Reece gave the market a pleasant surprise on Friday 30 October. The plumbing, waterworks and HVAC-R supplies group reported first-quarter sales growth led by its Australian and New Zealand business, and its shares closed 8.44% higher at $17.09, according to The Bull.

The quarter

  • Group sales: $2.51 billion for the September quarter, up 4.3% on a reported basis and 8.7% in constant currency.
  • Australia and New Zealand: sales up 12.8%, driven by volumes and what the company called a mid-single-digit contribution from inflation.
  • United States: sales up 5.6%, driven by network expansion and low single-digit inflation, with like-for-like sales up 2.4%.

“Looking ahead, we’re expecting a strong first half for ANZ and a continuation of the challenging environment in the US,” chair and chief executive Peter Wilson said, according to Capital Brief. “Given the complexity of the current macro environment, we remain cautious in the second half of FY27.” The company said subdued residential new construction continues to weigh on its US business.

A reversal after a downgrade

Market Matters noted the rally came after Citi downgraded Reece to Sell earlier in the week with a $16.10 price target, amid concern about weak US housing activity. The shares moved back towards their 52-week high of $17.63.

Reece told its AGM that it generated $9.4 billion of sales revenue in the 2026 financial year, up 4.5%, while US conditions remained difficult. It now has 292 US branches across the Sunbelt.

A message on pay

Shareholders backed every director, but the remuneration report drew 34.35% of votes against, according to the company’s poll results as reported by Kalkine, which counts as a strike under the Corporations Act. An advisory vote on the company’s 2030 remuneration framework drew 34.31% against. The Wilson family holds more than 70% of the company and was excluded from voting on the remuneration report.

Why it matters beyond Reece

Reece’s local numbers are a useful read on the building and renovation pipeline, because trades buy their supplies from it as work proceeds. Growth of 12.8%, with inflation contributing a mid-single-digit share, fits with this week’s producer price data showing construction costs still rising. For trade businesses, it suggests work is still flowing even as interest rates climb.

Sources: Capital Brief (30 October 2026); The Bull (30 October 2026); Market Matters (30 October 2026); Kalkine (30 October 2026); Reece 2026 AGM addresses.