REG-Ferguson Enterprises Inc. Ferguson Reports Strong Calendar 2025 Results and Issues 2026 Guidance
24/02/2026 11:45
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Ferguson Reports Strong Calendar 2025 Results and Issues 2026 Guidance
Full calendar year highlights
* Sales were $31.3 billion, an increase of 5.0%, with continued market share
gains.
* Gross margin of 31.0% was 70 bps ahead of last year.
* Operating margin of 8.9%, up 40 bps on prior year (9.6%, up 50 bps on an
adjusted basis).
* Diluted earnings per share of $10.16, up 24.2% ($10.58, up 13.4% on an
adjusted basis).
* Strong cash generation with $2.2 billion in operating cash flow.
* Declared dividends of $3.38 per share.
* Invested $276 million in eight acquisitions, generating annualized revenue in
excess of $300 million.
* Share repurchases of $0.9 billion during the year with an outstanding balance
of approximately $0.6 billion remaining under the current share repurchase
program at December 31, 2025.
* Balance sheet remains strong with net debt to adjusted EBITDA of 1.1x.
Ferguson Enterprises Inc. (NYSE: FERG; LSE: FERG). As previously announced,
the Company changed its fiscal year from ending July 31 of each year to ending
December 31 of each year. There was a five-month transition period (August 1,
2025 to December 31, 2025) and these results are presented within the
condensed consolidated financial statements. The Company’s current fiscal
year commenced on January 1, 2026. Full calendar year as well as calendar 2025
fourth quarter results are presented below.
Kevin Murphy, Ferguson CEO, commented “Our associates delivered a strong
year, continuing to provide essential water and air solutions for our
customers. We are particularly pleased with double digit non-residential
growth during the year and our continued performance against a challenging
residential market. Our scale-advantaged business model and strong balance
sheet enable us to invest in organic growth, consolidate our markets through
acquisitions and return capital to shareholders.
“While our markets remain mixed as we enter 2026, we expect another year of
outperformance, strong operational execution and continued investment to
expand our market leading capabilities and scale. We are confident in our
ability to capitalize on long-term growth drivers across both residential and
non-residential markets as we provide essential water and air solutions for
the complex project needs of the specialized professional.”
Calendar 2026 Guidance
Calendar 2026 Guidance
January 1 - December 31, 2026
Net sales Low to mid-single digit growth
Adjusted operating margin* 9.4% - 9.8%
Interest expense ~$200 million
Capital expenditures $350 - $400 million
Adjusted effective tax rate* ~26%
* The Company does not reconcile forward-looking non-GAAP measures. See “Non-GAAP Reconciliations and Supplementary information”.
Twelve months ended December 31,
US$ (In millions, except per share amounts) 2025 2024 Change
Reported Adjusted((1)) Reported Adjusted((1)) Reported Adjusted
Net sales 31,316 31,316 29,818 29,818 +5.0 % +5.0 %
Gross margin 31.0 % 31.0 % 30.3 % 30.3 % +70 bps +70 bps
Operating profit 2,789 3,011 2,528 2,705 +10.3 % +11.3 %
Operating margin 8.9 % 9.6 % 8.5 % 9.1 % +40 bps +50 bps
Earnings per share - diluted 10.16 10.58 8.18 9.33 +24.2 % +13.4 %
Adjusted EBITDA 3,243 2,905 +11.6 %
Net debt((1)) : Adjusted EBITDA 1.1x 1.2x
Three months ended December 31,
US$ (In millions, except per share amounts) 2025 2024 Change
Reported Adjusted((1)) Reported Adjusted((1)) Reported Adjusted
Net sales 7,495 7,495 7,234 7,234 +3.6 % +3.6 %
Gross margin 30.6 % 30.6 % 29.7 % 29.7 % +90 bps +90 bps
Operating profit 596 625 509 549 +17.1 % +13.8 %
Operating margin 8.0 % 8.3 % 7.0 % 7.6 % +100 bps +70 bps
Earnings per share - diluted 1.99 2.10 1.78 1.88 +11.8 % +11.7 %
Adjusted EBITDA 686 601 +14.1 %
(1) The Company uses certain non-GAAP measures, which are not defined or specified under U.S. GAAP. See the section titled “Non-GAAP Reconciliations and Supplementary Information.”
