The Reece Ltd (ASX: REH) share price is in focus after full-year FY26 sales revenue rose 4.5% to $9.38 billion, but net profit slipped 2.8% to $308 million.
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What did Reece Ltd report?
- Sales revenue up 4.5% to $9,378 million
- EBITDA flat at $901 million
- EBIT down 2.6% to $534 million
- Net profit after tax (NPAT) down 2.8% to $308 million
- Final dividend of 13.40 cents per share, fully franked
- Return on capital up five basis points to 11.9%
What else do investors need to know?
Reece’s Australian and New Zealand business delivered renewed momentum, with sales up 8.3% to $4.2 billion thanks to recovering volumes and investment in team capability. This was partly offset by softer conditions in the US, where ongoing weakness in residential new construction pressured growth despite a network expansion to 25 new branches.
Investors should note net debt increased to $744 million, mainly due to continued network growth and share buyback funding. However, the company’s net leverage ratio remains conservative at 1.0x. Group capital expenditure was $174 million, supporting organic growth and digital transformation.
What did Reece Ltd management say?
Peter Wilson, Chairman & CEO, said:
FY26 was a year of improved momentum in our ANZ business as volumes recovered, while a weak residential housing market saw softer growth in the US. Throughout the year we focused on delivering our customer promise, progressing our innovation agenda and building out digital capabilities – all of which help us continue building a stronger business.
What’s next for Reece Ltd?
In FY27, Reece expects continued momentum in Australia and New Zealand, supported by a strong project pipeline. In the US, the outlook is more subdued as residential construction remains a tough market, while the non-residential sector has been more stable.
Interest rate sensitivity and housing affordability pressures may create ongoing challenges, but management is optimistic about the long-term market fundamentals and the group’s ability to lead on innovation, digital initiatives, and branch expansion.
Reece share price snapshot
The Reece share price has been among the best performers on the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a gain of around 40%.
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