Today, Reece Group (ASX: REH) announced our results for the first half of FY25. 

Reece Group’s performance for the first half of FY25 reflects the challenging trading conditions in both the ANZ and US regions. At a Group level, revenue is down 3% to AU$4,402m (HY24: $4,537m). EBIT was down 17% to $305m for the half (HY: $367m). 

Costs including depreciation and amortisation increased by 3.6% due to ongoing investment in the business.  This includes two bolt-on acquisitions in ANZ and 32 new branches across the Group. 

In ANZ, sales revenue is flat, with a modest decrease in underlying volumes offset by benefits from M&A activity. In the US, sales revenue decreased 5%, reflecting ongoing soft market conditions in the Sunbelt region, particularly in the new construction sector. 

Peter Wilson, Chairman & CEO, said: “Our performance for the first half reflects the challenging trading environment in both regions as mortgage rates and affordability continue to create near term headwinds in our sector. 

“Despite the softer first half, we continued to invest in the business, expanding our branch network, lifting store standards and enhancing our core capabilities.  

“While we know the short term will have its challenges, the current environment is one Reece has seen before. Like we always do, we’ll look beyond the cycle to protect and grow the business.”

Leadership for the future 

Peter Wilson said, “Over the last half we’ve taken the opportunity to reset our leadership team and refresh our Board. These changes will enable us to leverage deep industry and market knowledge across the Group and drive long term value.”

From 1 March 2025, Alan Wilson will step down from the Reece Board and become Chairman Emeritus, an honorary position to recognize his significant contribution over the last 50 years.  

Peter Wilson continued, “Dad will be stepping down as a board member to focus on what he does best - spending time in the network with our customers and people.”  

Alan was first appointed to the Board in 1969. He was General Manager from 1970 until to 1973, Managing Director from 1974 until 2008 and Executive Chair from 2001 – 2022. In his new role, Alan will continue to share his expertise by spending time in the network with our customers and mentoring our leaders.

For more detail on the HY25 results, head to the Investor Centre.