Ferguson (FERG) quarter year Financial Results Summary
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Ferguson (FERG) Q1 2025 Financial Results Summary
Released on December 9, 2025, Ferguson Enterprises Inc. has reported its financial results for the quarter ended October 31, 2025. The summary outlines various key performance metrics and updates regarding the company’s operations in a challenging market environment.
Financial Highlights:
- Sales: $8.2 billion, an increase of 5.1% compared to the same quarter in 2024.
- Gross Margin: 30.7%, representing an increase of 60 basis points from the prior year.
- Operating Margin:
- Reported: 9.4%, increased by 80 basis points.
- Adjusted: 9.9%, also up by 80 basis points year-on-year.
- Earnings Per Share (EPS):
- Diluted: $2.90 per share, up 23.9% from $2.34 in the same quarter last year.
- Adjusted EPS: $2.84 per share, which reflects a 15.9% increase from $2.45.
- Dividends: Declared a quarterly dividend of $0.89, marking a 7% increase over the prior year.
- Share Repurchases: Completed share repurchases totaling $208 million during the quarter.
- Net Debt to Adjusted EBITDA: Remains strong at 1.1x.
Operational Insights:
- Growth Drivers:
- Sales growth was fueled by:
- Organic Revenue Growth: 4.2%.
- Acquisition Growth: 1.0%.
- However, this was partially offset by a 0.1% decline due to adverse foreign exchange impacts and a divestment in Canada.
- Price inflation was approximately 3% during the quarter.
Segment Performance:
- US Performance:
- Net Sales: Increased by 5.3%, supported by:
- Organic Revenue Growth: 4.4%.
- Acquisition Contribution: 0.9%.
-
The US residential market faced challenges with revenue down 1%, contrasted by a 12% increase in the non-residential segment.
-
Canada Performance:
- Net Sales: Increased by 2.2%, driven by:
- Organic Growth: 0.7%.
- Acquisition Contribution: 4.6%.
- A decline in net sales was affected by 1.6% due to foreign exchange, and 1.5% from the divestment of a non-core business.
- Adjusted operating profit was $16 million, down $7 million from last year.
Strategic Initiatives:
- Acquired Moore Supply Company, adding to Ferguson’s HVAC equipment and supplies portfolio.
- Continued focus on consolidating market positions, enhancing growth investments, and driving shareholder returns through the execution of strong operational strategies.
Future Outlook:
- Calendar Year 2025 Guidance:
- Updated net sales expected to grow by ~5%.
- Adjusted operating margin projected between 9.4% – 9.6%.
- Anticipated interest expenses around $190 million.
- Planned capital expenditures approximate $350 million.
- Maintained an adjusted effective tax rate of ~26%.
Financial Position:
- As of the reporting date, Ferguson’s balance sheet remains robust with a net debt to adjusted EBITDA ratio of 1.1x.
- The company has $0.8 billion remaining under its current share repurchase program.
Conclusion:
Ferguson’s solid performance in Q1 2025 demonstrates resilience and effective execution amidst market challenges, providing confidence in continued growth and operational strategy moving forward. The quarterly dividend increase and significant share repurchases further highlight the company’s commitment to returning capital to shareholders while maintaining a strong financial foundation.
| 2025 | 2024 | |
|---|---|---|
| Net sales | $8,169 | $7,772 |
| Cost of sales | -5,663 | -5,432 |
| Gross profit | 2,506 | 2,340 |
| Selling, general and administrative expenses | -1,641 | -1,585 |
| Depreciation and amortization | -94 | -90 |
| Operating profit | 771 | 665 |
| Interest expense, net | -46 | -46 |
| Other (expense) income, net | -13 | 5 |
| Income before income taxes | 712 | 624 |
| Provision for income taxes | -142 | -154 |
| Net income | $570 | $470 |
| Earnings per share – Basic | $2.91 | $2.34 |
| Earnings per share – Diluted | $2.90 | $2.34 |
| Weighted average number of shares outstanding: | ||
| Basic | 196.2 | 200.8 |
| Diluted | 196.6 | 201.3 |
| October 31, 2025 | July 31, 2025 | |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | $526 | $674 |
| Accounts receivable, net | 3,807 | 3,964 |
| Inventories | 4,613 | 4,492 |
| Prepaid and other current assets | 1,025 | 945 |
| Assets held for sale | 56 | 71 |
| Total current assets | 10,027 | 10,146 |
| Property, plant and equipment, net | 1,886 | 1,846 |
| Operating lease right-of-use assets | 1,841 | 1,763 |
| Deferred income taxes, net | 136 | 225 |
| Goodwill | 2,464 | 2,464 |
| Other non-current assets | 1,340 | 1,285 |
| Total assets | $17,694 | $17,729 |
| Liabilities and stockholders’ equity | ||
| Accounts payable | $3,468 | $3,577 |
| Other current liabilities | 1,871 | 2,451 |
| Total current liabilities | 5,339 | 6,028 |
| Long-term debt | 4,124 | 3,752 |
| Long-term portion of operating lease liabilities | 1,434 | 1,367 |
| Other long-term liabilities | 741 | 750 |
| Total liabilities | 11,638 | 11,897 |
| Total stockholders’ equity | 6,056 | 5,832 |
| Total liabilities and stockholders’ equity | $17,694 | $17,729 |