Summary of financial results
Full calendar year
Net sales of $31.3 billion were 5.0% above last year driven by organic revenue
growth of 4.5% and acquisition growth of 1.0%, partially offset by 0.4% from
one fewer sales day and 0.1% from the combined adverse impact of foreign
exchange rates and a divestment in Canada. Price inflation was low single
digits.
Gross margin of 31.0% was 70 basis points ahead of last year driven by our
associates’ strong execution and the timing and extent of supplier price
increases. Reported operating profit was $2.8 billion (8.9% operating margin),
10.3% higher than last year. Adjusted operating profit of $3.0 billion (9.6%
adjusted operating margin) was 11.3% above last year.
Reported diluted earnings per share was $10.16 (CY2024: $8.18), an increase of
24.2%, while adjusted diluted earnings per share of $10.58 increased 13.4% due
to adjusted operating profit growth and the impact of share repurchases.
During the year we acquired eight businesses which in aggregate had annualized
revenue in excess of $300 million.
Calendar fourth quarter
Net sales of $7.5 billion were 3.6% ahead of last year driven by organic
revenue growth of 3.0% and acquisition growth of 0.9%, partially offset by
0.3% from the combined adverse impact of foreign exchange rates and a
divestment in Canada. Price inflation was low to mid-single digits.
In the US, residential end markets, representing approximately half of
revenue, remained weak. New residential housing starts and permit activity
remained down and repair, maintenance and improvement (“RMI”) work has
also remained soft. Overall, residential revenue was down 2% in the fourth
quarter.
Non-residential end markets, representing approximately half of US revenue,
performed better than residential. Our scale, expertise, multi-customer group
approach and value added solutions drove continued share gains with
non-residential revenue up 10% during the quarter. Growth continued to be
underpinned by both waterworks and commercial / mechanical, including large
capital project activity. Bidding and shipment activity on large capital
projects remained solid.
Gross margin was 30.6%, an increase of 90 basis points over last year, driven
by our associates’ disciplined execution. Operating expenses continued to be
diligently managed while we continued to invest in core capabilities for
future growth.
Reported operating profit of $596 million (8.0% operating margin) was 17.1%
ahead of last year. Adjusted operating profit of $625 million (8.3% adjusted
operating margin) was 13.8% ahead of last year.
Reported diluted earnings per share was $1.99 (Q4 CY 2024: $1.78), an increase
of 11.8%, while adjusted diluted earnings per share of $2.10 increased 11.7%,
driven principally by operating profit growth.
Segment overview
Twelve months ended
December 31,
US$ (In millions) 2025 2024 Change
Net sales:
USA 29,807 28,349 5.1 %
Canada 1,509 1,469 2.7 %
Total net sales 31,316 29,818 5.0 %
Adjusted operating profit:
USA 3,024 2,697 12.1 %
Canada 54 60 (10.0) %
Central and other costs (67) (52)
Total adjusted operating profit 3,011 2,705 11.3 %
Financial position
Net debt to adjusted EBITDA at December 31, 2025 was 1.1x and during the year
we invested $0.4 billion in capital expenditures, invested $0.3 billion in
eight acquisitions, paid $0.7 billion of dividends, and repurchased 4.5
million of our outstanding shares equating to $0.9 billion. We have a
remaining outstanding balance of $0.6 billion under the current share
repurchase program at December 31, 2025.
We have declared a quarterly dividend of $0.89. The dividend will be paid on
April 30, 2026 to stockholders of record as of March 6, 2026.
