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Australia's Reece set for worst day ever on bleak full-year outlook

Australia's Reece set for worst day ever on bleak full-year outlook

Yahoo27-06-2025
(Reuters) -Shares of Reece tumbled on Friday after the plumbing product supplier projected lower annual earnings, citing persistent housing market headwinds and intensifying competition in the U.S.
The stock was set for its worst day on record, slumping 14.1% to A$14.910 by 0332 GMT, and was also the worst performer on the benchmark S&P/ASX 200 index .
The company expects earnings before interest and tax (EBIT) for fiscal year 2025 to be in the range of A$548 million to A$558 million ($359 million to $365.6 million), down from A$681 million it reported last year.
The broader construction and building supplies sector continues to grapple with persistent macroeconomic headwinds, softer demand and a slump in residential construction activity.
"We have not seen a material improvement in trading conditions in the second half. In Australia and New Zealand, volume settings remain soft and (the) recent interest rate cuts have not yet translated to improved housing activity," CEO Peter Wilson said.
Moreover, increased competition in all segments across the U.S., driven by new market entrants and a slowdown in residential construction, has impacted profitability, Wilson added.
($1 = A$1.5265)
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