Ferguson Enterprises reported strong full-year 2025 results, driven by market share gains and improved gross and operating margins. The company demonstrated robust cash generation and continued its strategy of market consolidation through acquisitions and returning capital to shareholders, while navigating mixed market conditions.
Full calendar year net sales increased 5.0% to $31.3 billion, driven by organic growth and acquisitions.
positiveGross margin improved by 70 bps year-over-year to 31.0%.
positiveReported operating profit increased 10.3% to $2.8 billion, with operating margin at 8.9%.
positiveDiluted earnings per share increased 24.2% to $10.16.
positiveStrong cash generation with $2.2 billion in operating cash flow.
positiveInvested $276 million in eight acquisitions, generating annualized revenue in excess of $300 million.
positiveShare repurchases of $0.9 billion during the year.
positiveNet debt to adjusted EBITDA remained strong at 1.1x.
positiveResidential end markets, representing approximately half of US revenue, remained weak with revenue down 2% in the fourth quarter.
attentionPrice inflation was low single digits for the full year and low to mid-single digits in the fourth quarter.
neutralCanada segment adjusted operating profit decreased 10.0% to $54 million.
negativeMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
USA | N/A | — | — | — |
Canada | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Our associates delivered a strong year, continuing to provide essential water and air solutions for our customers.
We are particularly pleased with double digit non-residential growth during the year and our continued performance against a challenging residential market.
Our scale-advantaged business model and strong balance sheet enable us to invest in organic growth, consolidate our markets through acquisitions and return capital to shareholders.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.