Ferguson Reports Strong Q1 Results, Authorizes New $2B Share Buyback, and Reviews LSE Listing

summarizeSummary

Ferguson Enterprises reported strong Q1 results, including a 9.1% increase in adjusted EPS, and authorized a new $2 billion share repurchase program. The company also continues its M&A strategy and is reviewing its London Stock Exchange listing.

check_boxKey Events

• Strong Q1 Financial Performance

  Ferguson reported Q1 net sales of $7.5 billion, up 3.6%, and adjusted diluted earnings per share of $2.28, an increase of 9.1% year-over-year. Adjusted operating margin improved by 40 basis points to 8.7%.

• New $2 Billion Share Repurchase Program Authorized

  The Board authorized a new share repurchase program of up to $2.0 billion, replacing the existing program. The company repurchased $236 million in shares during the quarter.

• Active M&A Strategy Continues

  Ferguson completed two acquisitions during the quarter, one subsequent to quarter-end, and signed definitive purchase agreements for three additional acquisitions. These six acquisitions have an aggregate annualized revenue impact of approximately $350 million.

• Full-Year Guidance Unchanged

  The company reiterated its calendar 2026 guidance, projecting low to mid-single digit net sales growth and an adjusted operating margin of 9.4% - 9.8%.

auto_awesomeAnalysis

Ferguson Enterprises reported solid first-quarter financial results, with adjusted diluted earnings per share increasing by 9.1% and net sales up 3.6%. The company also announced a significant new $2 billion share repurchase authorization, replacing its existing program, demonstrating a strong commitment to returning capital to shareholders. This capital return initiative is particularly notable as the stock is currently trading near its 52-week high, suggesting management confidence in the company's valuation. Furthermore, Ferguson continues its active M&A strategy, having completed two acquisitions and signed definitive agreements for three more, with an aggregate annualized revenue impact of approximately $350 million. While full-year guidance remains unchanged, the combination of strong operational performance, substantial capital return, and ongoing strategic acquisitions makes this a very important filing for investors. The company also disclosed a review of its London Stock Exchange secondary listing, which could lead to its cancellation, a strategic move that may impact liquidity for some investors.