Ferguson plc Q4 2025 Earnings Recap

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.