Reece Limited Posts Weaker FY25 Results Amid Market Slowdown

Highlights:

• FY25 net profit after tax dropped 24% to $317 million, with EBIT down 20% to $548 million
• ANZ sales rose 1%, while US revenue fell 5% amid housing market weakness
• Final dividend declared at 11.86 cents per share, taking total FY25 payout to 18.36 cents

Earnings Impacted by Softer Markets

Reece Limited (ASX: REH) has reported a challenging FY25, with sales revenue falling 1% year-on-year to $8.98 billion at the time of writing. Net profit after tax (NPAT) dropped 24% to $317 million, while EBIT declined 20% to $548 million. The company said weak end-market demand across both Australia–New Zealand (ANZ) and the US weighed on its performance. Earnings per share fell to 49 cents, down from 65 cents a year earlier.

Regional Performance

In ANZ, sales revenue edged up 1% to $3.88 billion, supported by acquisitions, though EBIT fell 17% to $339 million. The US business remained under pressure, with sales down 5% to US$3.3 billion, impacted by lower residential construction activity and deflation in commodity-linked categories. EBIT for the US division declined 23% to US$136 million.

Network Expansion and Acquisitions

Despite headwinds, Reece continued expanding its branch network, adding 39 new locations globally and completing three bolt-on acquisitions. The company also advanced digital initiatives, including the acquisition of Shadowboxer and the rollout of its maX app in the US, aimed at improving customer experience.

Dividend and Outlook

The board declared a fully franked final dividend of 11.86 cents per share, bringing the total FY25 dividend to 18.36 cents, down from 25.75 cents in FY24. Looking forward, management expects continued softness in the ANZ housing sector and a constrained US housing market over the next 12–18 months, citing high mortgage rates and affordability challenges.

Long-Term Confidence

Chairman and CEO Peter Wilson reaffirmed confidence in Reece’s strategy, noting the company is well-capitalised and positioned to benefit from long-term housing demand and population growth across both regions.

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