Reece delivered 4.3% sales growth in the first quarter of FY27, powered by a 12.8% increase across Australia and New Zealand. The US remained subdued, while management flagged a cautious view of the second half.
- Q1 sales revenue rose 4.3% to A$2.510 billion
- ANZ sales increased 12.8% on volume momentum and inflation
- US sales rose 5.6%, with like-for-like growth of 2.4%
- Management expects a strong first half in ANZ
- Second-half FY27 outlook remains cautious
ANZ supplies the quarter’s main growth engine
Reece Limited (ASX:REH) opened FY27 with A$2.510 billion in sales revenue, a 4.3% increase on the first quarter of FY26. On a constant-currency basis, which removes the effect of movements in the AUD/USD exchange rate, growth was 8.7%.
Australia and New Zealand did most of the heavy lifting. Sales in the region rose 12.8%, reflecting continued volume momentum and a mid-single-digit contribution from inflation. That extends the company’s FY26 revenue result, when ANZ growth helped offset weakness in the US.
US sales grow as residential construction stays weak
The US delivered a more measured result, with sales up 5.6%. Reece attributed the increase to network expansion and low-single-digit inflation, while like-for-like sales increased 2.4%.
That reported growth came against what management described as a subdued residential new-construction market, which continues to weigh on the US business. The distinction matters: network expansion is supporting total sales, but the underlying performance of existing operations remains considerably less brisk than the ANZ result.
Strong first-half ANZ view meets second-half caution
Chairman and CEO Peter Wilson said Reece expects a strong first half for ANZ, while anticipating a continuation of the challenging US environment. The company also remains cautious on the second half of FY27 because of the complexity of the macroeconomic environment.
The update reports sales only, and the figures are derived from unaudited accounting records. It provides no quarterly profit, margin or cash-flow measure, so the sales momentum cannot by itself establish how earnings are tracking. The next material test will be whether ANZ volumes remain resilient after the first-half pipeline runs through, and whether US like-for-like growth can improve without relying on further branch expansion.
Bottom Line?
Reece has started FY27 with a clear regional split: strong ANZ momentum, modest US growth and a more uncertain second half.
Questions in the middle?
- Can ANZ volume growth remain strong once the existing activity pipeline normalises?
- Will the subdued US residential market continue to constrain like-for-like sales?
- How will the cautious second-half outlook translate into margins and earnings when reported?