Ferguson Enterprises Inc. · NYSE:FERG
Ferguson Enterprises — Q1 2026 Earnings Presentation
30 slides from Ferguson Enterprises's earnings presentation, Dec 9, 2025
Slide 1: Quarter Ended October 31, 2025 Results Presentation
Quarter Ended October 31, 2025 Results Presentation
Slide 2: Legal Disclaimer
Legal Disclaimer Cautionary note on forward-looking statements Certain information included in this presentation and discussed on the conference call that this presentation accompanies is forward-looking, including within the meaning of the Private Securities Litigation Reform Act of 1995, and invol
Slide 3: Highlights and introduction
01 Highlights and introduction Kevin Murphy, CEO
Slide 4: Quarter ended October 31, 2025 financial highlights
Quarter ended October 31, 2025 financial highlights Net sales Growth driven by consistent market outperformance $8.2b Organic growth +4.2% +5.1% vs 2024 Acquisition growth +1.0% less 0.1% from FX and other Adj. operating profit* Solid gross margin and disciplined cost management $808m Adjusted oper
Slide 5: Balanced approach to US end markets
Balanced approach to US end markets Three months Three months ended October ended October % of US net 31, 2025 31, 2024 sales* US net sales US net sales growth/(decline) growth/(decline) Residential 50% (1%) Flat Non-residential 50% +12% +1% 100% +5.3% +0.5% * Residential / Non-residen tial pro port
Slide 6: US net sales
US net sales Three months ended October 31, 2025 2024 % of US Customer group net sales net sales net sales* growth/(decline) growth/(decline)** Waterworks 25% +14% +3% Ferguson Home 21% +1% (3%) Residential Trade Plumbing 14% (4%) +1% HVAC 11% (6%) +9% Commercial / Mechanical 15% +21% +1% Fire & Fab
Slide 7: Financial review
02 Financial review Bill Brundage, CFO
Slide 8: Financial highlights
Financial highlights Three months ended October 31, $m (except per share amounts) 2025 2024 Change Net sales 8,169 7,772 +5.1% Gross margin 30.7% 30.1% +60 bps Adjusted operating profit* 808 706 +14.4% Adjusted operating margin* 9.9% 9.1% +80 bps Adjusted earnings per share – diluted* $2.84 $2.45 +1
Slide 9: Segment financial highlights
Segment financial highlights Three months ended October 31, $m 2025 2024 Change Net sales US 7,757 7,369 +5.3% Canada 412 403 +2.2% Total net sales 8,169 7,772 +5.1% Adjusted operating profit* US 806 697 +15.6% Canada 16 23 (30.4%) Central and other costs (14) (14) Total adjusted operating profit 80
Slide 10: Cash flow
Cash flow Three months ended October 31, $m 2025 2024 Adjusted EBITDA* 867 758 Working capital (440) (376) Interest and tax (84) (74) Other items 87 37 Operating cash flow 430 345 Capex (118) (77) Proceeds from the sale of assets 13 6 Free cash flow* 325 274 * This is a non-GA AP me asu re. Se e the
Slide 11: Capital allocation
Capital allocation 1. Organic growth 2. Dividends 3. Acquisitions 4. Surplus capital returns Working capital • Paid $164m of dividends • Completed one acquisition • $208m share repurchases during the quarter during the quarter completed during the quarter • Inventory to support order volumes and gro
Slide 12: Calendar 2025 Guidance
Calendar 2025 Guidance Updated Calendar 2025 Guidance Prior Calendar 2025 Guidance January 1 – December 31, 2025 January 1 – December 31, 2025 Net sales ~5% growth Mid-single digit growth Adjusted operating margin* 9.4% - 9.6% 9.2% - 9.6% Interest expense ~$190m $180 - $200 million Capital expenditu
Slide 13: Closing Remarks
03 Closing Remarks Kevin Murphy, CEO
Slide 14: Closing remarks
Closing remarks Thank you to our associates. 1. Our teams continue to execute our growth strategy in a challenging market environment. 2. We are pleased with another quarter of double-digit non-residential revenue growth. 3. We are poised to deliver a strong calendar 2025 performance. 4. Strong bala
Slide 15: Join us for Q&A
Join us for Q&A
Slide 16: Appendix
04 Appendix FERGUSON
Slide 17: Reconciliation of Net Income to Adjusted Operating Profit and Adjusted EBITDA
Reconciliation of Net Income to Adjusted Operating Profit and Adjusted EBITDA Three months ended October 31, (In millions) 2025 2024 Net income $570 $470 Provision for income taxes 142 154 Interest expense, net 46 46 Other (income) expense, net 13 (5) Operating profit 771 665 Corporate restructuring
