**Summary of Ferguson Enterprises Inc. Fourth Quarter and Year-End Results (September 16, 2025):**
**Financial Highlights**
**Fourth Quarter (Q4) 2025**
Sales increased by **6.9%** to **$8.5 billion**, driven by organic growth of **5.8%** and acquisitions contributing **1.1%**.
Gross margin rose to **31.7%** (up **70 bps** YoY), and operating margin reached **10.9%** (up **70 bps** YoY).
Diluted earnings per share (EPS) surged **59%** to **$3.55** (adjusted EPS: **$3.48**, up **16.8%**).
Completed **four acquisitions** and repurchased **$189 million** in shares.
Declared a quarterly dividend of **$0.83** per share.
**Full Year 2025**
Sales grew **3.8%** to **$30.8 billion**, with organic growth of **3.2%** and acquisitions adding **1.0%**.
Gross margin improved to **30.7%** (up **20 bps** YoY).
Diluted EPS increased **9.3%** to **$9.32** (adjusted EPS: **$9.94**, up **2.6%**).
Strong cash generation with **$1.9 billion** in operating cash flow.
Invested **$301 million** in **nine acquisitions**, generating **$300 million** in annualized revenue.
Share repurchases totaled **$948 million**, with **$1.0 billion** remaining under the repurchase program.
Balance sheet remains robust with **net debt to adjusted EBITDA** at **1.1x**.
**Operational Updates**
**US Business**
Q4 sales grew **7.1%**, with non-residential revenue up **15%** (driven by waterworks, commercial, and infrastructure projects).
Residential revenue remained flat due to weak housing starts and soft repair/maintenance demand.
Completed **four acquisitions**including HPS SpecialtiesRitchie Environmental SolutionsManufactured Duct & Supplyand Water ResourcesInc.
**Canada Business**
Q4 sales grew **4.8%**, with acquisitions contributing **4.9%** (partially offset by FX headwinds).
Non-residential markets outperformed residential, similar to the US.
**Strategic Changes**
**Fiscal Year Change** Transitioning from a July 31 year-end to a December 31 year-end, effective January 1, 2026. A five-month transition period (August 1, 2025 – December 31, 2025) will precede this change.
**Guidance for Calendar Year 2025**
Expects **mid-single digit revenue growth** and an **adjusted operating margin** of **9.2% to 9.6%**.
**Management Commentary**
CEO Kevin Murphy highlighted strong performance despite a challenging market, emphasizing investments in growth areas, acquisitions, dividend growth, and share buybacks. The company remains confident in medium-term prospects, leveraging tailwinds in residential and non-residential markets.
**Key Metrics**
**Net Debt to Adjusted EBITDA** **1.1x** (both Q4 and full year).
**Dividends** Full-year dividend increased **5%** to **$3.32** per share.
**Conclusion**
Ferguson delivered robust Q4 and full-year results, driven by strategic acquisitions, operational efficiency, and market share gains. The company is well-positioned for future growth, supported by a strong balance sheet and strategic investments in key areas.