Update on market opportunities and strategy
Later this morning, we look forward to providing an updated view of how we are
uniquely positioned to provide essential water and air solutions for the
complex needs of the specialized professional. We will discuss how our scale
and capabilities combined with multi-year market opportunities in large
capital projects, water infrastructure investment, climate & comfort and
aging & underbuilt housing will allow us to continue outperforming the
market and deliver shareholder value over the longer term.
Investor relations changes
The Board would like to congratulate Brian Lantz, Vice President Investor
Relations and Communications, on his decision to retire effective May 1, 2026,
and thank him for his significant contribution to Ferguson during the last
five years, most notably establishing a strong investor relations presence in
the US after helping to transition our primary listing from the London Stock
Exchange to the New York Stock Exchange.
We are pleased to announce that Pete Kennedy has been promoted to Vice
President Investor Relations and Christine Dwyer has been promoted to Vice
President Communications and Public Relations. Pete has been with Ferguson for
over ten years, initially in finance and the last seven years within investor
relations, working closely with Brian. Christine brings over 25 years of
experience in communications, including the last 15 at Ferguson.
Investor conference call and webcast
A call with Kevin Murphy, CEO and Bill Brundage, CFO will commence at 8:30
a.m. ET (1:30 p.m. GMT) today. The call will be recorded and available on our
website after the event at corporate.ferguson.com
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fcorporate.ferguson.com%2Fhome%2Fdefault.aspx&esheet=54431295&newsitemid=20260224455990&lan=en-US&anchor=corporate.ferguson.com&index=1&md5=77666151eb887df52d1a54f73d15a083)
.
Dial in number US: +1 646 664 1960
UK: +44 (0) 20 3936 2999
Ask for the Ferguson call quoting 192073. To access the call via your laptop,
tablet or mobile device please go to corporate.ferguson.com
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fcorporate.ferguson.com%2Fhome%2Fdefault.aspx&esheet=54431295&newsitemid=20260224455990&lan=en-US&anchor=corporate.ferguson.com&index=2&md5=78324e1193151561e7de0da57f28cbea)
. If you have technical difficulties, please click the “Listen by Phone”
button on the webcast player and dial the number provided.
About Ferguson
Ferguson (NYSE: FERG; LSE: FERG) is North America’s largest value-added
distributor of essential water and air solutions, serving specialized
professionals in our $340B residential and non-residential construction
markets. We help make our customers’ complex projects simple, successful and
sustainable by providing expertise and a wide range of products and services
from plumbing, HVAC, appliances, and lighting to PVF, water and wastewater
solutions, and more. Headquartered in Newport News, Va., Ferguson has sales of
$31.3 billion (CY’25) and approximately 35,000 associates in over 1,700
locations. For more information, please visit corporate.ferguson.com
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fcorporate.ferguson.com%2Fhome%2Fdefault.aspx&esheet=54431295&newsitemid=20260224455990&lan=en-US&anchor=corporate.ferguson.com&index=3&md5=0bc43e08378171a101a903f5206dec9e)
.
Financial calendar
Q1 Results for period ending March 31, 2026 May 5, 2026 with call from 8:30 a.m. ET
Cautionary note on forward-looking statements
Certain information included in this announcement is forward-looking,
including within the meaning of the Private Securities Litigation Reform Act
of 1995, and involves risks, assumptions and uncertainties that could cause
actual results to differ materially from those expressed or implied by
forward-looking statements. Forward-looking statements cover all matters which
are not historical facts and include, without limitation, statements or
guidance regarding or relating to our future financial position, results of
operations and growth, plans and objectives for the future including our
capabilities and priorities, risks associated with changes in global and
regional economic, market and political conditions, ability to manage supply
chain challenges, ability to manage the impact of product price fluctuations,
our financial condition and liquidity, legal or regulatory changes and other
statements concerning the success of our business and strategies.
