Reece (REH) investor relations material

Executive summary

• Sales revenue increased 6% to AUD 4.6 billion for HY26, driven by network expansion despite subdued demand and challenging housing markets in both regions.

• EBITDA declined 6% to AUD 448 million and EBIT fell 14% to AUD 262 million, reflecting higher costs, ongoing investment, and increased depreciation.

• EPS dropped 19% year-over-year, with NPAT down 20% to AUD 144 million.

• Interim dividend declared at AUD 0.0544 per share, fully franked.

• The period was marked by mixed performance, with housing affordability and soft demand as key challenges.

Financial highlights

• Group sales up 6% year-over-year to AUD 4.6 billion; like-for-like sales flat.

• EBITDA down 6% to AUD 448 million; EBIT down 14% to AUD 262 million.

• Net operating cash inflows of AUD 199 million, down from AUD 256 million year-over-year.

• Net debt increased to AUD 1,008 million, mainly due to lower operating cash inflow and share buyback funding.

• $401 million returned to shareholders via share buyback.

Outlook and guidance

• Group EBIT for FY26 expected in the range of AUD 520 million to AUD 540 million.

• ANZ region shows early signs of housing market recovery, but recovery is geographically mixed and cautious due to interest rate rises.

• US residential new construction remains weak, with ongoing uncertainty and no substantial change in performance expected in the second half.

• Management expects to remain compliant with debt covenants for at least 12 months after the reporting date.