Investors in plumbing and industrial supplies group Reece Ltd (ASX: REH) have faced a rough ride so far this year.

And today's trading has only added to the woes.

Shares in the ASX 200 industrials stock are changing hands at $11.93 each at the time of writing, marking a 15% drop from Friday's close.

The sell-off dragged the stock to fresh 52-week lows during the session, with the share price now sitting nearly 50% below its January levels.

That's a stark contrast to the All Ordinaries Index (ASX: XAO), which has risen by 10% since the start of the year.

So, what's behind today's sharp fall?

It appears that Reece's FY25 results from this morning fell flat with investors.

Here, a challenging operating environment stalled revenue growth and sent profits sliding.

Let's unpack the numbers in more detail to see how the year unfolded for this ASX 200 industrials stock.

ASX 200 industrials stock FY25 snapshot

Reece has grown into a leading supplier of plumbing, waterworks, and HVAC-R products since inception more than a century ago.

Today, the company operates over 900 branches across Australia, New Zealand, and the US, serving both commercial and residential customers.

But FY25 proved to be a difficult year for the ASX 200 industrials stock.

Revenue of $8.98 billion dipped by 1% from the previous year.

Operating earnings (EBITDA) of $901 million fell by 11%, with net profit after tax (NPAT) of $317 million slipping by 24%.

Earnings per share (EPS) also dropped by 24% to 49 cents per share.

And the total FY25 dividend of 18.36 cents per share was 29% lower.

Regional overview

Management attributed Reece's weaker FY25 results to subdued demand for its products across both operating regions.

In Australia and New Zealand (ANZ), revenue of $3.88 billion grew by 1% but EBITDA of $495 million dropped by 12%.

That said, Reece expanded its footprint in the ANZ region.

It added 15 net new branches during the year to grow its ANZ network to 676 branches in total.

In the US, revenue of US$3.30 billion dipped by 5%, with EBITDA of US$263 million also falling by 10%.

Management cited the competitive nature of the US market for this muted outcome, characterised by a slowdown in new residential construction.

Nevertheless, the company grew its presence in the region after adding 24 net new branches.

It finished the year with 267 branches across the US.

What next for this ASX 200 industrials stock?

Moving forward, the group's FY26 outlook remains subdued with management anticipating a slow recovery in the housing market.

Reece chairman and chief executive officer, Peter Wilson, said:

Looking ahead we anticipate a slow recovery in ANZ with a period of soft activity still to play out. In the US, we expect the housing market to be constrained for the next 12-18 months driven by persistently high mortgage rates and affordability challenges.

However, the ASX 200 industrials stock took a more optimistic tone for its longer-term prospects.

Here, management highlighted the growing need for infrastructure investments across both its operating regions.

It believes that population growth and an undersupply of housing will help drive demand for the group's products in future years.