Forward-looking statements can be identified by the use of forward-looking
terminology, including terms such as “believes,” “estimates,”
“anticipates,” “expects,” “forecasts,” “guidance,”
“intends,” “continues,” “plans,” “projects,” “goal,”
“target,” “aim,” “may,” “will,” “would,” “could” or
“should” or, in each case, their negative or other variations or
comparable terminology and other similar references to future periods.
Forward-looking statements speak only as of the date on which they are made.
They are not assurances of future performance and are based only on our
current beliefs, expectations and assumptions regarding the future of our
business, future plans and strategies, projections, anticipated events and
trends, the economy and other future conditions. Therefore, you should not
place undue reliance on any of these forward-looking statements. Although we
believe that the forward-looking statements contained in this announcement are
based on reasonable assumptions, you should be aware that many factors could
cause actual results to differ materially from those contained in such
forward-looking statements, including but not limited to: weakness in the
economy, market trends, uncertainty and other conditions in the markets in
which we operate and the macroeconomic impact of factors beyond our control
(including, among others, inflation/deflation, recession, labor and wage
pressures, trade restrictions such as tariffs, sanctions and retaliatory
countermeasures, interest rates, and geopolitical conditions); failure to
rapidly identify or effectively respond to direct and/or end customers’
wants, expectations or trends, including costs and potential problems
associated with new or upgraded information technology systems or our ability
to timely deploy new omni-channel capabilities; decreased demand for our
products as a result of operating in highly competitive industries and the
impact of declines in the residential and non-residential markets and our
ability to effectively manage inventory as a result; changes in competition,
including as a result of market consolidation, new entrants, vertical
integration or competitors responding more quickly to emerging technologies
(such as generative or agentic artificial intelligence (“AI”)); failure of
a key information technology system or process as well as payment-related
risks, including exposure to fraud or theft; privacy and protection of
sensitive data failures, including failures due to data corruption,
cybersecurity incidents, network security breaches or the use of AI;
ineffectiveness of or disruption in our domestic or international supply chain
or our fulfillment network, including delays in inventory availability at our
distribution facilities and branches, increased delivery costs or lack of
availability due to loss of key suppliers; failure to effectively manage and
protect our facilities and inventory or to prevent personal injury to
customers, suppliers or associates, including as a result of workplace
violence; unsuccessful execution of our operational strategies, including the
failure to quickly adapt our strategy to emerging technologies; failure to
attract, retain and motivate key associates; exposure of associates,
contractors, customers, suppliers and other individuals to health and safety
risks and fleet incidents; risks associated with acquisitions, partnerships,
joint ventures and other business combinations, dispositions or strategic
transactions; risks associated with sales of private label products, including
regulatory, product liability and reputational risks and the adverse impact
such sales may have on supplier relationships and rebates; the failure to
achieve and maintain a high level of product and service quality or comply
with responsible sourcing standards; inability to renew leases on favorable
terms or at all, as well as any remaining obligations under a lease when we
close a facility; changes in, interpretations of, or compliance with tax laws
and accounting standards; our access to capital, indebtedness and changes in
our credit ratings and outlook; fluctuations in product prices/costs (e.g.,
including as a result of the use of commodity-priced materials,
inflation/deflation, trade restrictions and/or failure to qualify for or
maintain supplier rebates) and foreign currency; funding risks related to our
defined benefit pension plans; legal proceedings in the ordinary course of our
business as well as any failure to comply with domestic and foreign laws,
regulations and standards, as those laws, regulations and standards or
interpretations and enforcement thereof may change; the occurrence of
unforeseen developments such as litigation, investigations, governmental
proceedings or enforcement actions; our failure to comply with the obligations
associated with being a public company listed on the New York Stock Exchange
and London Stock Exchange and the costs associated therewith; the costs and
risk exposure relating to sustainability matters and disclosures, including
regulatory or legal requirements and disparate stakeholder expectations; and
other risks and uncertainties set forth under the heading “Risk Factors”
in our Annual Report on Form 10-K for the fiscal year ended July 31, 2025
filed with the Securities and Exchange Commission (“SEC”) on September 26,
2025 and in other filings we make with the SEC in the future. Additionally,
forward-looking statements regarding past trends or activities should not be
taken as a representation that such trends or activities will continue in the
future. Other than in accordance with our legal or regulatory obligations, we
undertake no obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or otherwise.
