Key Highlights

  • FY26 sales Revenue increased 4.5% to AUD 9.38bn.
  • ANZ EBITDA rose 7.3% as activity volumes recovered during the year.
  • United States like-for-like sales declined 1.7% amid softer residential construction.
  • Reece declared a fully franked final Dividend of 13.40 cents per share.

Reece entered FY27 with its two regional businesses moving at different speeds. Reece (ASX:REH) benefited from improving activity across Australia and New Zealand, but its United States network faced weaker like-for-like Demand in residential construction. Group sales still advanced in FY26, although lower US profitability left net profit slightly below the prior year.

Company Business

Reece distributes plumbing, bathroom, heating, cooling, waterworks and irrigation products to trade customers. The company operates branch and showroom networks across Australia, New Zealand and the United States, supported by own-brand products and supply-chain infrastructure. Renovation, maintenance and new construction activity influence demand, making housing conditions and trade volumes central to operating performance.

Sector Context

Reece reported its FY26 result on 24 August 2026. Sales revenue rose 4.5% to AUD 9,378mn, or 7.3% in constant currency, while EBITDA of AUD 901mn was broadly flat. EBIT fell 2.6% to AUD 534mn and net profit after tax declined 2.8% to AUD 308mn, although Earnings Per Share edged 0.7% higher to 49.5 cents.

Directors declared a fully franked final dividend of 13.40 cents per share, payable on 21 October 2026, taking the full-year payout to 18.84 cents against 18.36 cents in FY2025. Chairman and chief executive Peter Wilson framed FY26 as a year of improved momentum in the ANZ Business as volumes recovered, with a weak residential housing market holding back growth in the United States. Rather than pausing expansion through the cycle, the group opened 25 net new branches in America during the year.

The ANZ segment generated sales of AUD 4,204mn, up 8.3%, with EBITDA of AUD 532mn, up 7.3%, and EBIT of AUD 360mn, up 6.1%. The United States segment recorded sales of US$3,511mn, 6.5% higher, but EBITDA fell 4.5% to US$251mn and EBIT dropped 13.0% to US$118mn, with like-for-like sales down 1.7% for the year. Group Operating Cash Flow was AUD 645mn and Capital Expenditure AUD 174mn, equal to 1.9% of sales.

Net Debt rose to AUD 744mn from AUD 590mn, leaving net Leverage near 1.0 times on a pre-AASB 16 basis.

Risks to Consider

The United States business is the swing factor: a prolonged downturn in American residential construction would continue to pressure margins even as branch numbers grow. Interest rates and housing affordability affect demand in both markets. Currency translation, competitive pricing, higher net debt and the cost of running a large physical network all add to earnings variability.

What to Watch Next

Management expects measured momentum to continue in ANZ, supported by the activity pipeline, and only modest growth in the United States while residential construction remains challenging. Trading commentary around the annual general meeting, American housing indicators, the pace of branch openings and the direction of the Australian dollar — which trimmed reported growth in FY26 — are the practical things to monitor from here. Reece closed FY26 with record sales, a higher dividend and a clear divide between a recovering ANZ operation and a United States business working through a soft housing cycle.

Both depend heavily on external conditions rather than on execution alone.