Slide 1: Second Quarter Results Presentation
Second Quarter Results Presentation Results to January 31, 2025 1
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 3
Slide 4: Second quarter financial highlights
Second quarter financial highlights Net sales • Growth driven by market outperformance $6.9b • Sales volume +5%, partially offset by continued deflation of ~2% +3% vs Q2 2024 Adj. operating profit* • Subdued end market demand and persistent deflation $449m • Adjusted operating margin* of 6.5% (13.7)
Slide 5: Balanced approach to US end markets
Balanced approach to US end markets Q2 2025 Q2 2024 % of US net US net sales US net sales sales* growth/(decline) growth/(decline) Residential 51% +2% (4%) Non-residential 49% +4% (1%) Commercial 34% +3% Flat Civil/Infrastructure 8% +9% Flat Industrial 7% +1% (6%) 100% +3.0% (2.2%) * Residential/Non
Slide 6: US Second quarter net sales
US Second quarter net sales Q2 2025 Q2 2024 % of US net Customer group net sales net sales sales* growth/(decline) growth/(decline) HVAC 12% +17% +1% Residential Trade Plumbing 17% Flat (2)% Residential Building and Remodel 14% +1% (4)% Residential Digital Commerce 7% (7)% (13)% Waterworks 22% +10%
Slide 7: Growth focus
Growth focus HVAC Waterworks Large capital projects Ferguson Home • Counter expansion • Address the nation's aging • Multi-customer group • Best-in-class omnichannel infrastructure approach experience • Geographic organic expansion • Generate more complete, • Up-funnel partnerships • Unified brand t
Slide 8: Financial review
02 Financial review Bill Brundage, CFO 8
Slide 9: Second quarter financial highlights
Second quarter financial highlights $m (except per share amounts) Q2 2025 Q2 2024 Change Net sales 6,872 6,673 +3.0% Gross margin 29.7% 30.4% (70) bps Adjusted operating profit* 449 520 (13.7)% Adjusted operating margin* 6.5% 7.8% (130) bps Adjusted earnings per share – diluted* $1.52 $1.74 (12.6)%
Slide 10: Segment financial highlights
Segment financial highlights $m Q2 2025 Q2 2024 Change Net sales US 6,553 6,364 +3.0% Canada 319 309 +3.2% Total net sales 6,872 6,673 +3.0% Adjusted operating profit* US 455 525 (13.3)% Canada 11 9 +22.2% Central and other costs (17) (14) Total adjusted operating profit 449 520 (13.7)% * The Compan
Slide 11: Half year financial highlights
Half year financial highlights $m (except per share amounts) H1 2025 H1 2024 Change Net sales 14,644 14,381 +1.8% Gross margin 29.9% 30.3% (40) bps Adjusted operating profit* 1,155 1,293 (10.7)% Adjusted operating margin* 7.9% 9.0% (110) bps Adjusted earnings per share – diluted* $3.98 $4.40 (9.5)%
Slide 12: Cash flow – Half year
Cash flow – Half year $m H1 2025 H1 2024 Adjusted EBITDA* 1,260 1,387 Working capital (200) (113) Interest and tax (385) (427) Other items 10 16 Operating cash flow 685 863 Capex (158) (192) Proceeds from the sale of assets 18 28 Free cash flow* 545 699 * This is a non-GA AP me asu re. Se e the app
Slide 13: Capital allocation
Capital allocation 1. Organic growth 2. Dividends 3. Acquisitions 4. Surplus capital returns Working capital • Quarterly dividend of $0.83 • Completed one acquisition • $508m share repurchases per share, an increase of 5% during the second quarter and completed during first half • Inventory position
Slide 14: FY2025 Guidance (revised)
FY2025 Guidance (revised) • Net sales to be low single digit growth • Assumes our markets are down low single digits, inclusive of pricing slightly down for the year. • We assume continued Company market outperformance and contribution from already completed acquisitions… • …offset in part by one fe
Slide 15: Closing remarks
03 Closing remarks Kevin Murphy, CEO •Kevin Murphy, CEO
Slide 16: Closing remarks
Closing remarks Thank you to our associates. 1. Solid execution from our teams, delivering revenue growth and continued market outperformance despite subdued end market demand and persistent deflation. 2. We are taking certain near-term actions to increase speed and efficiency to better serve our cu
Slide 17: Join us for Q&A
Join us for Q&A |e
Slide 18: Appendix
04 Appendix # FERGUSON
Slide 19: Leading positions in highly fragmented North American markets
Leading positions in highly fragmented North American markets Residential Trade Plumbing HVAC $30b market 18% Share #2 Market Position ~$70b 5% Share $30b revenue with a market #3 Market Position Residential Building and Remodel $23b $29b market 9% Share 14% Share #1 Market Position ~$340b market op
Slide 20: 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 Six months ended January 31, January 31, (In millions) 2025 2024 2025 2024 Net income $276 $322 $746 $841 Provision for income taxes 94 111 248 283 Interest expense, net 48 44 94 89 Other (income) expens
Slide 21: 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 t
Slide 22: 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) January 31, 2025 2024 Net income $1,640 $1,761 Provision for in
Slide 23: 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 Six months ended January 31, January 31, 2025 2024 2025 2024 (In millions, except per share amounts) per share(1) per share(1) per share(1) per share(1) Net income $276 $1.38 $322 $1.58 $746 $3.72 $841 $4
Slide 24: Thank you
#4 FERGUSON Thank you