Summary
Ferguson Enterprises Inc. (FERG) reported its financial results for the second quarter and the first six months of fiscal year 2025, ending January 31, 2025. For the quarter, net sales increased by 3.0% year-over-year to $6.9 billion, driven by higher sales volume and acquisitions, though this was partially offset by approximately 2% price deflation. However, operating profit saw a notable decrease of 14.0% (or 13.7% on an adjusted basis) due to increased operating costs from sales growth and cost inflation. Consequently, diluted earnings per share declined by 12.7% to $1.38. The six-month period showed similar trends with net sales up 1.8% to $14.6 billion. Operating profit for the six months decreased by 11.8% (or 10.8% on an adjusted basis), and net income fell 11.3% to $746 million. This performance reflects ongoing pressures from cost inflation impacting selling, general, and administrative expenses, and a slight compression in gross profit margin, despite efforts to manage expenses and grow sales. The company continues to invest in acquisitions and strategic projects, impacting cash flows from investing activities, while also actively managing its debt and returning capital to shareholders through share repurchases.
Financial Highlights
51 data points| Revenue | $6.87B |
| Cost of Revenue | $4.83B |
| Gross Profit | $2.04B |
| SG&A Expenses | $1.54B |
| Operating Income | $410.00M |
| Net Income | $276.00M |
| EPS (Basic) | $1.38 |
| EPS (Diluted) | $1.38 |
| Shares Outstanding (Basic) | 199.60M |
| Shares Outstanding (Diluted) | 199.80M |
Key Highlights
- 1Net sales for the second quarter increased by 3.0% to $6.9 billion, primarily due to higher sales volume and incremental revenue from acquisitions, though price deflation partially offset this growth.
- 2Operating profit decreased by 14.0% to $410 million for the quarter, impacted by higher operating costs driven by sales volume growth and cost inflation.
- 3Diluted Earnings Per Share (EPS) declined by 12.7% to $1.38 for the second quarter, reflecting lower net income partly offset by share repurchases.
- 4For the first six months of fiscal 2025, net sales increased 1.8% to $14.6 billion, while operating profit decreased 11.8% year-over-year.
- 5The company repurchased $508 million in shares during the first six months of fiscal 2025, and has extended its repurchase program authorization to $5.0 billion.
- 6Acquisitions remain a growth strategy, with two businesses acquired in the first six months of fiscal 2025 contributing $10 million to net sales.
- 7Cash provided by operating activities decreased by $178 million to $685 million for the six-month period, mainly due to lower net income and changes in working capital.