Ferguson plc Q1 2026 Earnings Recap

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.