Summary
Ferguson Enterprises Inc. (FERG) reported solid financial results for the first quarter of 2026, with net sales increasing by 3.6% to $7.47 billion compared to the prior year. This growth was primarily driven by price inflation and contributions from acquisitions, though offset by a slight decrease in sales volume. The company demonstrated effective cost management, with SG&A expenses as a percentage of sales decreasing, leading to a significant 20.7% increase in operating profit to $612 million and a 20.0% rise in net income to $414 million. Diluted earnings per share (EPS) also saw a substantial increase to $2.13. The company continues to prioritize capital allocation towards shareholder returns, evidenced by ongoing share repurchases and a new $2 billion repurchase program authorized in April 2026, replacing the previous $5 billion program which is nearing completion. Despite a decrease in net cash provided by operating activities, primarily due to increased investment in working capital, Ferguson maintains a strong liquidity position with significant cash on hand and substantial availability under its credit facilities, indicating a healthy financial standing to meet its obligations and fund future growth.
Financial Highlights
49 data points| Revenue | $7.47B |
| Cost of Revenue | $5.15B |
| Gross Profit | $2.32B |
| SG&A Expenses | $1.61B |
| Operating Income | $612.00M |
| Net Income | $414.00M |
| EPS (Basic) | $2.13 |
| EPS (Diluted) | $2.13 |
| Shares Outstanding (Basic) | 194.60M |
| Shares Outstanding (Diluted) | 194.80M |
Key Highlights
- 1Net sales grew 3.6% to $7.47 billion, driven by price inflation and acquisitions, despite lower volumes.
- 2Operating profit increased significantly by 20.7% to $612 million, demonstrating strong operational leverage.
- 3Net income rose by 20.0% to $414 million, with diluted EPS reaching $2.13.
- 4Gross profit margin improved slightly to 31.0% from 30.7%, reflecting effective pricing and operational execution.
- 5SG&A expenses as a percentage of sales decreased to 21.5% from 21.7%, indicating improved efficiency.
- 6The company authorized a new $2 billion share repurchase program, signaling continued commitment to shareholder returns.
- 7Liquidity remains strong with $820 million in cash and cash equivalents and $2.4 billion in available credit facilities.