Reece down -15% after feeling the pinch in a 'turbulent' FY25
Plumbing and trade giant Reece (ASX:REH) has been down -15% in intra-day trade after delivering a softer set of numbers for FY25, as sluggish demand on both sides of the Pacific weighed on its bottom line.
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Group sales revenue dipped -1%, to $8.98 billion, with earnings before interest and tax sliding 20% to $548 million. Net profit after tax came in at $317M, down 24% on the prior year, while earnings per share dropped to 49 cents.
Shareholders will pocket a fully franked final dividend of 11.8c, bringing the full-year payout to 18.3cps; a 29% cut from FY24.
“A turbulent year,” said CEO Peter Wilson, not sugar-coating the result – before pointing to a tough housing market as the main culprit. “We delivered a disappointing result, with full-year earnings impacted by soft end markets across both regions.”
In Australia and New Zealand, sales edged up +1%, to $3.88B, thanks to acquisitions, but EBIT still fell -17% to $339M. Meanwhile, Reece’s U.S. business copped it harder; revenue fell -5% to US$3.3B, and EBIT dropped -23% to US$136M.
“The U.S. housing market has been hit by high mortgage rates and affordability challenges, and we expect that to continue for another 12 to 18 months,” Wilson added.
Despite the softer result, Reece kept investing. It opened 39 new branches globally, made three bolt-on acquisitions, and held expenditure steady at $258M (about 2.9% of sales). Return on capital dropped to 11.8%, down -3.65%.
Looking ahead, management sees a “slow recovery” on the cards, but Wilson remains upbeat on the longer-term outlook. “We are well capitalised and will continue to look beyond the cycle. Reece operates in large, resilient markets where housing undersupply and population growth will drive demand.”
REH has been down -15.14%, at $11.94 a share, in arvo trade.
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$11.76 |
Change
-2.310(16.4%) |
Mkt cap ! $7.596B | |||
| Open | High | Low | Value | Volume |
| $12.31 | $12.32 | $11.01 | $67.69M | 5.760M |
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| No. | Vol. | Price($) |
|---|---|---|
| 4 | 8772 | $11.76 |
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| Price($) | Vol. | No. |
|---|---|---|
| $11.96 | 15628 | 2 |
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| Last trade - 16.10pm 25/08/2025 (20 minute delay) ? |
| REH (ASX) Chart |