Important note regarding results reported in this announcement
All historical calendar quarter and calendar year results, as well as the
historical five month results, contained in this announcement have not been
audited and have been derived from the books and records of the Company. As
such, these results have not been subject to external audit or review
procedures, and may be subject to adjustment. We expect to file a Transition
Report on Form 10-KT on February 27, 2026, which will include audited results
for the transition period from August 1, 2025 to December 31, 2025, and for
the fiscal years ended July 31, 2025 and 2024. Investors are encouraged to
review the information presented in this announcement in conjunction with our
Transition Report on Form 10-KT, when available.
Non-GAAP Reconciliations and Supplementary Information
(unaudited)
Non-GAAP items
This announcement contains certain financial information that is not presented
in conformity with U.S. GAAP. These non-GAAP financial measures include
adjusted operating profit, adjusted operating margin, adjusted net income,
adjusted earnings per share - diluted, adjusted EBITDA, adjusted effective tax
rate, net debt and net debt to adjusted EBITDA ratio. The Company believes
that these non-GAAP financial measures provide users of the Company’s
financial information with additional meaningful information to assist in
understanding financial results and assessing the Company’s performance from
period to period. Management believes these measures are important indicators
of operations because they exclude items that may not be indicative of our
core operating results and provide a better baseline for analyzing trends in
our underlying businesses, and they are consistent with how business
performance is planned, reported and assessed internally by management and the
Board. Such non-GAAP adjustments include amortization of acquired intangible
assets, discrete tax items, and any other items that are non-recurring.
Non-recurring items may include various restructuring charges, gains or losses
on the disposals of businesses which by their nature do not reflect primary
operations, as well as certain other items deemed non-recurring in nature
and/or that are not a result of the Company’s primary operations. Because
non-GAAP financial measures are not standardized, it may not be possible to
compare these financial measures with other companies' non-GAAP financial
measures having the same or similar names. These non-GAAP financial measures
should not be considered in isolation or as a substitute for results reported
under U.S. GAAP. These non-GAAP financial measures reflect an additional way
of viewing aspects of operations that, when viewed with U.S. GAAP results,
provide a more complete understanding of the business. The Company strongly
encourages investors and shareholders to review the Company’s financial
statements and publicly filed reports in their entirety and not to rely on any
single financial measure.
The Company does not provide a reconciliation of forward-looking non-GAAP
financial measures to the most directly comparable U.S. GAAP financial
measures on a forward-looking basis because it is unable to predict with
reasonable certainty or without unreasonable effort non-recurring items, such
as those described above, that may arise in the future. The variability of
these items is unpredictable and may have a significant impact.
Reconciliation of Net Income to Adjusted Operating Profit and Adjusted EBITDA
Three months ended Twelve months ended
December 31, December 31,
(In millions) 2025 2024 2025 2024
Net income $ 389 $ 356 $ 2,006 $ 1,651
Provision for income taxes 145 109 578 695
Interest expense, net 48 48 190 179
Other expense, net 14 (4 ) 15 3
Operating profit 596 509 2,789 2,528
Restructuring activities((1)) (5 ) — 74 26
Amortization of acquired intangibles 34 40 148 151
Adjusted Operating Profit 625 549 3,011 2,705
Depreciation and impairment of PP&E 55 44 204 170
Amortization and impairment of non-acquired intangibles 6 8 28 30
Adjusted EBITDA $ 686 $ 601 $ 3,243 $ 2,905
(1) For the three and twelve months ended December 31, 2025, restructuring
expenses primarily related to the Company’s implementation of targeted
actions to streamline operations, enhancing speed and efficiency to better
serve customers and drive further profitable growth, including a gain on the
sale of a closed distribution center in November 2025. For the twelve months
ended December 31, 2024, restructuring expenses related to incremental costs
in connection with establishing a new corporate structure to domicile our
parent company in the United States as of August 1, 2024, and related
transition activities thereafter.
