Reece (REH) - Moving through the cyclical low
July 10, 2025
Reece supplies plumbing, bathroom, heating, ventilation, air-conditioning, waterworks, and refrigeration products to commercial and residential customers in Australia, the US and New Zealand. Reece was founded in 1919 and is based in Cremorne in Melbourne.
Challenging conditions persisted for Reece’s end-markets in 2H25, with FY25 EBIT expected to decline 18.5% to $553 million, falling short of Ord Minnett and market expectations by 5% and 6%, respectively. Volumes remain soft, with recent interest rate cuts yet to translate into improved activity, although we note Reece is a late cycle beneficiary of improved building activity.
In the US, where the company highlighted greater competition, Reece’s exposure to a weak new residential construction market continues to hurt performance. Despite the cyclical downturn in earnings, Reece continues to invest through the cycle, which should ensure the company benefits from an eventual uptick in building activity. Following share price weakness, we have upgraded to Buy from Accumulate, although our price target falls to$18.40 from $20.40.
Insights that count
Discover the best opportunities to outperform the market. Our research team dig deep into the market, company and stock data to bring you insights others might overlook.
Macquarie Group (MQG) – Balancing act
Macquarie Group provides diversified financial services in Australia, New Zealand the Americas, Europe, the Middle East, Africa, and Asia.

Newmont Corporation (NEM) – Shining star
Newmont Corp is the world’s largest gold miner, producing more than 5 million ounces a year from its operations and/or assets in the US, Australia, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Papua New Guinea, Ecuador, Fiji, and Ghana.

Regal Partners (RPL) – Going with the flow
Regal Partners is a fund manager that invests across Australian and international markets.
