10-KPeriod: FY2025

Ferguson Enterprises Inc. /DE/ Annual Report, Year Ended Dec 31, 2025

Filed February 27, 2026For Securities:FERG

Summary

Ferguson Enterprises Inc. reported a solid performance for the five months ending December 31, 2025, with net sales increasing by 4.5% to $12.8 billion, driven by price inflation and acquisitions. Operating profit saw a substantial increase of 20.0%, reflecting effective management actions to capture value and operating leverage. Diluted earnings per share rose significantly by 26.5% to $4.01, supported by higher net income and the impact of share repurchases. The company's U.S. segment remains the primary driver of growth, with strong performance in non-residential markets boosted by waterworks and commercial/mechanical projects. While residential markets experienced a slight decline due to softer housing starts and RMI activity, the overall business demonstrated resilience. Ferguson continues to execute its growth strategy, including strategic acquisitions, and maintain a strong liquidity position with significant undrawn debt facilities, positioning it well for future investments and shareholder returns.

Key Highlights

  • 1Net sales increased by 4.5% to $12.8 billion for the five months ending December 31, 2025, primarily due to price inflation and acquisitions.
  • 2Operating profit grew by 20.0% to $1.1 billion, indicating improved operational efficiency and value capture.
  • 3Diluted earnings per share (EPS) rose 26.5% to $4.01, demonstrating strong profitability and the positive impact of share repurchases.
  • 4The United States segment led the growth, with non-residential markets up 11%, driven by waterworks and commercial/mechanical projects.
  • 5Residential markets saw a slight decrease of 1%, attributed to softer housing starts and RMI activity.
  • 6The company maintained a strong liquidity position with $2.4 billion in available liquidity from undrawn debt facilities.
  • 7Ferguson paid $326 million in dividends and repurchased $407 million in shares during the period, returning capital to shareholders.

Frequently Asked Questions

For the five months ending December 31, 2025, Ferguson reported a net sales increase of 4.5% to $12.8 billion and an operating profit increase of 20.0% to $1.1 billion. Diluted earnings per share grew by 26.5% to $4.01.

The United States segment was the primary driver of growth, with net sales increasing by 4.6%. Within the U.S. segment, non-residential markets experienced significant growth of approximately 11%, driven by waterworks and commercial/mechanical projects.

Ferguson maintains a strong liquidity position with $557 million in cash and cash equivalents and $2.4 billion in available liquidity from undrawn debt facilities as of December 31, 2025. The company continues to return capital to shareholders through dividends and share repurchases while investing in capital expenditures for future growth.

Ferguson operates in highly competitive and fragmented markets, making it susceptible to economic downturns and fluctuations in residential and non-residential construction. Key risks include market conditions, competition, potential commodity price volatility, cybersecurity threats, and challenges in supply chain management.