01—Abstract
Summary
Summary of the 10-Q filed December 9, 2025. Cited figures are marked; the original filing is the authoritative source.
Ferguson Enterprises Inc. reported strong financial performance for the quarter ended October 31, 2025.
Net sales increased by 5.1% to $8.2 billiona, driven by a combination of price inflation, incremental sales from acquisitions, and higher sales volume, particularly in non-residential markets in the United States. This top-line growth translated into a significant increase in profitability, with operating profit rising by 15.9% and net income surging by 21.3% to $570 million. Diluted earnings per share (EPS) also saw a substantial increase of 23.9% to $2.90, reflecting both improved net income and the positive impact of ongoing share repurchase programs.
The company maintained a healthy cash flow from operations, generating $430 millionb, which supports its strategic investments in capital expenditures and acquisitions, as well as continued shareholder returns through dividends and share buybacks. Ferguson's robust financial position and operational execution demonstrate resilience and growth in the current market.
02—Key points
Key Highlights
- Net sales grew 5.1% year-over-year to $8.2 billion, driven by price inflation, acquisitions, and volume.
- Operating profit increased by 15.9% to $771 million, indicating improved operational efficiency and sales leverage.
- Net income saw a significant rise of 21.3% to $570 million.
- Diluted Earnings Per Share (EPS) grew by 23.9% to $2.90, boosted by higher net income and share repurchases.
- Net cash provided by operating activities increased by 24.6% to $430 million.
- Gross profit margin improved to 30.7% from 30.1% in the prior year's quarter due to pricing initiatives.
- The United States segment showed strong growth, with net sales up 5.3% and adjusted operating profit up 15.6%, driven by non-residential markets.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Ferguson Enterprises Inc. kept $0.07.
- Revenue$8.17B100.0%
- Cost of revenue−$5.66B69.3%
- Gross profit$2.51B30.7%
- Operating costs−$1.74B21.2%
- Operating income$771.0M9.4%
- Interest, other & tax−$201.0M2.5%
- Net income$570.0M7.0%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed December 9, 2025Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $8.17B$7.77B | +5.1% |
| Cost of Revenue | $5.66B$5.43B | +4.3% |
| Gross Profit | $2.51B$2.34B | +7.1% |
| SG&A Expenses | $1.64B$1.58B | +3.5% |
| Operating Income | $771.00M$665.00M | +15.9% |
| Net Income | $570.00M$470.00M | +21.3% |
| EPS (Basic) | $2.91$2.34 | +24.4% |
| EPS (Diluted) | $2.90$2.34 | +23.9% |
| Shares Outstanding (Basic) | 196.20M200.80M | −2.3% |
| Shares Outstanding (Diluted) | 196.60M201.30M | −2.3% |
05—Questions
Frequently Asked Questions
What were the primary drivers of Ferguson's revenue growth in this quarter?
Ferguson's net sales increased by 5.1% to $8.2 billion, primarily driven by price inflation (approximately 3%), incremental sales from acquisitions (1.0%), and higher sales volume. Growth was particularly strong in the non-residential markets within the United States segment.
How did the company's profitability change compared to the previous year?
Profitability improved significantly. Operating profit increased by 15.9% to $771 million, and net income rose by 21.3% to $570 million. The gross profit margin also expanded to 30.7% from 30.1%, attributed to management's actions to better capture value.
What is the company's stance on liquidity and debt?
Ferguson maintains a strong liquidity position with $526 million in cash and cash equivalents and $2.4 billion in available liquidity from undrawn debt facilities as of October 31, 2025. Total debt stood at $4.1 billion, and the company stated it was in compliance with all debt covenants and anticipated meeting its debt obligations.
How is the company returning value to shareholders?
Ferguson is returning value through both dividends and share repurchases. The company paid $164 million in dividends and repurchased $208 million of its shares during the quarter. The company has a substantial ongoing share repurchase program, with $4.2 billion completed out of an authorized $5.0 billion.
06—Continue