Reece Limited 1Q FY26 Performance Summary

Reece Limited (ASX: REH) reported solid top-line momentum in its 1Q FY26 update, delivering AU$2.4 billion in sales, an 8% year-on-year increase, supported largely by its FY25 network expansion. Like-for-like sales grew modestly at 2%, with Australia and New Zealand posting low single-digit gains, while the US experienced a slight decline. Despite revenue growth, earnings softened as EBITDA fell 8% to AU$222 million and EBIT dropped 18% to AU$129 million, reflecting higher depreciation and ongoing investment in capability and network growth. The Group added 15 new branches during the quarter across ANZ and the US. Management noted that market conditions remain subdued, particularly in housing. Reece also completed a significant off-market share buyback of 28.1 million shares for AU$365 million, funded through cash and debt, with expected FY26 interest costs of AU$65–75 million. Overall, Reece maintains a long-term investment focus despite near-term softness.

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