Ferguson Q2 sales slightly beats on acquisitions; raises 2026 outlook
Ferguson Q2 sales slightly beats on acquisitions; raises 2026 outlook
Overview
US distributor's Q2 sales rose 4.6%, slightly beating analyst expectations
Adjusted EPS for Q2 beat analyst expectations
Company completed five acquisitions and raised full-year guidance
Outlook
Ferguson raises 2026 net sales outlook to mid-single digit growth
Company now sees 2026 adjusted operating margin at 9.5%-9.8%
Capital expenditures for 2026 forecast at $375 mln to $425 mln
Result Drivers
ORGANIC AND ACQUISITION GROWTH - Q2 sales rose 4.6%, driven by 3.8% organic growth and 1.0% from acquisitions, partly offset by a divestment
NON-RESIDENTIAL STRENGTH - US non-residential revenue increased 8% as scale, expertise, and value-added solutions drove share gains
SUBDUED RESIDENTIAL MARKETS - Residential end markets remained subdued, with new construction and RMI activity weak, though residential revenue grew 2% in the US
Company press release: ID:nBw5wrQTba
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Slight Beat* | $8.75 bln | $8.67 bln (16 Analysts) |
Q2 Adjusted EPS | Beat | $3.39 | $3.29 (17 Analysts) |
Q2 EPS |
| $3.43 |
|
Q2 Adjusted EBITDA | Beat | $994 mln | $968.61 mln (14 Analysts) |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the construction supplies & fixtures peer group is "buy"
Wall Street's median 12-month price target for Ferguson Enterprises Inc is $285.00, about 11% above its August 7 closing price of $256.69
Reuters Recommended Reads
Aug 7 - Dream Finders to buy Beazer Homes in $2.2-billion deal
Aug 7 - Construction Partners Q3 revenue beats on strong project demand
Aug 7 - Canada's Taiga Building Products Q2 sales fall on lower commodity prices
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)