Reece Limited (ASX: REH), a leading distributor of plumbing, waterworks and HVAC-R products across Australia, New Zealand, and the United States, today announced its financial results for the half-year ended 31 December 2025 (HY26). The company operates through more than 900 branches and employs approximately 9,000 people. The HY26 results reflect a mixed performance, with sales revenue increasing by 6% to $4,648 million, while EBITDA decreased by 6% to $448 million. EBIT also declined by 14% to $262 million, and earnings per share (EPS) were down 19% to 23 cents.
The company reported that Return on Capital (ROC) decreased by 222 basis points to 10.8% compared to December 2024. Capital expenditure to sales stood at 1.8%. Despite the challenges, Reece declared an interim dividend of 5.44 cents per share, fully franked. According to Peter Wilson, Chair & CEO, the results reflect the challenges outlined last year, with subdued housing markets impacting demand, resulting in flat like-for-like sales.
Regionally, ANZ sales revenue increased by 4% to $2,062 million, while EBITDA decreased by 4% to $261 million. The US region saw sales revenue increase by 6% to US$1,696 million, but EBITDA decreased by 9% to US$123 million, impacted by higher costs associated with network expansion. During HY26, Reece added four net new branches in ANZ, bringing the total to 680, and 19 net new branches in the US, bringing the total to 286.
Looking ahead, Reece anticipates Group EBIT for the full year FY26 to be within the range of $520-$540 million. The Board has set the record date for the fully franked dividend of 5.44 cents per share as 18 March 2026, with a payment date of 1 April 2026. The company remains cautious about the pace of recovery and does not expect a material shift in demand for the remainder of FY26.
