How did Reece (ASX:REH) perform in the first half of FY26?

Reece reported a mixed result where sales revenue grew by 6% to $4.65 billion, but profitability declined across all key metrics. EBITDA fell 6% to $448 million and EBIT dropped 14% to $262 million for the half-year ended Dec. 31, 2025.

Why did Reece’s (ASX:REH) profits fall despite higher revenue?

The profit squeeze was primarily driven by subdued global housing markets and affordability pressures, particularly in the US residential construction sector. While total revenue rose, like-for-like sales remained flat, suggesting that growth came from new locations or price adjustments rather than organic volume increases in existing branches.

What was the impact on Reece (ASX:REH) earnings per share and dividends?

Earnings per share for the half-year slid 19% to 23 cents, reflecting the double-digit drop in underlying EBIT. Despite this earnings compression, the board maintained shareholder returns by declaring a fully franked interim dividend of 5.44 cents per share.

How is the US market affecting Reece’s (ASX:REH) financial outlook?

The US business is currently a drag on performance due to high affordability pressures that are stalling new residential construction. CEO Peter Wilson noted that these macroeconomic factors are limiting demand in the region.

Is the Australia and New Zealand market recovering for Reece?

There are "early signs" of a gradual recovery in the ANZ region, but the performance is described as inconsistent across different states. While some areas are starting to bounce back, the recovery is not yet uniform enough to offset the broader group weakness.

What is the management’s guidance for the remainder of FY26?

Reece maintains a cautious outlook and does not expect a "material shift" in demand for the rest of the 2026 fiscal year. Management signaled that the pace of market recovery remains uncertain, effectively dampening expectations for a rapid earnings rebound in H2.

What are the main "bull" and "bear" points for Reece (ASX:REH)?

The bull case rests on Reece’s ability to grow revenue in a down market and its commitment to a "2030 strategy" focused on long-term scale. The bear case highlights the 14% EBIT slump and the lack of a clear catalyst for a housing market recovery in the near term.

How does this result change the risk profile of Reece (ASX:REH) stock?

This result confirms that Reece is highly cyclical and sensitive to global interest rates and housing starts. While the company is operationally disciplined, the 19% drop in EPS shows that the stock carries significant downside risk when the construction cycle turns.

Reece H1 profit slides despite 6% revenue growth

Written by Isaac FrancisPublished Feb. 22 2026Last Updated Feb. 22 2026

Reece (ASX:REH) recorded a downturn in profitability for the first half of the 2026 fiscal year, despite a modest lift in top-line revenue.

According to the company's H1 FY26 results for the period ended Dec. 31, 2025, sales revenue increased by 6% to $4.65 billion.

However, the growth did not translate to the bottom line, as the company grappled with challenging conditions in the global housing sector.

EBITDA fell 6% to $448 million, while EBIT saw a sharper decline of 14%, dropping to $262 million.

Earnings per share slid 19% to 23 cents. Despite the earnings compression, the board declared a fully franked interim dividend of 5.44 cents per share.

CEO Peter Wilson attributed the performance to "subdued housing markets," noting that sales were essentially flat on a like-for-like basis.

While the Australia and New Zealand division showed early signs of a "gradual recovery," performance remained inconsistent across different states.

Meanwhile, the US business continued to face headwinds from affordability pressures impacting new residential construction.

Reece maintains a cautious outlook, with leaderships saying does not anticipate a material shift in demand for the remainder of FY26, as the pace of market recovery remains uncertain.

The group remains focused on its long-term "2030 strategy" and maintaining operational discipline until industry conditions improve.