Ferguson Lifts Full-Year Outlook on Strong Q2 Beat; FloWorks Deal on Track

summarizeSummary

Ferguson posted Q2 earnings above expectations, raised its full-year guidance, and confirmed the FloWorks acquisition remains on pace to close in Q3. The company returned $202M to shareholders through buybacks and declared a $0.89 dividend.

check_boxKey Events · Earnings and Guidance · FERG

• Q2 Earnings Beat

  Driven by non-residential strength and a return to residential growth, sales rose 4.6% to $8.8B, and adjusted diluted EPS of $3.39 exceeded expectations.

• Full-Year Guidance Raised

  Management lifted the net sales growth outlook to mid-single digits (from low-to-mid) and tightened adjusted operating margin guidance to 9.5%-9.8% (from 9.4%-9.8%).

• FloWorks Acquisition Progressing

  The $1.6B acquisition of FloWorks, a leading industrial valve distributor, is expected to close in Q3 2026, adding roughly $1.4B in annualized revenue from eight deals year-to-date.

• Capital Returns Continue

  During Q2, the company repurchased $202M of shares and declared a quarterly dividend of $0.89 per share, payable October 7, 2026.

auto_awesomeAnalysis · FERG · Trade & Services

A solid quarter pushed sales up 4.6% to $8.8 billion, with adjusted EPS of $3.39 topping expectations. Confidence in the trajectory prompted management to raise the full-year sales growth view to mid-single digits and tighten the adjusted operating margin range upward, even against an uncertain macro backdrop. The period also featured five bolt-on acquisitions and a definitive agreement for the $1.6 billion FloWorks deal—set to close in Q3 and meaningfully broaden the company's industrial valve and flow control footprint. Shareholders benefited from $202 million in buybacks and a $0.89 dividend, highlighting robust capital returns. With net leverage at a comfortable 1.3x, ample capacity remains to fund the FloWorks acquisition while continuing the buyback program.