Reece Group (ASX:REH) Shares Rise 2.2% Despite Falling Profit

Reece Group (ASX:REH) Shares Rise 2.2% Despite Falling Profit — What Are the Numbers Really Saying?

Sonal Goyal

24 August 2026 06:11 PM AEST

Reece Group (ASX:REH) Shares Rise 2.2% Despite Falling Profit — What Are the Numbers Really Saying?

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Reece Group (ASX:REH) shares gained over 2% on Monday even after the plumbing and bathroom products distributor reported softer FY26 profit — a sign investors may be more focused on resilient ANZ performance and a higher Dividend than on the Earnings dip itself.

FY26 Results at a Glance

Sales Revenue up 4.5% to $9.378 billion (up 7.3% on constant currency).
EBITDA flat at $901 million; EBIT down 2.6% to $534 million; NPAT down 2.8% to $308 million.
EPS still rose 0.7% to 49.5 cents despite lower statutory profit.
Final fully Franked Dividend of 13.40 cents, taking FY26 total to 18.84 cents (up from 18.36 cents).

ANZ Strength Offsets US Weakness

Reece's Australia and New Zealand Business had a strong year — sales up 8.3% to $4.204 billion, EBITDA up 7.3% and EBIT up 6.1%, supported by Volume recovery and continued branch network growth to 678 locations.

The US business told the opposite story: revenue rose 6.5% in US dollar terms, but like-for-like sales fell 1.7% as residential new construction stayed weak. US EBITDA fell 4.5% and EBIT dropped 13.0%, even as the company added 25 net new branches during the year.

Cash Flow and Balance Sheet

Net operating Cash Flow up to $645 million from $600 million.
Capex down to $174 million from $258 million (1.9% of sales).
Net Debt increased to $744 million from $590 million; Leverage Ratio now 1.0x (vs 0.8x).

The Bottom Line

Today's gain suggests the market is rewarding Reece's resilient ANZ momentum and dividend growth over the softer group-level profit figure. With US housing conditions still the main swing factor, a turnaround there would be the next major catalyst for the stock.

FAQs

Q: What was Reece Group's FY26 revenue?

A: $9.378 billion, up 4.5% from $8.978 billion in FY25.

Q: Did Reece's NPAT increase in FY26?

A: No, NPAT declined 2.8% to $308 million, driven by weaker US earnings.

Q: What dividend did Reece Group declare?

A: A final fully franked dividend of 13.40 cents, taking the FY26 total to 18.84 cents per share.

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