Reece revenue rises 4.5% to A$9.4 billion in FY26 despite lower EBIT

Key Facts

Reece reported a 4.5% increase in group revenue to A$9.4 billion in fiscal 2026, while earnings before interest and tax fell 2.6% to A$534 million, according to a company filing. The result shows sales growth alongside a decline in operating profit, after both fell in the prior year. Chairman and Chief Executive Peter Wilson said the year was marked by improving momentum in the Australia and New Zealand businesses as volumes recovered, while a weak residential housing market constrained U.S. growth. The group operates in two markets with different demand drivers, as reflected in the regional figures. The company is listed in Australia under the ticker REH, according to its filing.

In Australia and New Zealand, revenue rose 8.3% to A$4.2 billion in FY26, with Reece saying higher volumes drove the growth. Wilson linked the region’s improving momentum to a recovery in volumes, indicating stronger trading activity compared with the previous period covered by the company filing. The result contributed to higher group revenue, but does not erase the difference in the U.S. business’s performance. The company is basing its outlook for the next fiscal year on what it described as a strong pipeline of activity in ANZ. It expects that to support momentum in the first half of FY27.

In the U.S., revenue increased 6.5% to US$3.5 billion in FY26, which the company attributed to network expansion. Reece opened 25 net branches during the year, adding to its presence in the U.S. market. But revenue growth came in an environment where new home construction remained challenging, according to the company filing. The company said the non-residential sector was more resilient, highlighting differing demand conditions across parts of the market. Reece therefore expects more modest growth in the U.S. during FY27.

At the profitability level, earnings before interest, tax, depreciation and amortisation remained at A$901 million, while net profit after tax fell 2.8% to A$308 million. By contrast, earnings per share rose 0.7% to 49.5 Australian cents. The results follow FY25, when group revenue fell 1% to A$9.0 billion and earnings before interest and tax dropped 20% to A$548 million. Revenue therefore recovered in FY26 from the previous year’s decline, while EBIT remained below its previous level of A$548 million. The first half of FY26 alone also recorded revenue growth of 6% to A$4.648 billion, against a 6% fall in EBITDA to A$448 million and a 14% decline in EBIT to A$262 million.

Alongside branch expansion, Reece said it invested in its digital ecosystem, customer experience and team capabilities, and accelerated the adoption of artificial intelligence tools across its business. The company cited these initiatives as part of its efforts to develop its operations and digital capabilities during FY26. The filing places physical expansion and digital investment in the context of a year in which revenue rose while EBIT and net profit after tax fell. The filing does not state that these investments caused the decline in profitability, so the operating and financial figures remain separate indicators in assessing the year’s results. Regional priorities also differed: higher volumes supported ANZ, while U.S. growth was linked to network expansion amid weakness in residential housing.

The company enters FY27 with differing expectations for the two regions: a strong pipeline of activity in Australia and New Zealand that it expects to support first-half momentum, and more modest growth in the U.S. It said new residential construction in the U.S. remains challenging, while the non-residential sector has been more resilient. It also pointed to market sensitivity to interest rates and housing affordability risks. This means its U.S. outlook remains tied to weakness in residential construction activity, while its view for the first half in ANZ is based on the pipeline it described as strong. The filing did not provide a specific later date beyond the next fiscal year among the available facts.