Reece (REH) H1 2026 earnings summary

Executive summary

• Sales revenue rose 6% to $4,648 million for HY26, driven by network expansion, but like-for-like sales were flat due to subdued housing markets in both ANZ and the US.

• EBITDA declined 6% to $448 million and EBIT fell 14% to $262 million, reflecting higher costs from expansion, strategic investments, and increased depreciation/amortisation.

• NPAT dropped 20% to $144 million, and EPS decreased 19% to 22.7 cents compared to HY25.

• Interim dividend set at 5.44 cents per share, fully franked, down from 6.50 cents in the prior period.

• Management remains cautious, not expecting a material demand recovery for the remainder of FY26.

Financial highlights

• Sales revenue: $4,648m (up 6% year-over-year); EBITDA: $448m (down 6%); EBIT: $262m (down 14%); NPAT: $144m (down 20%); EPS: 22.7 cents (down 19%).

• ANZ sales up 4% to $2,062m; EBITDA down 4% to $261m; EBIT down 7% to $179m.

• US sales up 6% to US$1,696m; EBITDA down 9% to US$123m; EBIT down 26% to US$55m.

• Net cash from operating activities: $199m, down from $256m in the prior period; free cash flow $142m.

• Net debt increased to $1.0b, mainly due to lower operating cash inflow and share buybacks; net leverage ratio rose to 1.5x.

Outlook and guidance

• Group EBIT for FY26 is forecasted between $520m and $540m.

• No material shift in demand expected for the remainder of FY26; US residential new construction remains weak.

• ANZ shows early signs of housing market recovery, but recovery is geographically mixed and challenged by interest rate rises.

• Ongoing investment in network expansion and digital initiatives expected to continue.

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