Net Debt : Adjusted EBITDA Reconciliation
To assess the appropriateness of its capital structure, the Company’s
principal measure of financial leverage is net debt to adjusted EBITDA. The
Company aims to operate with investment grade credit metrics and keep this
ratio within one to two times.
Net debt
Net debt comprises bank overdrafts, bank and other loans and derivative
financial instruments, excluding lease liabilities, less cash and cash
equivalents. Long-term debt is presented net of debt issuance costs.
December 31,
(In millions) 2025 2024
Long-term debt $ 3,978 $ 3,798
Short-term debt 148 400
Bank overdrafts((1)) — 124
Derivative liabilities 2 6
Cash and cash equivalents (557 ) (722 )
Net debt $ 3,571 $ 3,606
Adjusted EBITDA $ 3,243 $ 2,905
Net Debt: Adjusted EBITDA 1.1x 1.2x
(1) Bank overdrafts are included in other current liabilities in the Company’s
Consolidated Balance Sheet.
Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS - Diluted
Three months ended
December 31,
(In millions, except per share amounts) 2025 2024
per share((1)) per share((1))
Net income $ 389 $ 1.99 $ 356 $ 1.78
Restructuring activities((2)) (5 ) (0.03 ) — —
Amortization of acquired intangibles 34 0.18 40 0.20
Discrete tax adjustments((3)) (2 ) (0.01 ) (10 ) (0.05 )
Tax impact on non-GAAP adjustments((4)) (5 ) (0.03 ) (10 ) (0.05 )
Adjusted net income $ 411 $ 2.10 $ 376 $ 1.88
Diluted weighted average shares outstanding 195.9 200.2
Twelve months ended
December 31,
(In millions, except per share amounts) 2025 2024
per share((1)) per share((1))
Net income $ 2,006 $ 10.16 $ 1,651 $ 8.18
Restructuring activities((2)) 74 0.38 26 0.13
Amortization of acquired intangibles 148 0.75 151 0.75
Discrete tax adjustments((3)) (87 ) (0.44 ) 94 0.46
Tax impact on non-GAAP adjustments((4)) (53 ) (0.27 ) (39 ) (0.19 )
Adjusted net income $ 2,088 $ 10.58 $ 1,883 $ 9.33
Diluted weighted average shares outstanding 197.4 201.9
(1) Per share on a dilutive basis.
(2) For the three and twelve months ended December 31, 2025, restructuring
expenses primarily related to the Company’s implementation of targeted
actions to streamline operations, enhancing speed and efficiency to better
serve customers and drive further profitable growth, including a gain on the
sale of a closed distribution center in November 2025. For the twelve months
ended December 31, 2024, restructuring expenses related to incremental costs
in connection with establishing a new corporate structure to domicile our
parent company in the United States as of August 1, 2024, and related
transition activities thereafter.
(3) For the three months and twelve months ended December 31, 2025 and the three
months ended December 31, 2024, discrete tax adjustments generally included
the release of uncertain tax positions following the lapse of statute of
limitations, adjustments in connection with amended returns and the tax
treatment of certain compensation items, none of which were individually
material. For the twelve months ended December 31, 2024, discrete tax
adjustments primarily related to non-recurring, non-cash deferred tax charges
of $137 million, resulting from the elimination of certain pre-existing U.K.
tax attributes as part of the establishment of our parent company’s domicile
in the United States as of August 1, 2024. This charge was partially offset by
other discrete tax adjustments as noted for the three and twelve months ended
December 31, 2025 and three months ended December 31, 2024.
