Reece (REH) investor relations material

Executive summary

• FY 2025 was one of the most challenging years, with group sales down 1% to $9 billion and earnings impacted by soft end markets in both regions.

• EBITDA declined 11% to $901 million, and EBIT fell 20% to $548 million, reflecting increased costs and competitive pressures.

• Earnings per share dropped 24% to 49c, with return on capital at 11.8%, down 365bps.

• The group continued to invest in people, innovation, and network expansion, launching new products and digital capabilities.

• Both ANZ and US regions expanded their branch networks, with 15 new branches in ANZ and 24 in the US.

Financial highlights

• Group sales decreased 1% to $9 billion year-over-year.

• EBITDA dropped 11% to $901 million; EBIT down 20% to $548 million.

• Return on capital ratio declined 365 basis points to 11.8%.

• Net operating cash inflows were $600 million, down from $751 million in FY24.

• CapEx to sales ratio at 2.9%, supporting ongoing investment.

Outlook and guidance

• ANZ outlook remains uncertain with continued soft volumes and a slow recovery anticipated.

• US housing market expected to remain constrained for 12–18 months, with affordability and high mortgage rates as key headwinds.

• Management anticipates a slow recovery and continued market headwinds but remains confident in the long-term approach.