Ferguson Enterprises Inc. · NYSE:FERG
Ferguson Enterprises — Q1 2026 Earnings Presentation
22 slides from Ferguson Enterprises's earnings presentation, May 5, 2026
Slide 1: First Quarter Results Presentation
First Quarter Results Presentation Quarter Ended March 31, 2026
Slide 2: Legal Disclaimer: Forward-looking statements
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: Legal Disclaimer: Non-GAAP Financial Information
Legal Disclaimer Non-GAAP Financial Information This presentation contains certain financial information that is not presented in conformity with U.S. generally accepted accounting principles ("U.S. GAAP”). These non-GAAP financial measures include, but are not limited to, adjusted operating profit,
Slide 4: Introduction and Q1 Highlights
Introduction and Q1 Highlights Kevin Murphy, CEO
Slide 5: First quarter financial highlights
First quarter financial highlights Net sales +3.6% growth driven by market outperformance $7.5b Organic growth +2.8% +3.6% vs Q1 CY25 Acquisition growth +0.8% Adj. operating profit* Strong gross margin, productivity and disciplined cost management $647m Adjusted operating margin* of 8.7%, +40 bps +
Slide 6: Balanced approach to US end markets
Balanced approach to US end markets Three months ended March 31, % of US net sales* 2026 2025 US net sales growth/(decline) US net sales growth/(decline) Residential ~50% (1%) Flat Non-residential ~50% +8% +6% 100% +3.5% +3.1% * Residential / Non-residen tial pro portions d erived fro m manag ement
Slide 7: US first quarter net sales
US first quarter net sales Three months ended March 31, Customer group % of US net sales* 2026 2025 US net sales growth/(decline) US net sales growth/(decline) Waterworks 23% +5% +11% Commercial / Mechanical 16% +18% +9% Industrial 7% +10% +1% Facilities Supply 4% +3% (3%) Fire & Fabrication 3% (6%)
Slide 8: Financial Review
Financial Review Bill Brundage, CFO
Slide 9: First quarter financial highlights
First quarter financial highlights Three months ended March 31, $m (except per share amounts) 2026 2025 Change Net sales 7,472 7,213 +3.6% Gross margin 31.0% 30.7% +30 bps Adjusted operating profit* 647 597 +8.4% Adjusted operating margin* 8.7% 8.3% +40 bps Adjusted earnings per share – diluted* $2.
Slide 10: Segment financial highlights
Segment financial highlights Three months ended March 31, $m 2026 2025 Change Net sales US 7,146 6,904 +3.5% Canada 326 309 +5.5% Total net sales 7,472 7,213 +3.6% Adjusted operating profit* US 656 611 +7.4% Canada 5 6 (16.7%) Central and other costs (14) (20) Total adjusted operating profit 647 597
Slide 11: Cash flow – first quarter
Cash flow – first quarter Three months ended March 31, $m 2026 2025 Adjusted EBITDA* 711 651 Working capital 176 481 Interest and tax (100) (199) Other items (15) (59) Operating cash flow 772 874 Capex (92) (73) Proceeds from the sale of assets 8 12 Free cash flow* 688 813 * This is a non-GA AP me a
Slide 12: Capital allocation
Capital allocation 1. Organic growth 2. Acquisitions 3. Dividends 4. Surplus capital returns Working capital • Completed two acquisitions • Quarterly dividend of $0.89 • $236m share repurchases during the first per share completed in fiscal year to date • Inventory to support order volumes and growt
Slide 13: Calendar 2026 guidance (unchanged)
Calendar 2026 guidance (unchanged) Calendar 2026 Guidance January 1 – December 31, 2026 Net sales Low to mid-single digit growth Adjusted operating margin* 9.4% - 9.8% Interest expense ~$200m Capital expenditures ~$350 - 400m Adjusted effective tax rate* ~26% * This is a non-GAAP measure. See slide
Slide 14: Closing Remarks
Closing Remarks Kevin Murphy, CEO
Slide 15: Closing remarks
Closing remarks Thank you to our associates. • Our associates delivered solid results to start the year, as they continued to serve our customers and execute our strategy in a challenging market environment. • Our investments and focus on key growth initiatives continue to deliver market share gains
Slide 16: Join us for Q&A
Join us for Q&A
Slide 17: Appendix
Appendix
Slide 18: 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 March 31, (In millions) 2026 2025 Net income $414 $345 Provision for income taxes 146 124 Interest expense, net 45 46 Other expense (income), net 7 (8) Operating profit 612 507 Corporate restructuring ex
Slide 19: 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 20: 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 March 31, (In millions, except ratios) 2026 2025 Net income $2,075 $1,592 Provision for inco
Slide 21: Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS - Diluted
Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS - Diluted Three months ended March 31, (In millions, except per share amounts) 2026 2025 per share(1) per share(1) Net income $414 $2.13 $345 $1.73 Corporate restructuring activities(2) 2 0.01 — — Business restructuring activities(
Slide 22: Thank you
#4 FERGUSON a Thank you [4 /