Reece (REH) H1 2026 earnings summary

Executive summary

• Sales revenue rose 6% year-over-year to $4,648 million for HY26, driven by network expansion, but like-for-like sales were flat amid 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%).

• Return on capital ratio at 10.8%, down 222 basis points.

• Net operating cash inflows of $199m, down from $256m in the prior year; free cash flow $142m.

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

• Capex to sales ratio at 1.8%, supporting network and technology investments.

Outlook and guidance

• No material shift in demand expected for the remainder of FY26; management remains cautious.

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

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

• 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; no substantial change in performance expected in the second half.