Reece revenue climbs on network growth as expansion costs hit profit

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

Reece Group reported mixed interim results for the six months to 31 December 2025, as challenging housing market conditions in Australia, New Zealand and the United States weighed on profitability despite higher sales. Group revenue rose 5.6% to $4.65 billion, driven largely by ongoing network expansion, but higher operating expenses, including labour, digital projects and property costs, compressed margins and led to a 20.3% fall in net profit after tax to $144 million.

Earnings were further impacted by increased depreciation and amortisation from sustained investment in branch growth and strategic initiatives, with EBITDA down 5.7% to $447.7 million and EBIT down 14% to $261.9 million. The company’s ANZ business delivered modest volume growth and a 4% rise in revenue, while the US arm posted 6% sales growth in local currency; however, both regions saw profit decline due to elevated expansion-related costs, prompting a reduced interim dividend of 5.44 cents per share compared with 6.50 cents a year earlier.

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 Group is a leading distributor of plumbing, waterworks and HVAC-R products, serving commercial and residential customers through more than 900 branches across Australia, New Zealand and the United States. Founded in 1920 and listed on the ASX under ticker REH, the company employs about 9,000 people and focuses on network expansion and digital investment to support long-term growth in its core trade markets.

YTD Price Performance: 3.58%

Average Trading Volume: 724,773

Technical Sentiment Signal: Hold

Current Market Cap: A$8.48B

Learn more about REH stock on TipRanks’ Stock Analysis page.