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Reece Ltd ASX:REH

2 opened or increased2 held0 reduced or exitedlatest position by manager, past 12 months90 days: 0 increased, 0 reduced. 5 managers in total.

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20252026

8 Sep 2025 to today

Commentary Showing 2 of 13

DateManagerActionSummary

31 Aug 2026Pendal GroupHeldPendal Group continues to hold Reece because the manager notes the plumbing supplies distributor underperformed following its FY26 result as initial FY27 guidance came in softer than expected. Pendal highlights that in the US, Reece anticipates only modest revenue growth due to a weak market environment, whereas consensus expected stronger growth from pass-through of plumbing supplies inflation. The manager notes the Australian business grew double digits in the second half but flagged expectations that lead indicators would roll over in line with deteriorating house prices, creating risk that a US recovery could coincide with Australian market weakness.

Newsletter, price recorded $16.83

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13 Jul 2026Pendal GroupHeldPendal Group notes that subdued US housing data, including flat mortgage applications with 30-year rates around 6.6% and existing home sales falling from 4.19 million in May to 4.09 million in June, points to a modest drag on US residential investment. The manager identifies affordability rather than supply as the key constraint on the housing market, framing this as a headwind for housing-related building products exposure such as plumbing and building supplies distributor Reece. Pendal's commentary reflects a cautious macro view on the near-term demand backdrop facing Reece's US distribution operations tied to residential construction activity.

Newsletter, price recorded $15.62

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11 more comments on REHPro shows every comment, with a link to each source document.

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First mention by manager

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Price at first mentionThe share price recorded when each of 5 managers first commented on REH.

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Articles

31 Aug 2026Reece Group's Branch Expansion Meets Softer FY27 US Guidance
13 Jul 2026Reece REH Fund Manager Commentary and Investment Thesis

About Reece Ltd

Industrials, Trading Companies and Distributors

Reece (ASX:REH), the plumbing and HVAC distributor, has struggled with weak US housing conditions. In August 2026, Pendal Group reported Reece underperformed after FY26 results, as initial FY27 guidance was softer than expected, with only modest US revenue growth anticipated. Pendal also noted subdued US housing data, with flat mortgage applications and falling existing home sales. Allan Gray believes building-cycle-exposed companies like Reece may offer considerable value after weak share price performance, and Auscap has increased its exposure to the founder-led business. Reece operates in the Industrials sector within the Trading Companies and Distributors industry, and Thesis Tracker has captured 13 comments from 5 fund managers, including Pendal Group, Allan Gray and Auscap. Founded in 1920 and headquartered in Melbourne, Reece distributes plumbing, heating, air-conditioning, waterworks and refrigeration products to trade customers across Australia, New Zealand and the United States through its MORSCO business.

Market cap: $10.4b
Price to earnings: 34.2x
Return on equity: 7.9%
Dividend yield: 1.1%
Price to book: 2.78x
Net margin: 3.3%
52-week range: $10.45 to $17.63

Company figures as of 15 Oct 2026. For information only.

Questions

Who is investing in Reece Ltd (ASX:REH)?

Fund managers including Blackwattle Investment Partners, Selector Funds Management, Auscap Asset Management, Allan Gray and Pendal Group have invested in Reece Ltd (ASX:REH).

What opportunities or catalysts do fund managers highlight for Reece Ltd?

Allan Gray and Auscap see value in a founder-led business after weak share price performance, positioning for a recovery in the building cycle.

What are the key risks to the Reece Ltd investment thesis, according to fund managers?

Pendal highlights soft FY27 guidance with modest US revenue growth and weak US housing indicators, including flat mortgage applications and declining home sales.

What does Reece Ltd (ASX:REH) do?

Reece Ltd. is a leading provider of plumbing, heating, air-conditioning, waterworks, and refrigeration solutions for trade, commercial, and retail markets. Founded in 1920 and headquartered in Cremorne, Australia, the company provides essential infrastructure products and services across two primary geographical segments: Australia/New Zealand and the United States.

General information only. Thesis Tracker reports what named fund managers have published about ASX companies. It does not take into account your objectives, financial situation or needs, and is not financial product advice or a recommendation to buy, sell or hold any security.

11,356 comments from 164 managers on 761 companies, snapshot 15 Oct 2026.

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