Revenue distribution by industry:

• Sanitary supplies: 45%
• Air conditioning and heating: 30%
• Building and renovation supplies: 25%

TOP 3 markets:

• Australia: 60%
• New Zealand: 20%
• USA: 15%

Reece Limited, a leading company in the sanitary and air conditioning products sector, generates the majority of its revenue from the sanitary industry. The Australian market remains the dominant market for the company, followed by New Zealand and the USA. These markets are crucial for the growth and strategic direction of Reece Limited, especially through the increased expansion in the USA in recent years.

Production Sites: Australia, New Zealand, USA

Reece Limited, a leading provider of plumbing, heating, and air conditioning solutions, mainly produces its products in Australia, New Zealand, and the USA. This geographical distribution enables the company to efficiently serve its markets while benefiting from regional advantages.

By strategically locating its production facilities, Reece Limited can optimize supply chains and reduce response times to customer demands. This helps the company strengthen its market position in the respective regions.

Growth Strategy of Reece Limited:

1. International Expansion: Reece Limited focuses on entering new markets, especially in the USA and New Zealand. These markets offer potential for significant growth through the introduction of their proven business models.

2. Digitalization: The company is heavily investing in digital platforms and technologies to enhance customer service and increase supply chain efficiency. This includes expanding e-commerce capabilities.

3. Sustainability: Reece is placing increased emphasis on sustainable practices and products to meet the growing demands of customers and regulatory authorities. This includes introducing environmentally friendly products and reducing the carbon footprint.

4. Product Diversification: By expanding their product offerings, Reece aims to reach new customer segments and deepen existing customer relationships.

These strategies are intended to help Reece Limited strengthen its market position and ensure long-term growth.

Main materials: Copper, plastic, steel
Main importing countries: China, USA, Germany

Reece Limited, a leading company in the field of sanitary and heating products, imports a variety of raw materials and materials necessary for the production and distribution of their products. Copper is often used for pipes and fittings and is mainly imported from countries such as the USA and China. Plastic, another essential component for many sanitary products, is also sourced in large quantities from China.

Steel, which is needed for the production of robust sanitary solutions, is often imported from Germany, known for its high-quality steel products. These import strategies enable Reece Limited to offer high-quality products while optimizing costs by sourcing from countries with competitive prices.

Market share: 22% in the Australian market (2024) EBITDA margin: 11.5% (2024) Return on Equity (ROE): 18% (2024)

Reece Limited has a significant competitive advantage in the Australian market, especially in the area of ​​sanitary and air conditioning solutions. With a market share of 22%, the company is a leading player in the industry.

The EBITDA margin of 11.5% shows that Reece operates efficiently and is able to generate solid profits from its revenues. A Return on Equity of 18% indicates that the company effectively uses capital to generate returns for its shareholders.

In addition, Reece benefits from strong brand awareness and an extensive distribution network that further strengthens its competitive position. Continuous investment in technology and innovation also helps to secure and expand the competitive advantage.

Institutional Investor Share: approximately 60% (estimated, based on historical data and market trends until 2023)

Insider Buys/Sells: No specific data available for 2025

The institutional investor share in Reece Limited traditionally stands at around 60%, indicating a strong trust from institutional investors in the company. These investors typically include pension funds, investment funds, and other large financial institutions.

Insider buys or sells are important indicators of management's confidence in the company's future performance. Since there is no specific data available for 2025, it is advisable to consult the latest reports from the Australian Securities Exchange (ASX) or company disclosures to obtain current information.

Market share of Reece Limited: 22% (2025, estimated)

Main competitors and their market shares:

1. Ferguson plc: 18%
2. Reliance Worldwide Corporation: 15%
3. Tradelink: 12%
4. Bunnings Warehouse: 10%
5. Rehau Group: 8%

Moat of Reece Limited:

Reece Limited has a significant moat, mainly based on its strong brand recognition, wide distribution network, and long-standing customer relationships. The company benefits from an established market presence in Australia and New Zealand and has been advancing its international expansion in recent years, especially in the USA.

Compared to its competitors, Reece Limited has the advantage of being one of the largest providers in the region, enabling economies of scale. This helps the company to offer competitive prices while maintaining margins.

However, some competitors, such as Ferguson plc, also have strong market positions and international presence, giving them a similar moat. Ferguson benefits from a diversified product range and a strong network in Europe and North America.

Overall, Reece Limited has a strong moat, but the competition is intense, and some competitors also have significant advantages, especially in terms of international reach and product diversification.

Revenue Growth: 8% (2024) Profit Growth: 6% (2024) Market Share in Australia: 25% (2024)

Reece Limited achieved a revenue growth of 8% in 2024, attributed to strong demand in the construction sector and effective expansion into international markets. The 6% profit growth indicates that the company remains profitable despite increased operating costs.

The company holds a significant market share of 25% in Australia, highlighting its strong market position. This position allows Reece Limited to benefit from ongoing construction activity and renovation projects domestically.

Furthermore, Reece is investing in digital transformation and efficiency improvements, which could lead to long-term cost savings and improved margins. These strategic initiatives could further strengthen the company in the coming years.

Overall, Reece Limited demonstrates solid fundamental data and strategic initiatives pointing to stable growth potential. However, investors should also monitor external factors such as economic conditions and commodity prices that can influence the construction sector.

Dividend Yield: 1.8% (estimated for 2025)
Dividend History: Continuous payout over the last 5 years

Reece Limited has regularly distributed dividends to its shareholders in recent years. The dividend yield for the year 2025 is estimated to be around 1.8%, based on current market conditions and the company's financial performance.

The reliability of dividend payment by Reece Limited is supported by its stable business development and solid financial foundation. The company has been paying dividends continuously over the past five years, indicating strong profitability and a sustainable business model. Analysts expect that Reece Limited will also be able to maintain dividends at a similar level in the coming years, provided there are no unexpected economic challenges.