Ferguson Reports Strong Calendar 2025 Financial Results and Issues Positive 2026 Guidance

summarizeSummary

Ferguson Enterprises Inc. delivered robust financial performance for calendar year 2025, marked by solid sales growth, significant adjusted EPS expansion, and improved operating margins. The company's ability to achieve double-digit non-residential growth helped offset a challenging residential market. Strong cash generation supported strategic acquisitions and substantial share repurchases, demonstrating effective capital allocation. The positive outlook for 2026, with projected low to mid-single digit sales growth and stable operating margins, suggests continued operational strength and market outperformance. Investors should note the company's successful navigation of mixed market conditions and its commitment to returning capital to shareholders.

check_boxKey Events

• Strong Calendar 2025 Performance

  Full calendar year sales increased 5.0% to $31.3 billion, with adjusted diluted earnings per share (EPS) rising 13.4% to $10.58.

• Margin Expansion Achieved

  Gross margin improved by 70 basis points to 31.0%, and adjusted operating margin expanded by 50 basis points to 9.6%.

• Robust Cash Generation and Capital Allocation

  The company generated $2.2 billion in operating cash flow, invested $276 million in eight acquisitions, and repurchased $0.9 billion in shares, with $0.6 billion remaining under the current program.

• Positive 2026 Guidance Issued

  For calendar year 2026, Ferguson forecasts low to mid-single digit net sales growth and an adjusted operating margin between 9.4% and 9.8%.

auto_awesomeAnalysis

Ferguson Enterprises Inc. delivered robust financial performance for calendar year 2025, marked by solid sales growth, significant adjusted EPS expansion, and improved operating margins. The company's ability to achieve double-digit non-residential growth helped offset a challenging residential market. Strong cash generation supported strategic acquisitions and substantial share repurchases, demonstrating effective capital allocation. The positive outlook for 2026, with projected low to mid-single digit sales growth and stable operating margins, suggests continued operational strength and market outperformance. Investors should note the company's successful navigation of mixed market conditions and its commitment to returning capital to shareholders.