Ferguson Enterprises (FERG) Q4 2025 earnings summary

Executive summary

• Fourth quarter sales reached $8.5 billion, up 6.9% year-over-year, with organic growth of 5.8% and acquisition growth of 1.1%.

• Full-year revenue was $30.8 billion, up 3.8%, with operating profit of $2.84 billion and diluted EPS of $9.94, a 2.6% increase.

• Operating profit for Q4 was $972 million, up 13.4% year-over-year, and diluted EPS rose 16.8% to $3.48.

• Nine acquisitions completed during the year, generating $300 million in annualized revenue; four acquisitions in Q4.

• Strong cash generation enabled $1.4 billion returned to shareholders and continued investment in growth initiatives.

Financial highlights

• Q4 adjusted operating profit: $972 million (11.4% margin), up 13.4% year-over-year.

• Full-year adjusted operating profit: $2.84 billion (9.2% margin), up 0.6%.

• Q4 adjusted EPS: $3.48, up 16.8%; full-year adjusted EPS: $9.94, up 2.6%.

• Gross margin for Q4 was 31.7%, up 70 basis points year-over-year; full-year gross margin was 30.7%, up 20 basis points.

• Free cash flow for the year was $1.65 billion, with operating cash flow of $1.9 billion.

Outlook and guidance

• Guidance for calendar 2025 is mid-single-digit revenue growth and adjusted operating margin of 9.2% to 9.6%.

• Interest expense expected at $180–$200 million, effective tax rate at 26%, and capex between $300–$350 million.

• Second half growth expected to be softer than the first half, with continued pressure in new residential and HVAC markets.

• Continued investment in scale and capabilities to support complex project needs.