Plumbing supplies distributor Ferguson beats Q1 sales expectations, forecasts 2025 sales growth

Ferguson Enterprises

09/12/2025 11:58

Overview

Ferguson Q1 sales rise 5.1% to $8.2 bln, beating analyst expectations

Adjusted EPS for Q1 beats estimates, rising 15.9%

Company repurchased $208 mln in shares during Q1

Outlook

Ferguson expects 2025 net sales to grow by ~5%

Company projects 2025 adjusted operating margin of 9.4% - 9.6%

Interest expense for 2025 expected to be ~$190 mln

Result Drivers

NON-RESIDENTIAL GROWTH - Non-residential revenue grew 12% driven by scale, expertise, and large capital projects

RESIDENTIAL CHALLENGES - Residential revenue down 1% due to weak housing starts and soft RMI work

GROSS MARGIN IMPROVEMENT - Gross margin improved by 60 bps due to disciplined execution and cost management

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$8.17 bln
$8.03 bln (14 Analysts)
Q1 Adjusted EPS
Beat
$2.84
$2.57 (13 Analysts)
Q1 EPS
$2.90
Q1 Adjusted EBITDA
Beat
$867 mln
$800.69 mln (13 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 6 "hold" and no "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 $257.50, about 4.8% above its December 8 closing price of $245.80

The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nBw6CPlZMa

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(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.)