• Challenging trading environment driven by ongoing housing market softness
• Subdued underlying volumes and pressure on EBIT margins
• Expected FY25 Group EBIT within range of A$548m - A$558m (unaudited)

Reece Limited ('Reece Group'; ASX: REH) today announces a full year trading update for FY25. As anticipated at the half year, the trading environment has remained challenging during the second half of FY25, driven by ongoing housing market softness across both Australia/New Zealand and the US regions. Underlying volumes continue to be subdued and EBIT margins remain under pressure as the company navigates the cycle. As a result, Reece expects Group EBIT for FY25 to be within the range of A$548m - A$558m (unaudited). The Chairman and CEO, Peter Wilson, stated that the expected FY25 results reflect the backdrop of continuing macro-economic headwinds. In Australia and New Zealand, volume settings remain soft, and recent interest rate cuts have not yet translated to improved housing activity. In the US, Reece's high exposure to the residential new construction (RNC) sector continues to impact performance, with housing units under construction remaining down year on year, particularly in the sunbelt region where the company operates. Mortgage rates remain high and housing affordability continues to weigh on the US residential market. Reece has also seen increased competition across all segments of its US business from new market entrants and the slowdown in RNC, which has impacted profitability for the year. The company remains confident in its long-term approach despite these challenging conditions.

Reece expects Group EBIT for FY25 to be within the range of A$548m - A$558m (unaudited).