2025 was a rough year for the Aussie share market. Higher interest rates and weaker demand pushed many ASX shares lower, including several well-known names.
When a share price drops sharply, people begin to question the business and its outlook.
Here are 3 ASX shares that had a tough year and could be worth watching as we move into 2026.
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Reece Ltd (ASX: REH)
Reece shares struggled throughout 2025 as housing and construction activity slowed across Australia, New Zealand, and the United States. Higher interest rates reduced new building and renovation activity, putting pressure on sales and margins.
Recent results showed weaker earnings, which disappointed investors who had become used to steady growth. Brokers have also taken a more cautious view in the short term, pointing to uncertainty around when construction markets will recover.
Despite that, Reece remains a high-quality business with a strong distribution network and leading market position. The company has navigated housing cycles before, and when demand eventually stabilises, earnings should begin to recover.
If interest rates ease and building activity picks up, Reece shares could start to look much more attractive heading into 2026.
Treasury Wine Estates Ltd (ASX: TWE)
Treasury Wine Estates shares were among the worst performers on the ASX in 2025, falling more than 50% over the year. Weaker global wine demand, higher costs, and disappointing earnings all weighed on the share price.
Management has responded by cutting costs and resetting expectations. While near-term conditions remain challenging, several brokers believe much of the bad news is already priced into the share price.
There has also been renewed investor interest in the business, particularly given its portfolio of premium global wine brands. If demand improves in key markets or cost pressures ease, earnings could stabilise faster than expected.
There are risks, but the recent sell-off has made Treasury Wine's potential recovery more appealing than a year ago.
WiseTech Global Ltd (ASX: WTC)
WiseTech shares fell sharply in 2025 as global freight volumes normalised and investors pulled back from high-growth technology stocks.
Slower near-term growth and ongoing investment weighed on margins, which unsettled investors. However, the company remains the global leader in logistics software through its CargoWise platform.
Several brokers continue to see value at current levels, with price targets sitting well above the current share price. Those analysts argue that the market has become overly pessimistic about WiseTech's long-term growth potential.
If global trade activity improves and margins begin to recover, WiseTech could be well placed for a rebound into 2026.
Foolish takeaway
All 3 ASX shares have fallen more than 40% in 2025, but for different reasons.
Each has short-term challenges, but none of the businesses look fundamentally broken.
For investors willing to look beyond the near-term market noise, these sell-offs could create opportunities if conditions improve in 2026.
