Preliminary Final Report
| Stock | Reece Ltd (REH.ASX) |
|---|---|
| Release Time | 25 Aug 2025, 8 a.m. |
| Price Sensitive | Yes |
Reece Ltd reports FY25 preliminary results
- Sales revenue down 1.4% to $8,978m
- EBITDA down 10.6% to $901m
- NPAT down 24.4% to $317m
- Declared final dividend of 11.86 cents per share
Reece Group's FY25 financial performance reflects low demand settings in both the ANZ and US regions. Sales revenue decreased 1% to $8,978m (FY24: $9,105m) and was down 2% on a constant currency basis. EBITDA decreased 11% to $901m (FY24: $1,007m), with Group costs excluding depreciation and amortisation increasing by 3% driven by higher salary and other operating expenses. EBIT was down 20% to $548m (FY24 $681m) reflecting ongoing investment in the business, including three bolt-on acquisitions and 39 net new branches across the Group. NPAT was down 24% to $317m (FY24: $419m). The Group generated net operating cash inflows of $600m (FY24: $751m) and the capex to sales ratio was 2.9% for the year. Capital expenditure of $258m (FY24: $258m) supported organic network expansion, branch refurbishments and investment in technology. The Group's net working capital (NWC) to sales ratio was 19%, an increase of 1% on the prior year. Net debt increased to $590m (FY24: $518m) driven by lower operating net cash inflows and ongoing investment to support future growth. The business remains well capitalised with a net leverage ratio of 0.8x (FY24: 0.6x). Reece made solid progress against its strategic priorities in FY25, including employee training and development, the acquisition of Shadowboxer to strengthen in-house digital capabilities, and the launch of the maX app to enhance the customised service offering in the US.
Reece expects a slow housing market recovery. In ANZ, the outlook remains uncertain with a period of soft activity still to play out. In the US, Reece anticipates the housing market to be constrained for the next 12-18 months with affordability continuing to weigh on housing activity.
The Group operates in large markets with attractive long-term fundamentals. Housing underbuild and population growth will drive future demand and ongoing need for investment in infrastructure across both regions.