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Reece Limited
Reece reveals a $250 million off-market share buyback to bolster investor confidence as it faces challenges in US construction and international expansion.
(AI video summary)
This video was created on 22 September 2025 for IG audiences by ausbiz.
ASX code: REH
Reece share buyback details
Chief Executive Officer (CEO) of Reece emphasizes a strong balance sheet behind the share buyback, showing optimism despite short-term challenges. Following a tough fiscal year (FY) 2025 with the United States (US) housing issues and slow recovery in Australia and New Zealand, Reece sets an $11 floor and a $13 ceiling for the buyback, aiming for $250 million up to a $400 million limit. Shareholders can apply until 17 October, with outcomes announced on 20 October.
Investment outlook
Analysts express concerns over Reece's current strategy. They highlight complications in overseas expansion and view the buyback as a defensive move following a challenging earnings call, suggesting it may indicate desperation.
Reece faces difficulty in the US construction sector with weak housing and high bond yields. Despite being a strong player in Australia, its global ventures show vulnerability and competitive struggles.
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