Major Shareholder Exit Could Be a Game Changer for Reliance Worldwide (ASX:RWC)

• Perpetual Limited and its related bodies corporate ceased to be substantial holders in Reliance Worldwide Corporation Limited as of October 30, 2025, representing a shift in the company's shareholder structure.
• This adjustment in ownership may alter market sentiment and influence how investors assess the company's future prospects and stability.
• We will examine how the exit of a major institutional investor could affect Reliance Worldwide’s investment outlook and narrative.

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Reliance Worldwide Investment Narrative Recap

To own shares in Reliance Worldwide, you need confidence in its ability to capitalise on long-term trends like water conservation, advanced plumbing technology, and ongoing infrastructure replacement. The recent exit by Perpetual Limited as a substantial holder does not materially impact the company's most important short-term catalyst, structural demand for plumbing products, or the biggest risk, which remains weak new home construction in major markets. Recently, Reliance Worldwide continued its share buyback program, authorising an additional US$19.4 million in repurchases. While not directly tied to changes in shareholder structure, buybacks can demonstrate management’s conviction and potentially support share prices as the company focuses on earnings resilience during uncertain market conditions. In contrast, investors should stay alert to how persistent weakness in construction activity could pressure revenue and margins if market demand fails to rebound ...

Read the full narrative on Reliance Worldwide (it's free!)

Reliance Worldwide's outlook anticipates $1.5 billion in revenue and $180.4 million in earnings by 2028. This is based on a projected annual revenue growth rate of 4.4% and reflects an increase in earnings of $55.4 million from the current $125.0 million.

Uncover how Reliance Worldwide's forecasts yield a A$4.84 fair value, a 22% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have posted fair value estimates for Reliance Worldwide ranging from A$4.84 to A$6.46, across two viewpoints. As investor holdings can shift quickly, you’ll want to see how changes in substantial ownership might influence future market participation and sentiment.

Explore 2 other fair value estimates on Reliance Worldwide - why the stock might be worth just A$4.84!

Build Your Own Reliance Worldwide Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Reliance Worldwide research is our analysis highlighting 5 key rewards that could impact your investment decision.
• Our free Reliance Worldwide research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Reliance Worldwide's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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