Reece Limited (REECF) AI Stock Analysis
Reece Limited
(Other OTC:REECF)
No summary available
Reece Limited (REECF) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $6.25B
- Dividend Yield
- 1.13%
- Average Volume (3M)
- 193
- Price to Earnings (P/E)
- 34.2
- Beta (1Y)
- -0.11
- Revenue Growth
- 9.57%
- EPS Growth
- 6.06%
- Country
- US
- Employees
- 9,000
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Industrial - Distribution
Reece Limited Business Overview & Revenue Model
Company Description
Reece Limited operates as a major distributor of various essential products across Australia, the United States, and New Zealand. Its comprehensive product range includes plumbing, bathroom amenities, heating, ventilation, and air-conditioning (HVAC)...
Reece Limited Earnings Call Summary
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.
Q4-2026 Updates
Positive Updates
Negative Updates
Company Guidance
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.
Reece Limited Peers Comparison
Overall Rating
AU:ACF65.5Neutral
AU:GWA62Neutral
AU:WAT62Neutral
AU:RWC59Neutral
AU:CYG50Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| AU:ACF | 66Neutral | AUD 365.28M | 15.15 | 10.64% | 3.95% | 30.67% | -24.67% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| AU:GWA | 62Neutral | AUD 521.49M | 11.16 | 16.46% | 8.29% | 0.92% | 12.22% |
| AU:WAT | 62Neutral | AUD 252.03M | 16.36 | 10.34% | 2.73% | 1.42% | 61.72% |
| AU:RWC | 59Neutral | AUD 3.27B | 250.72 | 0.81% | 1.54% | -5.16% | -93.82% |
| AU:CYG | 50Neutral | AUD 51.45M | -3.17 | -14.13% | ― | 2.69% | 51.68% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| REECF | Reece Limited | 10.16 | 3.17 | 45.29% | |
| AU:CYG | Coventry Group Limited | 0.37 | -0.23 | -38.33% | |
| AU:RWC | Reliance Worldwide Corp. Ltd. | 4.39 | 0.38 | 9.61% | |
| AU:WAT | Waterco Limited | 7.20 | 2.27 | 45.96% | |
| AU:ACF | Acrow Formwork and Construction Services Limited | 0.86 | -0.21 | -19.83% | |
| AU:GWA | GWA Group Limited | 2.05 | -0.18 | -7.99% |
Disclaimer
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