Reece shares surge despite lower 1H profit, dividend
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More news: Plumbing supplies distributor Reece was the top performer on the ASX 200 despite reporting a slide in first-half profit and cutting its interim dividend.
Reece shares were up 14.9% to $16.01 at 12:20pm AEDT, trimming losses of around 27% over the last 12 months.
Reece posts 20% decrease in HY net profit to $144m amid challenging market conditions
The news: Reece reported a 20% decrease in half-year statutory net profit after tax to $144 million, down from $181 million a year ago, citing challenging housing market conditions affecting demand.
The numbers: Sales revenue rose 6% to $4.6 billion, from $4.4 billion in the prior corresponding period, driven by network expansions.
Earnings before interest and tax fell 14% to $262 million.
The company declared a fully franked interim dividend of 5.44 cents per share, lower than 6.50 cents the prior year.
The context: Reece CEO Peter Wilson said the half-year results were driven by subdued housing markets, which weighed on demand and resulted in flat sales.
He said while there are signs of recovery in the Australian and New Zealand markets, the US market is more heavily affected by cost pressures.
The company remains cautious and does not expect a material shift in demand for the remainder of FY26, forecasting full-year EBIT to be within its target range of $520 million to $540 million.
The source: ASX
