Shares in Reliance Worldwide surged on Tuesday after the plumbing components manufacturer posted a stronger-than-anticipated trading update for the first half of the year.
The London-listed company said revenue rose 7% year-on-year to £523 million in the six months to June 30, while adjusted profit before tax increased 11% to £121 million. The results exceeded market expectations, with analysts polled by Refinitiv forecasting revenue of £510 million and adjusted PBT of £115 million.
Reliance Worldwide attributed the growth to sustained demand across its core markets, including North America and Europe, as well as continued expansion in its residential and commercial plumbing segments. The company also highlighted improved operational efficiencies and cost discipline as key drivers of the outperformance.
The stock gained as much as 4.8% in early trading, reaching its highest level since March 2023. The rise extended gains from the previous session, when the shares closed 3.2% higher. Analysts at Jefferies upgraded the stock to "buy" from "hold," citing the company’s resilient end-market demand and margin recovery.
Reliance Worldwide, which supplies pipes, fittings and valves to plumbing professionals, has faced headwinds in recent quarters due to supply chain disruptions and inflationary pressures. The company’s latest update suggests it has navigated these challenges more effectively than peers, positioning it for a stronger second half of the year.
Investors will monitor the company’s full-year guidance, due to be released alongside its interim results in September, for further signs of its trajectory amid ongoing economic uncertainty.
