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Team Veye   March 20, 2026

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Team Veye   March 20, 2026
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Reece’s latest update shows a business holding steady in a difficult market while continuing to invest for the future. The results highlight short-term pressure but also a clear focus on long-term growth and positioning.

Reece Limited (ASX: RCE)

Reece Limited (ASX: RCE) on 23 February 2026 reported HY26 results and showing revenue growth of 6% to $4,648m. Profit measures weakened with EBITDA down 6% and EBIT falling 14%. Earnings per share also declined by 19%. This reflects a tough housing market where demand has stayed soft. The business expanded its network which supported sales but higher costs and investment spending reduced margins.

The result shows stability in revenue but pressure on profitability.

Regionally, ANZ delivered modest growth whereas the US saw softer demand mainly in residential construction. Costs remained high due to expansion and digital investments. Net debt increased to $1.0b due to lower cash flow and share buybacks. Despite this, the balance sheet remains controlled. The company returned $401m to shareholders and declared a dividend of 5.44 cents per share. Management signaled that market conditions are still uncertain.

Looking forward, the company expects no major improvement in demand through FY26. EBIT guidance has been provided in the range of $520m to $540m. The focus remains on improving the operations, digital capabilities, and the branch network. The strategy is to stay prepared so when housing demand improves, growth can accelerate.

Reece continues investing in network expansion, technology and product development. Growth in both ANZ and US footprints supports long-term scale. Digital upgrades and training programs aim to improve efficiency.

Even in a slower market, these steps position the business to advantage when conditions recover and showing a focus on long term value creation rather than short term gains.

(Source: Company Report)

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