Reece (REH) investor relations material

Executive summary

• Sales revenue increased 4.5% year-over-year to AUD 9.4 billion, with ANZ volumes recovering strongly and US growth softer due to weak residential construction.

• EBITDA remained flat at AUD 901 million, while EBIT declined 2.6% to AUD 534 million.

• Earnings per share rose 0.7% to AUD 0.495, return on capital improved to 11.9%, and total dividends increased 2.6% to AUD 0.1884 per share.

• Strategic focus included operational excellence, digital innovation, network expansion, and ongoing investment in people and technology.

Financial highlights

• ANZ sales up 8.3% to AUD 4,204 million, with EBITDA up 7.3% and EBIT up 6.1%.

• US sales up 6.5% to USD 3,511 million, but like-for-like sales down 1.7%, EBITDA down 4.5%, and EBIT down 13%.

• Group net operating cash inflows were AUD 645 million; capital expenditure was 1.9% of sales, totaling AUD 174 million.

• Share buybacks returned AUD 401 million to shareholders.

• Total dividend per share fully franked at 18.84 cents.

Outlook and guidance

• ANZ enters FY27 with a solid activity pipeline, supporting first-half momentum; second-half outlook remains uncertain due to interest rate sensitivity and housing affordability.

• US residential construction remains challenging, with modest growth expected; non-residential segment, especially data centers, is a bright spot.

• CapEx expected to normalize to 2–3% of sales in the medium term.

• Ongoing dual strategy of organic growth and disciplined M&A in the US.