Reece Projects Lower Earnings Amid Housing Market Slowdown

Australia: Reece Limited has issued its trading update for the financial year 2025, reporting continued pressures across its key markets of Australia, New Zealand, and the United States. The company has forecast its Group EBIT to range between AUD 548 million and AUD 558 million (USD 366 million to USD 373 million), attributing the outlook to subdued housing activity and macroeconomic headwinds. In the US, the company’s high exposure to new residential construction and growing market competition have affected profitability. 

In Australia and New Zealand, recent interest rate reductions have not yet resulted in increased housing market activity. The company noted that underlying sales volumes remain soft across the board. Despite the current conditions, Reece stated that it maintains confidence in its long-term strategy and continues to monitor market developments. 

Source: Tip Ranks