset through price increases to customers. At present, the company does not expect the war will materially impact FY26 operating earnings, though prolongation of the conflict may affect the outlook for FY27.
Investors should monitor several key developments in coming months. The Section 122 tariff is set to expire on 24 July 2026, potentially creating volatility if not extended or replaced. The outcome of RWC’s IEEPA tariff refund claim could provide a material earnings tailwind if successful. Additionally, any further changes to US tariff policy or escalation in the Middle East could necessitate a revision to FY27 guidance. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Reliance Worldwide Corporation Limited (ASX: RWC)
Reliance Worldwide Corporation Limited designs and manufactures branded plumbing and heating products for global markets, specializing in water flow, control, and monitoring solutions. The company produces brass fittings, push-to-connect fitting systems, pipes, tubing, and plumbing valves sold under brands including JG Speedfit, HoldRite, and SharkBite. It operates manufacturing and distribution facilities across North America, Europe, and Asia-Pacific regions.
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