Reece grows revenue but profits slide as housing slowdown bites

Reece Limited ( (AU:REH) ) just unveiled an update.

Reece Limited reported half-year 2026 sales revenue up 6% to $4.65 billion, driven by network expansion, but like-for-like sales were flat as subdued housing markets in ANZ and the U.S. weighed on demand. Profitability weakened, with EBITDA down 6%, EBIT down 14%, NPAT down 20% to $144 million and EPS falling 19%, while the interim dividend was cut 16% as higher costs, increased depreciation and rising net debt to $1.0 billion pressured returns, even as the company continued strategic investments and returned $401 million to shareholders via buybacks.

The group maintained capital expenditure at 1.8% of sales to support new branches, refurbishments and technology upgrades, pushing the net leverage ratio to 1.5x but leaving the balance sheet described as well capitalised. Management highlighted mixed signs of gradual recovery in ANZ and ongoing affordability pressures in U.S. residential new construction, signalling a cautious outlook with no material improvement in demand expected for the rest of FY26, even as Reece pursues its 2030 strategy and longer-term growth priorities.

The most recent analyst rating on (AU:REH) stock is a Hold with a A$14.00 price target. To see the full list of analyst forecasts on Reece Limited stock, see the AU:REH Stock Forecast page.

More about Reece Limited

Reece Limited is a plumbing and bathroom products distributor listed on the ASX, operating across Australia, New Zealand and the U.S. housing markets. The group focuses on supplying trade customers through an expanding branch network, supported by digital tools, product innovation and investments in operational excellence to strengthen its position in residential construction and renovation segments.

YTD Price Performance: 3.58%

Average Trading Volume: 724,773

Technical Sentiment Signal: Hold

Current Market Cap: A$8.48B

See more insights into REH stock on TipRanks’ Stock Analysis page.