Ferguson Enterprises (FERG) Posts Strong Q1 Beat on EPS and Revenue

Ferguson Enterprises Inc. (NYSE: FERG; LSE: FERG) has reported its financial results for the quarter ended October 31, 2025. The company has exceeded both earnings and revenue expectations, showcasing robust growth and strategic execution in a challenging market environment.

Stronger-Than-Expected Q4 Results Driven by 5.1% Net Sales Growth

Ferguson Enterprises Inc. has reported a strong performance for the quarter ended October 31, 2025, surpassing market expectations with an adjusted earnings per share (EPS) of $2.84 and net sales of $8.2 billion. These figures represent a notable increase from the anticipated EPS of $2.77 and revenue of $8.18 billion. The company’s ability to exceed expectations is attributed to its strategic focus on growth and market consolidation, despite operating in a challenging environment.

The quarter saw Ferguson achieve a 5.1% increase in net sales, driven by organic revenue growth and strategic acquisitions. This growth was slightly offset by adverse foreign exchange impacts and a divestment in Canada. The company’s gross margin improved to 30.7%, a 60 basis point increase from the previous year, due to disciplined execution and cost management.

Ferguson’s operating profit also saw significant gains, with a reported profit of $771 million, marking a 15.9% increase from the prior year. The adjusted operating profit stood at $808 million, reflecting a 14.4% increase. This performance was bolstered by strong non-residential revenue growth and strategic acquisitions, demonstrating the company’s resilience and ability to navigate market challenges effectively.

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Ferguson Raises Full-Year Forecast With Strong Sales and Margin Guidance

Looking ahead, Ferguson Enterprises has updated its guidance for the calendar year 2025, projecting continued growth and market leadership. The company anticipates net sales growth of approximately 5%, with an adjusted operating margin expected to range between 9.4% and 9.6%. This updated guidance reflects Ferguson’s confidence in its strategic initiatives and market positioning.

The company has also provided guidance on interest expenses, projecting approximately $190 million, and capital expenditures, estimated to be around $350 million. These figures align with Ferguson’s commitment to investing in growth opportunities and maintaining a strong financial position.

Ferguson’s leadership has expressed confidence in the company’s ability to leverage multiyear market tailwinds and continue delivering strong performance. The company’s focus on both residential and non-residential markets, along with its scale-advantaged business model, positions it well to capitalize on future opportunities and sustain its growth trajectory in the coming year.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.