Losing the Reece way
Peter Wilson's wobbly doomsaying raises serious questions about his suitability.
Is Reece's (hereditary) executive chairman Peter Wilson cracking up?
Last week, the plumbing supplies giant unveiled a full-year results bloodbath, consigning itself to the investor dog house with other former market darlings CSL, Domino's, James Hardie and Woolworths.
On the company's spectacular results call – described by the Australian Financial Review's Chanticleer column as '"like few others we can remember'" – Wilson gave the distinct impression of being on the verge of tears. It was the closest thing I've seen to Andrew Forrest's overwrought performance at Perth's Boao Forum in August 2023 where, voice breaking, Twiggy foresaw us all imminently boiling alive.[[Of course, the market is no longer wondering if Forrest is cracking up. That's now just a given.]]
Things aren't quite that bad at Reece Group, though its golden run is most assuredly over. The mature Australia-New Zealand business reported its lowest EBIT margins in more than 20 years while earnings at its US business – under competitive siege – declined by 30 per cent. Wilson admitted that 2026 would be no better.