(4) For the three and twelve months ended December 31, 2025, the tax impact on
non-GAAP adjustments primarily related to restructuring activities and the
amortization of acquired intangibles. For the three and twelve months ended
December 31, 2024, the tax impact on non-GAAP adjustments primarily related to
the amortization of acquired intangibles.
Ferguson Enterprises Inc.
Condensed Consolidated Statements of Earnings
(unaudited)
Three months ended Twelve months ended
December 31, December 31,
(In millions, except per share amounts) 2025 2024 2025 2024
Net sales $7,495 $7,234 $31,316 $29,818
Cost of sales (5,199 ) (5,086 ) (21,608 ) (20,774 )
Gross profit 2,296 2,148 9,708 9,044
Selling, general and administrative expenses (1,610 ) (1,547 ) (6,465 ) (6,139 )
Restructuring activities 5 — (74 ) (26 )
Depreciation and amortization (95 ) (92 ) (380 ) (351 )
Operating profit 596 509 2,789 2,528
Interest expense, net (48 ) (48 ) (190 ) (179 )
Other (expense) income, net (14 ) 4 (15 ) (3 )
Income before income taxes 534 465 2,584 2,346
Provision for income taxes (145 ) (109 ) (578 ) (695 )
Net income $389 $356 $2,006 $1,651
Earnings per share - Basic $1.99 $1.78 $10.18 $8.19
Earnings per share - Diluted $1.99 $1.78 $10.16 $8.18
Weighted average number of shares outstanding:
Basic 195.7 200.0 197.1 201.5
Diluted 195.9 200.2 197.4 201.9
Ferguson Enterprises Inc.
Condensed Consolidated Statements of Earnings
(unaudited)
Five months ended
December 31,
(In millions, except per share amounts) 2025 2024
Net sales 12,833 $12,279
Cost of sales (8,903 ) (8,622 )
Gross profit 3,930 3,657
Selling, general and administrative expenses (2,677 ) (2,587 )
Restructuring activities 3 (3 )
Depreciation and amortization (157 ) (151 )
Operating profit 1,099 916
Interest expense, net (79 ) (79 )
Other income (expense), net (17 ) 5
Income before income taxes 1,003 842
Provision for income taxes (217 ) (206 )
Net income 786 $636
Earnings per share - Basic $4.01 $3.17
Earnings per share - Diluted $4.01 $3.17
Weighted average shares outstanding:
Basic 195.9 200.4
Diluted 196.2 200.7
Ferguson Enterprises Inc.
Condensed Consolidated Balance Sheets
(unaudited)
December 31, July 31,
(In millions) 2025 2025
Assets
Cash and cash equivalents $557 $674
Accounts receivable, net 3,312 3,964
Inventories 4,588 4,492
Prepaid and other current assets 1,031 945
Assets held for sale 48 71
Total current assets 9,536 10,146
Property, plant and equipment, net 1,911 1,846
Operating lease right-of-use assets 1,832 1,763
Deferred income taxes, net 165 225
Goodwill 2,470 2,464
Other non-current assets 1,238 1,285
Total assets $17,152 $17,729
Liabilities and stockholders’ equity
Accounts payable $3,117 $3,577
Other current liabilities 2,008 2,451
Total current liabilities 5,125 6,028
Long-term debt 3,978 3,752
Long-term portion of operating lease liabilities 1,436 1,367
Other long-term liabilities 756 750
Total liabilities 11,295 11,897
Total stockholders' equity 5,857 5,832
Total liabilities and stockholders' equity $17,152 $17,729
Ferguson Enterprises Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
(In millions) Twelve months ended
Decem
ber
31,
2025 20
24
Cash flows from operating activities:
Net income $2,006 $1,651
Depreciation and amortization 380 351
Share-based compensation 88 36
Changes in deferred income taxes 44 128
Changes in inventories (179 ) (241 )
Changes in receivables and other assets (210 ) (41 )
