Reece H1 profit slides despite 6% revenue growth

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.