Reece Limited (REECF) Q4 2026 Earnings Report

The call presented a mixed picture: solid topline growth (A$9.4bn, +4.5%) and clear operational/strategic progress in ANZ (ANZ sales +8.3%, ANZ EBIT +6%), meaningful U.S. network expansion (net +25 branches) and strong cash generation and capital returns (A$645m operating cash inflow, A$401m buybacks). Offsetting these positives were flat group EBITDA, a modest decline in group EBIT, notable margin pressure in the U.S. (LFL sales -1.7%, U.S. EBIT -13%), elevated costs from ongoing investment, and exposure to a weak U.S. residential market and macro uncertainty. Management emphasized a through‑the‑cycle, multi‑year strategy and expects returns to recover as growth investments moderate, but near‑term uncertainty (particularly in the U.S.) tempers the outlook.

Management guided that ANZ enters FY27 with a solid pipeline to support first‑half momentum while the U.S. is expected to deliver only modest sales growth; the U.S. rollout remains a multi‑year plan with an anticipated 15–20 net new branches p.a. (after net 25 opened in FY26 and 24 in FY25). Key numeric pointers: FY26 sales $9.4bn (+4.5%), EBITDA $901m (flat), EBIT $534m (‑2.6%), EPS $0.495, return on capital 11.9%; exiting FY26 net debt $744m (1.0x EBITDA, down from 1.5x at Dec), net operating cash inflow $645m, net working capital/sales 19%, $401m returned via buybacks, FY26 capex 1.9% of sales with management expecting capex to normalise toward the historic ~2–3% range, FY27 gross interest expense ~$60–70m (FY26 $66m), and a further ~$10m Metalflex amortisation impact in FY27; management reiterated risks from soft U.S. residential construction, interest‑rate sensitivity and housing affordability.