Q1 FY27 highlights: Reece lifts sales revenue to A$2,510 million
In its Q1 FY27 trading update covering July to September 2026, Reece Limited delivered sales revenue of A$2,510 million, up 4.3% on the same period last year.
On a constant currency basis, sales rose 8.7%. Constant currency applies the average 1Q26 AUD/USD foreign exchange rate to current period sales, removing the foreign exchange impact when comparing against the previous corresponding period.
The gap between the reported and constant currency figures points to stronger underlying momentum than the headline number alone. The trading update metrics are derived from unaudited accounting records of the Group.
Headline figures for the quarter:
- Group sales revenue: A$2,510 million
- Reported growth: 4.3% on the prior corresponding period
- Constant currency growth: 8.7%
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Regional performance: ANZ strength offsets a soft US
The two regions moved at different speeds during the quarter. ANZ led, while the US grew more modestly.
ANZ sales up 12.8%
ANZ sales were up 12.8%, driven by continued momentum in volumes and a mid single digit contribution from inflation. Management said the existing pipeline of activity supported ongoing momentum in the region.
US sales up 5.6%
US sales were up 5.6%, driven by network expansion and low single digit inflation. Like for like sales increased 2.4%.
Management said the subdued residential new construction market continued to impact the business. Network expansion is carrying US growth, while like for like sales remain modest.
| Region | Sales growth | Key drivers |
|---|---|---|
| ANZ | 12.8% | Continued momentum in volumes; mid single digit contribution from inflation |
| US | 5.6% (like for like 2.4%) | Network expansion; low single digit inflation |
Peter Wilson, Chairman & CEO
“We have seen a strong Q1 in ANZ as the existing pipeline of activity supported ongoing momentum in the region. The US has remained soft, with the subdued residential new construction market continuing to impact our business.”
How constant currency growth shows underlying performance
Reece reports in Australian dollars but earns a large share of its sales in US dollars, so exchange rate moves can distort comparisons between periods. Constant currency growth strips out that effect, allowing investors to compare like with like.
For Q1 FY27, reported growth of 4.3% compares with 8.7% in constant currency terms.
Outlook: strong ANZ first half, caution on the second half
Peter Wilson said Reece takes a long term view, “with a clear plan to deliver our 2030 vision and build a successful business in the US.”
Management’s long term US ambitions have been accompanied by board renewal, with the appointment of former Treasury Wine Estates chief Tim Ford as Lead Independent Director bringing global operations and supply chain experience to the oversight of that expansion.
Management’s outlook points:
- ANZ: a strong first half is expected.
- US: a continuation of the challenging environment is expected.
- Second half of FY27: management remains cautious.
Peter Wilson, Chairman & CEO
“Given the complexity of the current macro economic environment we remain cautious on the second half of FY27.”
Reece Group is a distributor of plumbing, waterworks and HVAC-R products to commercial and residential customers through ~1000 branches in Australia, New Zealand and the United States (ASX: REH).
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