Slide 18: Net Debt : Adjusted EBITDA reconciliation
Net Debt : Adjusted EBITDA reconciliation Net debt comprises bank overdrafts, bank and other loans and derivative financial instruments, excluding lease liabilities, less cash and cash equivalents. Long-term debt is presented net of debt issuance costs. A rolling 12-month adjusted EBITDA is used in
Slide 19: Adjusted EBITDA (rolling 12-month) reconciliation
Adjusted EBITDA (rolling 12-month) reconciliation Adjusted EBITDA is net income before charges/credits relating to depreciation, amortization, impairment and certain non-GAAP adjustments. Twelve months ended (In millions, except ratios) October 31, 2025 2024 Net income $1,956 $1,686 Provision for in
Slide 20: Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS
Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS - Diluted Three months ended October 31, 2025 2024 (In millions, except per share amounts) per share(1) per share(1) Net income $570 $2.90 $470 $2.34 Corporate restructuring expenses(2) 2 0.01 3 0.01 Amortization of acquired intang
Slide 21: Historical Calendar Year Results
Disclaimer: All historical calendar year results contained in this presentation 05 Historical Calendar Year Results are unaudited, preliminary and subject to change. Accordingly, such information may be presented differently in future filings with the SEC. In addition, the Company is presenting sele
Slide 22: Calendar Year Financial Highlights
Calendar Year Financial Highlights Three months ended US$ (In millions, except per share amounts) March 31, 2025 June 30, 2025 September 30, 2025 * This is a non-GAAP measure. See slides 24 to 25 for more information and a reconciliation of the non-GAAP measure to the most comparable U.S. GAAP measu
Slide 23: Calendar Year Segment Results
Calendar Year Segment Results Three months ended US$ (In millions) March 31, 2025 June 30, 2025 September 30, 2025 Net sales: USA 6,904 7,947 7,821 Canada 309 416 424 Total net sales 7,213 8,363 8,245 Adjusted operating profit*: USA 611 899 875 Canada 6 23 22 Central and other costs (20) (16) (14) T
Slide 24: Reconciliation of Net Income to Adjusted Operating Profit and Adjusted EBITDA
Reconciliation of Net Income to Adjusted Operating Profit and Adjusted EBITDA Three months ended US$ (In millions) March 31, 2025 June 30, 2025 September 30, 2025 Net income $345 $634 $638 1. For periods presented in 2025, restructuring expenses primarily related to the Company’s implementation of t
Slide 25: Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS
Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS-Diluted Three months ended March 31, 2025 June 30, 2025 September 30, 2025 US$ (In millions, except per share amounts) per share (1) per share (1) per share (1) Net income $345 $1.73 $634 $3.21 $638 $3.24 Restructuring expenses(2)
Slide 26: Net Debt: Adjusted EBITDA Reconciliation
Net Debt: Adjusted EBITDA Reconciliation Net debt comprises bank overdrafts, bank and other loans and derivative financial instruments, excluding lease liabilities, less cash and cash equivalents. A rolling 12-month adjusted EBITDA is used in the net debt to adjusted EBITDA ratio to assess the appro
Slide 27: Condensed Consolidated Statement of Earnings
Condensed Consolidated Statement of Earnings Three months ended Twelve months ended March 31, June 30, September 30, December 31, December 31, (In millions, except per share amounts) 2025 2024 2025 2024 2025 2024 2024 2024 Net sales $7,213 $7,001 $8,363 $7,847 $8,245 $7,736 $7,234 $29,818 Cost of sa
Slide 28: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet As of September 30, December 31, (In millions) 2025 2024 Assets Cash and cash equivalents $832 $722 Accounts receivable, net 3,841 3,160 Inventories 4,751 4,363 Prepaid and other current assets 1,010 970 Assets held for sale 45 26 Total current assets 10,479 9,24
Slide 29: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows Nine months ended Twelve months ended September 30, 2025 December 31, 2024 (In millions) Cash flows from operating activities: Net income $1,617 $1,651 Other operating activities 267 420 Net cash provided by operating activities 1,884 2,071 Cash flows
Slide 30: Thank You
Thank You FERGUSON