10-KPeriod: FY2024

Ferguson Enterprises Inc. /DE/ Annual Report, Year Ended Jul 31, 2024

Filed September 25, 2024For Securities:FERG

Summary

Ferguson Enterprises Inc. reported its fiscal year 2024 results, a period marked by a slight dip in net sales but resilient profitability. Net sales for the year were $29.6 billion, a modest decrease of 0.3% compared to the prior year, attributed to price deflation and lower sales volumes, partially offset by acquisitions and an extra sales day. Despite the slight revenue decline, the company maintained its operating profit and reported diluted earnings per share of $8.53. A notable event during the year was the completion of a merger that established Ferguson Enterprises Inc. as a Delaware corporation, with Ferguson plc becoming a wholly owned subsidiary. The company continued its focus on strategic initiatives, including investing in new market distribution centers and technology, alongside a robust share repurchase program. The balance sheet remains solid with total debt at $3.9 billion and significant liquidity available from undrawn debt facilities, positioning the company to fund operations and strategic investments.

Financial Highlights

50 data points
Beta

Revenue

$29.64B

30.5% Gross Margin

Net Income

$1.74B

5.9% Net Margin

EPS (Diluted)

$8.53

Total Assets

$16.57B

Cash & Equivalents

$571.00M

Free Cash Flow

$1.87B

Financial Statements
Beta
Revenue$29.64B
Cost of Revenue$20.58B
Gross Profit$9.05B
SG&A Expenses$6.04B
Operating Income$2.65B
Net Income$1.74B
EPS (Basic)$8.55
EPS (Diluted)$8.53
Shares Outstanding (Basic)202.90M
Shares Outstanding (Diluted)203.50M

Key Highlights

  • 1Net sales for fiscal year 2024 were $29.6 billion, a slight decrease of 0.3% compared to fiscal year 2023, primarily due to price deflation and lower sales volumes.
  • 2Operating profit remained stable at $2.65 billion, with a diluted EPS of $8.53.
  • 3The company completed a significant corporate restructuring, moving its ultimate parent company domicile to the United States.
  • 4Ferguson invested $372 million in capital expenditures and $260 million in acquisitions during fiscal 2024, supporting its growth strategy.
  • 5The company returned $1.4 billion to shareholders through dividends and share repurchases ($784 million and $634 million, respectively).
  • 6Total debt stood at $3.9 billion as of July 31, 2024, with ample liquidity from available debt facilities.
  • 7The United States segment continues to dominate sales, representing 95% of the total, with the Canadian segment contributing 5%.

Frequently Asked Questions

In fiscal year 2024, Ferguson reported net sales of $29.6 billion, a slight decrease of 0.3% year-over-year, primarily due to price deflation and lower sales volumes. Operating profit was $2.65 billion, and diluted earnings per share were $8.53. The company managed its expenses effectively, despite facing inflationary pressures.

The most significant strategic development was the successful completion of a merger that re-domiciled the company's ultimate parent to the United States, with Ferguson Enterprises Inc. becoming the successor entity. The company also continued to invest in its growth strategy through capital expenditures and acquisitions, totaling $372 million and $260 million, respectively.

Ferguson returned approximately $1.4 billion to shareholders through dividends ($784 million) and share repurchases ($634 million). The company also has remaining authorization for share repurchases, providing flexibility for future capital allocation.

Ferguson maintained a strong financial position with total debt at $3.9 billion as of July 31, 2024. The company reported $571 million in cash and cash equivalents and had $2.2 billion in available liquidity from undrawn debt facilities, indicating a healthy capacity to meet its financial obligations and fund future investments.