• Actively mitigating impact of US tariffs by switching product sourcing from China
• Targeting to reduce China-sourced COGS by 30% to US$80m in FY25
• Expects net tariff impact on FY26 EBITDA to be US$25-35m

Reliance Worldwide Corporation Limited (ASX: RWC) has provided an update on the impacts on its business from recently introduced US tariffs and updated its trading outlook for the year ending 30 June 2025 (FY25). RWC is working actively to mitigate the impact of US tariffs, including switching product sourcing from China to other countries, looking at further cost reduction measures, and implementing price increases in the US. As a result of these actions, RWC's China-sourced COGS is on target to reduce by approximately 30% from FY24 levels to US$80 million for FY25. RWC expects the net cost impact of tariffs on FY26 operating earnings (EBITDA) to be in the range of US$25 million to US$35 million. Looking to FY27, RWC aims to maintain gross margin dollars by fully offsetting tariffs through the combined mitigation efforts. For FY25, RWC now expects Americas external sales to be at the lower end of the guidance range of broadly flat, APAC external sales (excluding Holman) to be up by low-single digit percentage points, and EMEA external sales to be down by mid-single digit percentage points. As a result of lower sales expectations and immediate tariff cost impacts, RWC now expects consolidated Adjusted EBITDA margin (excluding Holman) to be slightly lower than for FY24.

RWC expects the net cost impact of tariffs on FY26 operating earnings (EBITDA) to be in the range of US$25 million to US$35 million. Looking to FY27, RWC aims to maintain gross margin dollars by fully offsetting tariffs through the combined mitigation efforts.

RWC now expects Americas FY25 external sales to be at the lower end of the guidance range of broadly flat, APAC FY25 external sales (excluding Holman) to be up by low-single digit percentage points, and EMEA FY25 external sales to be down by mid-single digit percentage points. As a result of lower sales expectations and immediate tariff cost impacts, RWC now expects consolidated Adjusted EBITDA margin (excluding Holman) to be slightly lower than for FY24.