Ferguson plc Earnings Recaps
Q1 2026
May 6, 2026
Shares dropped 3.3% as investors reacted to signs of deceleration in key residential end markets and margin pressures in Canada, despite overall revenue growth and margin expansion in the U.S.
Key takeaways
- Total sales rose 5% to $8.2 billion, driven by 4% organic growth and 1% from acquisitions.
- U.S. net sales increased 5.3%, with nonresidential revenues up 12% offsetting a 1% decline in residential revenue amid weak housing starts and RMI activity.
- Gross margin improved 60 basis points to 30.7%, aided by disciplined cost control and operational leverage of 20 basis points.
- Canadian operating profit declined by $7 million despite a 2.2% increase in sales, reflecting subdued markets and the impact of divestments and foreign exchange.
- Diluted EPS grew nearly 16% to $2.84, supported by share repurchases; however, investor concerns about residential weakness and Canadian margin compression weighed on the stock.
Q4 2025
Sep 16, 2025
Ferguson reported strong fourth quarter results with sales of $8.5 billion, reflecting 6.9% growth year-over-year, driven by increased demand in nonresidential markets despite challenges in the residential segment.
Key takeaways
- Operating profit increased 13.4% to $972 million, with a gross margin up 70 basis points to 31.7%.
- Diluted earnings per share rose 16.8% to $3.48, highlighting the company’s effective cost management and capital allocation strategies.
- Ferguson executed four acquisitions this quarter, focusing on HVAC and Waterworks diversification to bolster growth.
- The nonresidential market showed resilience with revenue growth of approximately 15%, while residential revenue remained flat amidst market challenges.
- Strong cash generation of $1.9 billion allowed for $1.4 billion returned to shareholders through dividends and share repurchases.