Ferguson Posts Strong Q4 and Year-End 2025 Results, Beats Estimates

Ferguson Enterprises Inc. (NYSE: FERG; LSE: FERG) has reported a robust performance for the fourth quarter and the fiscal year ending July 31, 2025. The company has exceeded expectations in several key financial metrics, marking a successful conclusion to the fiscal year.

FERG: Fourth Quarter Results Exceed Market Expectations

Ferguson Enterprises Inc. has reported a strong finish to the fiscal year with fourth-quarter sales reaching $8.5 billion, a 6.9% increase compared to the previous year. This performance exceeded market expectations, which anticipated revenue of $8.44 billion. The company’s diluted earnings per share for the quarter stood at $3.55, significantly surpassing the expected $3.01. This remarkable surge in earnings is attributed to the increase in operating profit and the impact of share repurchases.

Comparing the current performance against expectations, Ferguson’s gross margin improved by 70 basis points to 31.7%, while the operating margin increased to 10.9%. These results reflect the company’s effective management of operating expenses and strategic investments in core capabilities. The reported operating profit of $925 million was 14.1% higher than the previous year, showcasing the company’s ability to navigate a challenging market environment.

Throughout the fiscal year, Ferguson achieved net sales of $30.8 billion, marking a 3.8% increase. Despite a slight decline in pricing during the year, the company maintained a gross margin of 30.7%, 20 basis points ahead of the previous year. The adjusted operating profit of $2.8 billion was marginally above the prior year, demonstrating Ferguson’s commitment to sustaining growth in a competitive market.

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Ferguson Issues 2025 Guidance and Updates Fiscal Year-End

Looking ahead, Ferguson has announced a change in its fiscal year-end from July 31 to December 31, with a transition period from August 1, 2025, to December 31, 2025. This strategic shift allows the company to focus on its customers during peak business periods. The company plans to release earnings for the three-month period ending October 31, 2025, on December 9, 2025, and will report its five-month transition period results in February 2026.

For the calendar year 2025, Ferguson has provided guidance indicating an expectation of mid-single-digit revenue growth, with an adjusted operating margin projected to be between 9.2% and 9.6%. Despite market uncertainties, the company remains optimistic about leveraging growth opportunities in both residential and non-residential markets. Ferguson’s strategic investments in key growth areas and its robust acquisition strategy are expected to support this positive outlook.

The company’s financial position remains strong, with a net debt to adjusted EBITDA ratio of 1.1x. Ferguson continues to invest in capital expenditures, acquisitions, and its share repurchase program, with a remaining balance of $1.0 billion under the current repurchase plan. The company has also declared a quarterly dividend of $0.83 per share, bringing the full-year dividend to $3.32, a 5% increase over the previous 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.