The Reece Ltd (ASX: REH) share price is in focus after the company reported a 6% rise in sales revenue to $4.65 billion, but saw net profit after tax fall 20% for the half year ended 31 December 2025.
What did Reece report?
- Sales revenue up 6% to $4,648 million
- EBITDA down 6% to $448 million
- Net profit after tax (NPAT) down 20% to $144 million
- EPS down 19% to 22.7 cents
- Interim dividend of 5.44 cents per share, fully franked
- Capex to sales ratio of 1.8%
What else do investors need to know?
Reece’s results reflect ongoing subdued conditions in the housing and construction markets across both Australia/New Zealand and the United States. Likeâforâlike sales were flat, with the company’s network expansion contributing to overall revenue growth.
The business remains focused on three key strategic priorities: operational excellence, accelerating innovation, and investing for profitable growth. During the half, Reece added 23 net new branches across its ANZ and US networks, introduced new products, and enhanced digital capabilities for both team members and customers.
Net debt increased to $1.0 billion due to lower operating cash flow and partially funding the share buyback. A total of $401 million was returned to shareholders through these buybacks.
What did Reece management say?
Chair & CEO Peter Wilson said:
Our half year result reflects the challenges we outlined last year, with subdued housing markets continuing to impact demand resulting in flat sales on a like for like basis. In our ANZ business, we have seen signs of a gradual recovery emerging, but performance remains mixed across states. In the US, the residential new construction market is still being impacted by affordability pressures.
While it’s a challenging environment, we want to do better. We’re focused on actions that position us well when conditions improve â showing up for customers, delivering on our 2030 strategy and building a stronger business for the long-term.
What’s next for Reece?
Reece expects subdued trading conditions to persist for the rest of FY26 and does not anticipate a material shift in demand in the short term. The business remains cautious about the pace of any recovery, but continues to invest strategically to position itself for long-term growth.
Management forecasts group EBIT for FY26 in the range of $520â$540 million. The board has declared a fully franked 5.44 cent interim dividend to be paid on 1 April 2026.
Reece share price snapshot
Over the pat 12 months, Reece shares have declined 27%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.
The post Reece HY26 results: Profit falls despite higher sales revenue appeared first on The Motley Fool Australia.
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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.