Summary
Ferguson Enterprises Inc. (FERG) reported its third-quarter results for fiscal year 2025, ending April 30, 2025. The company saw a 4.3% increase in net sales, reaching $7.6 billion, driven by higher sales volumes and contributions from acquisitions. This growth was observed across both residential and non-residential markets, particularly in the United States. Despite top-line growth, operating profit experienced a 3.0% decline to $606 million, largely due to $70 million in non-recurring business restructuring expenses aimed at streamlining operations. However, adjusted operating profit, which excludes these charges, rose by 6.1%, indicating underlying operational strength. Diluted earnings per share (EPS) fell 5.0% to $2.07, but adjusted diluted EPS increased by 7.8% to $2.50, reflecting the impact of restructuring costs on reported earnings. For the nine-month period, net sales grew 2.7% to $22.3 billion, while net income decreased by 10.0% to $1.2 billion. The decline in net income and EPS is significantly influenced by the aforementioned restructuring charges and other non-recurring items. The company's balance sheet remains robust, with total assets increasing to $17.3 billion. Cash flow from operations for the nine months was $1.4 billion, demonstrating continued operational cash generation. Ferguson also actively managed its capital structure, with significant share repurchases and debt management activities throughout the period. The company maintains a strong liquidity position and expects its current cash flow and access to capital to cover its operational and investment needs.
Financial Highlights
51 data points| Revenue | $7.21B |
| Cost of Revenue | $5.00B |
| Gross Profit | $2.22B |
| SG&A Expenses | $1.56B |
| Operating Income | $507.00M |
| Net Income | $345.00M |
| EPS (Basic) | $1.74 |
| EPS (Diluted) | $1.73 |
| Shares Outstanding (Basic) | 198.80M |
| Shares Outstanding (Diluted) | 199.00M |
Key Highlights
- 1Net sales increased by 4.3% to $7.6 billion for the third quarter of fiscal year 2025, driven by higher sales volume and acquisitions.
- 2Operating profit decreased by 3.0% to $606 million due to $70 million in business restructuring expenses; however, adjusted operating profit increased by 6.1%.
- 3Diluted earnings per share decreased by 5.0% to $2.07, but adjusted diluted EPS increased by 7.8% to $2.50.
- 4For the nine months ended April 30, 2025, net sales grew 2.7% to $22.3 billion, while net income decreased by 10.0% to $1.2 billion.
- 5The United States segment continues to be the primary driver of sales growth, with both residential and non-residential markets showing improvement.
- 6The company utilized $759 million for share repurchases in the nine-month period, reflecting a commitment to returning capital to shareholders.
- 7Ferguson maintains a strong liquidity position with $519 million in cash and cash equivalents and $2.1 billion in available liquidity from undrawn debt facilities as of April 30, 2025.