Ferguson Enterprises (FERG) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 2026 reached $8.8 billion, up 4.6% year-over-year, driven by 3.8% organic growth and 1% from acquisitions.

• Adjusted operating profit rose 2.9% to $932 million; diluted EPS increased 5.3% to $3.39, with reported EPS up to $3.43.

• Five to eight acquisitions completed year-to-date, including a definitive agreement to acquire FloWorks for $1.6 billion, expected to close in Q3.

• Returned $202–$438 million to shareholders via dividends and buybacks; quarterly dividend declared at $0.89 per share.

• Raised full-year guidance for net sales and operating margin.

Financial highlights

• Q2 net sales: $8.8 billion (+4.6% YoY); gross margin: 31% (down 20 bps YoY).

• Adjusted operating margin: 10.7% (down 10 bps YoY); adjusted EBITDA: $994 million (+3.2% YoY).

• Half-year net sales: $16.2 billion (+4.2% YoY); adjusted operating profit: $1.58 billion (+5.1% YoY).

• Free cash flow for H1: $45–$500 million; operating cash flow: $716 million (down YoY due to working capital and tax timing).

• SG&A expenses for Q2: $1.7 billion (+4.1% YoY), 19.6% of sales.

Outlook and guidance

• Full-year 2026 guidance raised to mid-single-digit net sales growth and adjusted operating margin of 9.5%-9.8%.

• CapEx expected at $375–$425 million; effective tax rate at ~26%.

• Guidance excludes the impact of the FloWorks acquisition, expected to close in Q3.