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Expects impact of up to $35 million on FY26 earnings

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Shares fall most in nearly a month

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Citi analysts call outlook shift "conservative"

By Adwitiya Srivastava and Nikita Maria Jino

May 5 (Reuters) - Shares of Reliance Worldwide

Corporation ( RLLWF ) were on track for their weakest session in

about a month, after the Australian firm warned of pressure on

2025 Americas sales and cut its earnings outlook as it braces

for the impact of U.S. tariffs.

Shares in the plumbing solutions provider slumped as much as

4.1% on Monday, their largest intraday fall since April 9, while

the broader benchmark index traded 0.7% lower.

The company said it would now shift product sourcing from

China to alternative locations including Vietnam, Taiwan,

Thailand, and its own facilities in the U.S., U.K., and

Australia.

It also flagged a total cost impact of up to $35 million on

its operating earnings for the next fiscal year.

The firm's downbeat guidance joins a growing list of big-cap

companies which are either scrapping or cutting their 2025

guidance, offering fresh evidence that U.S. President Donald

Trump's unpredictable trade moves were making it increasingly

difficult for businesses to plan beyond the short term.

Reliance Worldwide ( RLLWF ) said nearly half of its cost of goods

sold in the Americas region comes from outside the U.S.

-including raw materials, components, and finished products

-making it potentially vulnerable to tariffs.

Analysts at Citi called Reliance Worldwide's ( RLLWF ) outlook shift

"conservative", with the impact on fiscal 2026 earnings to only

be sustained if tariffs on China remain in place for the

duration of this year.

The group currently generates around 70% of external revenue

from its Americas business, as per its 2024 annual report.