**Summary of Ferguson Enterprises Inc.s 2025 Financial Results and 2026 Guidance**
Ferguson Enterprises Inc. reported strong financial results for the calendar year 2025, highlighting robust growth, improved margins, and strategic investments. Key highlights include
**Revenue Growth**Sales increased by 5.0% to $31.3 billion, driven by organic growth of 4.5% and acquisition growth of 1.0%.
**Margin Expansion**Gross margin improved to 31.0%, up 70 basis points, while operating margin rose to 8.9%, up 40 basis points. Adjusted operating margin was 9.6%, up 50 basis points.
**Earnings Growth**Diluted earnings per share (EPS) increased by 24.2% to $10.16, with adjusted EPS up 13.4% to $10.58.
**Cash Generation**Operating cash flow was strong at $2.2 billion.
**Dividends and Share Repurchases**Declared dividends of $3.38 per share and repurchased $0.9 billion in shares, with $0.6 billion remaining under the current repurchase program.
**Acquisitions**Invested $276 million in eight acquisitions, adding annualized revenue of over $300 million.
**Balance Sheet Strength**Net debt to adjusted EBITDA ratio remained healthy at 1.1x.
**2026 Guidance**
**Net Sales**Low to mid-single digit growth.
**Adjusted Operating Margin**9.4% to 9.8%.
**Interest Expense**Approximately $200 million.
**Capital Expenditures**$350 to $400 million.
**Adjusted Effective Tax Rate**Around 26%.
**Strategic Focus**
Ferguson continues to focus on organic growth, strategic acquisitions, and returning capital to shareholders. The company is well-positioned to capitalize on long-term growth drivers in both residential and non-residential markets, particularly in water infrastructure, large capital projects, and climate & comfort solutions.
**Leadership Changes**
Brian Lantz, Vice President of Investor Relations and Communications, will retire on May 1, 2026. Pete Kennedy has been promoted to Vice President of Investor Relations, and Christine Dwyer to Vice President of Communications and Public Relations.
**Conclusion**
Ferguson delivered a strong performance in 2025, with continued market share gains and operational efficiency. The company remains optimistic about its growth prospects in 2026, supported by its scale-advantaged business model and strategic investments.
Hereโs an HTML table comparing the year-on-year financials and debt for Ferguson Enterprises Inc. based on the provided text:
### Key Highlights:
- **Net Sales**: Increased by 5.0% from $29.8 billion in 2024 to $31.3 billion in 2025. - **Gross Margin**: Improved by 70 basis points from 30.3% to 31.0%. - **Operating Profit**: Rose by 10.3% from $2.5 billion to $2.8 billion. - **Diluted Earnings per Share**: Surged by 24.2% from $8.18 to $10.16. - **Net Debt to Adjusted EBITDA**: Improved from 1.2x to 1.1x, indicating a stronger balance sheet. - **Capital Expenditures**: Increased by 7.9% from $328 million to $354 million. - **Dividends and Share Repurchases**: Both increased slightly, reflecting continued shareholder returns. This table provides a concise comparison of key financial metrics and debt levels between 2024 and 2025 for Ferguson Enterprises Inc.