Ferguson Reports Strong Calendar 2025 Financial Results and Issues Positive 2026 Guidance
FERG sits 69% above its 52-week low of $146.
Summary
Ferguson Enterprises Inc. announced robust financial results for calendar year 2025, with significant growth in sales, operating profit, and diluted EPS, alongside positive guidance for 2026.
Key Events · Earnings and Guidance · FERG
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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.
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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%.
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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.
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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%.
Analysis · FERG · Trade & Services
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.
At the time of this filing, FERG was trading at $246.83 on NYSE in the Trade & Services sector, with a market capitalization of approximately $49.1B. The 52-week trading range was $146.00 to $271.64. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.