• Soft housing activity impacting performance, continuing to invest through the cycle
• Expect market to remain constrained for next 12-18 months in both ANZ and US
• Confidence in long-term approach, large markets with attractive fundamentals

Reece Limited's FY25 investor presentation provides an overview of the company's performance and outlook. The key financial highlights include a 1% decline in sales revenue to $9.0 billion, an 11% decrease in EBITDA to $901 million, and a 20% drop in EBIT to $548 million. Earnings per share declined 24% to 49 cents, while return on capital decreased by 365 basis points to 11.8%.The presentation outlines Reece's strategic priorities, including operational excellence, accelerating innovation, and investing for profitable growth. The company continues to expand its branch network, with 15 new branches in Australia/New Zealand and 24 in the US. Reece is also focused on building capability to support its growing network.The outlook for both the ANZ and US markets remains uncertain, with soft volumes and a slow recovery anticipated. In ANZ, volumes are expected to remain soft, though rate cuts are expected to have a positive impact on the housing sector over time. In the US, the housing market recovery is delayed, with mortgage rates and affordability continuing to weigh on activity.Despite the near-term challenges, Reece remains confident in its long-term approach, highlighting the large markets and attractive fundamentals. The company is focused on enabling long-term profitable growth through investment in the business, maintaining a strong balance sheet, and returning capital to shareholders.

Reece expects gross interest expense of $50 million to $60 million for FY26, based on current drawdowns, interest, and exchange rates (excluding AASB16 Leases interest).

Reece expects the market to remain constrained for the next 12-18 months in both Australia/New Zealand and the US, with soft volumes and a slow recovery anticipated. The company remains confident in its long-term approach, focused on enabling profitable growth through investment in the business and maintaining a strong balance sheet.