Reece Ltd (ASX: REH) shares are heading south on Monday after the plumbing products group released its FY26 results.

At the time of writing, the Reece share price is down 5.62% to $15.61. By comparison, the S&P/ASX 200 Index (ASX: XJO) is 0.3% higher to 9,090 points.

The company reported higher revenue for FY26, although profit slipped. Reece also lifted its final dividend, giving shareholders some good news despite the drop in the bottom line.

So, does the result make Reece shares worth buying?

Let’s take a closer look.

Reece lifts its final dividend 13%

Reece declared a fully-franked final dividend of 13.40 cents per share.

That is almost 13% higher than the 11.86 cents per share paid a year earlier.

Combined with the 5.44-cent interim dividend, Reece will pay total dividends of 18.84 cents per share for FY26. That’s up 2.6% from 18.36 cents in FY25.

At the current share price of $15.61, the full-year payout gives Reece shares a trailing dividend yield of around 1.2% before franking credits.

Reece shares will trade ex-dividend on 6 October, with the record date on 7 October. The final dividend will then be paid on 21 October.

What did Reece report?

For the 12 months ended 30 June 2026, Reece reported sales revenue of $9.38 billion, up 4.5% from the previous year.

EBITDA was flat at $901 million, while EBIT fell 2.6% to $534 million. Net profit after tax (NPAT) declined 2.8% to $308 million.

Earnings per share (EPS) still increased 0.7% to 49.5 cents.

The Australian and New Zealand business was the stronger part of the result. Sales rose 8.3% to $4.2 billion, while EBITDA increased 7.3% to $532 million as volumes recovered.

Nonetheless, conditions were tougher across the US business. Sales increased 6.5% in US dollar terms, but EBITDA fell 4.5% as weak residential construction weighed on demand.

Reece also continued investing in its US network, opening 25 new branches during the year.

Are Reece shares a buy?

There were some positives in the result, particularly the recovery in Australia and New Zealand and the higher final dividend.

Management expects that momentum in ANZ to continue into FY27, helped by a solid pipeline of activity.

However, the US outlook remains less certain. Reece expects only modest growth there while residential new construction remains weak.

Investors also need to consider the price they are paying.

At $15.61, Reece shares are trading at around 32 times FY26 earnings. That’s not cheap for a company that reported lower profit for the year and is still dealing with a weak US housing market.

And while the dividend increase is a positive, the 1.2% trailing yield is unlikely to attract investors looking mainly for income.

The post Reece shares sink despite dividend boost. Is it a buy? appeared first on The Motley Fool Australia.

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• Buy, hold, sell: SGH, Reece, Genesis Minerals shares

Motley Fool contributor Aaron Teboneras 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.

Nuix Ltd (ASX: NXL) shares are starting the week with a bang.

Shares in the All Ordinaries Index (ASX: XAO) investigative analytics and intelligence software provider closed on Friday trading for $1.425. In morning trade on Monday, shares are swapping hands for $1.80 apiece, up 26.3%.

For some context, the All Ords is up 0.2% at this same time.

This strong outperformance follows the release of the ASX tech stock’s full year FY 2026 results.

Here’s what stoking investor interest.

Nuix shares surge on return to profit

The ASX All Ords tech stock enjoyed a strong year of growth.

Highlights included an 18.8% year-on-year increase in revenue to $263.2 million. The company credited this to broad-based expansion through both existing customer growth and new customer wins.

And earnings rocketed too. Nuix shares are getting a lift, with the company reporting adjusted management earnings before interest, taxes, depreciation and amortisation (EBITDA) of $59.8 million, up 60.4% from FY 2025, with margins increasing to 22.7% from 16.8% last year.

This helped drive a 154% year on year increase in the company’s underlying cash flow to $51.0 million.

On the bottom line, Nuix swung back into profit, achieving a statutory net profit after tax (NPAT) of $16.4 million, up from a $9.2 million loss in FY 2025.

Tapping into AI

Nuix shares could also get longer-term support from the company’s investments in AI across its operations.

“Shifts in enterprise AI deepen Nuix’s defensive moat and provide revenue opportunities,” the company said.

Nuix noted that its approach to AI adoption is designed to “scale capacity rather than reduce headcount”.

What did management say?

Commenting on the results lifting Nuix shares today, CEO John Ruthven said, “FY26 was a year of profitable growth and decisive action.”

Ruthven added:

Financial performance was robust across key metrics, with ACV [Annualised Contract Value] within our guided range, material increases in profitability and a substantial lift in cash generation. Nuix Neo continues to scale as the primary engine of profitable growth.

During the year, we made the structural changes required to shift from feature selling to platform value. We have restructured our go-to-market with enhanced commercial capability, established a clear AI strategy, and unified product and technology, backed by a one-off R&D Accelerator investment in FY27.

Looking to what could impact Nuix shares in the year ahead, Ruthven said:

We are building on continued underlying momentum. With enhanced commercial capability in place, continued investment in platform and AI capabilities, and a clear strategy for profitable growth, we are well positioned to capture the significant opportunity ahead.

The post Why are Nuix shares rocketing 26% on Monday? appeared first on The Motley Fool Australia.

More reading

• Nuix share price on watch amid robust FY26 earnings and platform growth

Motley Fool contributor Bernd Struben 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.

The GR Engineering Services (ASX: GNG) share price is in focus today after the company reported record FY26 EBITDA of $63.1 million on revenue of $493.2 million, and increased its fully franked dividend to 25.0 cents per share for the year.

What did GR Engineering Services report?

• FY26 revenue rose to $493.2 million (FY25: $479.0 million)
• EBITDA reached $63.1 million, up from $57.2 million in FY25
• NPAT increased to $39.0 million (FY25: $34.2 million)
• Final dividend lifted to 13.0 cents per share, full year total 25.0 cents (fully franked)
• Year-end cash position of $87.9 million with no debt
• Strong operating cashflow of $62.7 million for the year

What else do investors need to know?

GR Engineering has been awarded more than $1.0 billion in new contracts since 1 April 2026, supporting a robust pipeline into FY27 and FY28. Key contract wins cover a diversified commodity base, with over 60% of FY27 revenue expected from non-gold projects.

To fund growth and recent contract wins, the company announced a placement aiming to raise up to $100 million plus a $10 million share purchase plan. Together, these moves are set to boost pro-forma cash to $197.9 million post-raising, maintaining the company’s debt-free posture and providing flexibility for acquisitions and IT upgrades.

What’s next for GR Engineering Services?

Looking ahead, GR Engineering is forecasting FY27 revenue in the range of $825 million to $850 million. Over 90% of this guidance is already secured through existing contracts, underpinning strong confidence in future earnings.

The company’s focus remains on delivering contracted work across a growing pipeline, expanding across multiple commodities, and deploying new capital into operational capabilities and potential acquisitions.

GR Engineering Services share price snapshot

Over the past 12 months, GNG Engineering shares have risen 41%, outperforming the All Ordinaries Index (ASX: XAO), which is flat over the same period.

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The post GR Engineering Services posts record FY26 result and lifts dividend appeared first on The Motley Fool Australia.

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• GR Engineering Services lands $275m Yitirrti project contract

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.