Ferguson Q4 Earnings Top Estimates As Non-Residential Strength Offsets Housing Weakness (CORRECTED)

Editor’s Note: This article has been updated to reflect that Ferguson’s adjusted EPS beat the consensus estimate.

Ferguson Enterprises Inc.?on Tuesday reported fourth-quarter FY25 results.

Earnings Snapshot

• Sales rose?3.6%?year over year (Y/Y) to?$7.50 billion, missing the?$7.57 billion?estimate.
• The company stated that the increase reflected 3.0% organic growth and 0.9% acquisition growth, partially offset by 0.3% due to foreign exchange and a divestment in Canada.
• Gross margin expanded 90 basis points to 30.6% in the quarter.
• Adjusted operating profit increased 13.8% Y/Y to $625 million, with the margin expanded 70 bps Y/Y to 8.3% in the quarter.
• Adjusted EPS rose?11.7% Y/Y?to?$2.10, which beat the?$2.05 estimate.

Segment Performance

The company disclosed that residential revenue declined 2% Y/Y as the U.S. residential end markets (which account for roughly half of revenue) remained weak in the quarter amid lower housing starts, permit activity, and subdued RMI demand.

Meanwhile, non-residential markets outperformed, with revenue rising 10% driven by share gains, strong execution, and value-added solutions. The business benefited from waterworks and commercial/mechanical demand, including solid bidding and shipments tied to large capital projects.

Management Commentary

Ferguson CEO Kevin Murphy expects “another year of outperformance, strong operational execution and continued investment.”

”We are confident in our ability to capitalize on long-term growth drivers across both residential and non-residential markets as we provide essential water and air solutions for the complex project needs of the specialized professional,” he added.

Outlook

For 2026, the company expects net sales to grow in low to mid-single digits and an adjusted operating margin of 9.4% – 9.8%.

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