• Sales revenue down 3% to $4,402m
• EBIT down 17% to $305m
• NPAT down 19% to $181m
• Ongoing investment in business with 32 net new branches

Reece Limited reported a challenging first half of FY25, with sales revenue down 3% to $4,402m (HY24: $4,537m) and EBIT decreasing 17% to $305m (HY24: $367m). NPAT was down 19% to $181m (HY24: $224m). The performance reflects challenging trading conditions in both the Australia and New Zealand (ANZ) and United States (US) regions. In ANZ, sales revenue was flat at $1,980m (HY24: $1,972m), with a modest decrease in underlying volumes offset by benefits from M&A activity. EBITDA was down 12% to $271m (HY24: $307m) and EBIT decreased 17% to $193m (HY24: $233m). Cost growth for the half was more pronounced in the ANZ region largely due to investment in the business to support long-term growth and ongoing inflationary pressure. The US region saw a 5% decrease in sales revenue to US$1,596m (HY24: US$1,683m) reflecting softness in the residential new construction sector, ongoing price deflation in select commodity related categories, and increased competitive pressure due to the market slowdown. EBITDA decreased 6% to US$135m (HY24: US$143m) and EBIT decreased 15% to US$74m (HY24: US$87m). Despite the challenging conditions, the company continued to invest in the business, with 32 net new branches opened across the Group, including 14 in ANZ and 18 in the US.

Looking ahead, the Group expects soft trading conditions to continue across both regions. The company will continue to invest to build a stronger business and deliver on its 2030 vision of being the trade's most valuable partner.