Reece announces $85 million on-market buyback target

Reece boosts its on-market share buyback by $50 million, taking the total target to $85 million.

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Key points

  • Reece Ltd has increased its share buyback target from $35 million to $85 million, funded by existing cash reserves and debt facilities, demonstrating a focus on capital management and shareholder value.
  • The buyback program, designed to adjust based on share price and market conditions, maintains Reece’s strong balance sheet and conservative leverage ratio, supporting future growth.
  • Despite a 44% decline in share price over the past year, Reece remains committed to efficient financial management and long-term growth, navigating current market dynamics.

Reece Ltd (ASX: REH) share price is in focus today after the company boosted its on-market share buyback target by $50 million, bringing the total to $85 million. The buyback reflects a disciplined approach to capital management and ongoing focus on delivering shareholder value.

What did Reece report?

  • Increased its on-market share buyback target from $35 million to $85 million
  • The buyback will be funded from existing cash reserves and debt facilities
  • The program commenced on 12 December 2025 and may run up to 12 months
  • Actual purchase amount and timing will depend on share price and market conditions
  • No change to Reece's balance sheet strength or conservative leverage ratio

What else do investors need to know?

Reece Group's decision to expand the buyback signals confidence in its financial position and outlook. The Board has emphasised that managing capital efficiently remains a top priority, supporting both future growth and shareholder returns.

The buyback is described as occurring in the ordinary course of ASX trading. Reece says the final number of shares repurchased and the timing will be adjusted as needed, based on ongoing market factors.

What did Reece management say?

Chairman and CEO Peter Wilson commented:

Further to the announcement of our on-market share buyback on 27 November 2025, the Board has approved an increase to the total target, now set at $85 million. This reflects our disciplined approach to capital management and ongoing commitment to delivering shareholder value. We continue to focus on maintaining a strong balance sheet with a conservative leverage ratio to fund future growth.

What's next for Reece?

The company plans to continue its buyback program over the coming year, watching market movements and its own capital needs. Maintaining a strong balance sheet and conservative leverage will underpin its ongoing investment and growth strategy.

Shareholders can expect Reece to remain focused on prudent financial management as it navigates changing market conditions. Management has reaffirmed the company's commitment to operational strength and long-term growth ambitions.

Reece share price snapshot

Over the past 12 months, Reece shares have declined 44%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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