Changes in accounts payable and other liabilities 95 176
Changes in income taxes payable (41 ) 2
Other operating activities (2 ) 9
Net cash provided by operating activities 2,181 2,071
Cash flows from investing activities:
Purchase of businesses acquired, net of cash acquired (276 ) (297 )
Capital expenditures (354 ) (328 )
Other investing activities 85 10
Net cash used in investing activities (545 ) (615 )
Cash flows from financing activities:
Purchase of treasury shares (902 ) (893 )
Proceeds from sale of treasury shares — 17
Net change in debt and bank overdrafts (202 ) (717 )
Cash dividends (656 ) (637 )
Other financing activities (88 ) (69 )
Net cash used in financing activities (1,848 ) (2,299 )
Change in cash, cash equivalents and restricted cash (212 ) (843 )
Effects of exchange rate changes 20 (27 )
Cash, cash equivalents and restricted cash, beginning of period 773 1,643
Cash, cash equivalents and restricted cash, end of period $581 $773
Ferguson Enterprises Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
(In millions) Five months ended Twelve months ended
December 31, July
31,
2025 2025 20
24
Cash flows from operating activities:
Net income $786 $1,856 $1,735
Depreciation and amortization 157 373 335
Share-based compensation 70 28 49
Changes in inventories (87 ) (273 ) (252 )
Changes in receivables and other assets 553 (321 ) (98 )
Changes in accounts payable and other liabilities (706 ) 278 11
Other operating activities 86 (33 ) 93
Net cash provided by operating activities 859 1,908 1,873
Cash flows from investing activities:
Purchase of businesses acquired, net of cash acquired (21 ) (301 ) (260 )
Capital expenditures (185 ) (305 ) (372 )
Other investing activities 42 63 31
Net cash used in investing activities (164 ) (543 ) (601 )
Cash flows from financing activities:
Purchase of treasury shares (407 ) (948 ) (634 )
Proceeds from sale of treasury shares — — 17
Net change in debt and bank overdrafts (33 ) 225 129
Cash dividends (326 ) (489 ) (784 )
Other financing activities (57 ) (74 ) (41 )
Net cash used in financing activities (823 ) (1,286 ) (1,313 )
Change in cash, cash equivalents and restricted cash (128 ) 79 (41 )
Effects of exchange rate changes 2 3 (3 )
Cash, cash equivalents and restricted cash, beginning of period 707 625 669
Cash, cash equivalents and restricted cash, end of period $581 $707 $625
For further information please contact Investor relations
Brian Lantz, Vice President IR and Communications
Mobile: +1 224 285 2410
Pete Kennedy, Vice President Investor Relations
Mobile: +1 757 603 0111
Media inquiries
Christine Dwyer, Vice President Communications and PR
Mobile: +1 757 469 5813
View source version on businesswire.com:
https://www.businesswire.com/news/home/20260224455990/en/
(https://www.businesswire.com/news/home/20260224455990/en/)
Ferguson Enterprises Inc.
Copyright Business Wire 2026Recent news on Ferguson Enterprises
See all newsREG-Ferguson Enterprises Inc. Ferguson Enterprises Inc. (“Company”): Director/PDMR Shareholding
AnnouncementREG-Ferguson Enterprises Inc. Ferguson Files Definitive Proxy Materials and Transition Report
AnnouncementREG-Ferguson Enterprises Inc. Ferguson Enterprises Inc. (“Company”): Director/PDMR Shareholding
AnnouncementREG-Ferguson Enterprises Inc. Ferguson Files Form 10-KT
AnnouncementREG-Ferguson Enterprises Inc. Ferguson Reports Strong Calendar 2025 Results and Issues 2026 Guidance
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