Ferguson Enterprises Inc. · NYSE:FERG
Ferguson Enterprises — CY2025 Earnings Presentation
64 slides from Ferguson Enterprises's earnings presentation, February 2026
Slide 1: Results Presentation
Results Presentation Update on Market Opportunities and Strategy Period Ended December 31, 2025
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: Legal Disclaimer
Legal Disclaimer Important note regarding calendar year results reported in this presentation All historical calendar quarter and calendar year results contained in this presentation have not been audited and have been derived from the books and records of the Company. As such, these results have no
Slide 4: Introduction and CY2025 Highlights
Introduction and CY2025 Highlights Kevin Murphy, CEO
Slide 5: Calendar year 2025 financial highlights
Calendar year 2025 financial highlights $31.3B Net sales +5.0% vs. CY24 $3.0B Adj. operating profit* 9.6% Adj. operating margin* $10.58 Adj. EPS – diluted* +11.3% vs. CY24 +50bps vs. CY24 +13.4% vs CY24 $2.2B Operating cash flow $1.6B Shareholder returns** 8 Number of acquisitions 31.1% Return on ca
Slide 6: Balanced approach to US end markets
Balanced approach to US end markets Twelve months ended Twelve months ended % of US net sales* December 31, 2025 December 31, 2024 US net sales growth/(decline) US net sales growth/(decline) Residential ~50% Flat +1% Non-residential ~50% +11% +2% 100% +5.1% +1.4% * Residential / Non-residen tial pro
Slide 7: US net sales
US net sales Twelve months ended December 31, Customer group % of US net sales* 2025 2024 net sales growth/(decline) net sales growth/(decline)** Waterworks 23% +13% +5% Ferguson Home 21% +1% (4%) Residential Trade Plumbing 15% (3%) Flat HVAC 12% (1%) +10% Commercial / Mechanical 15% +18% +5% Fire &
Slide 8: Financial Review
Financial Review Bill Brundage, CFO
Slide 9: CY2025 financial highlights
CY2025 financial highlights Twelve months ended December 31, $m (except per share amounts) 2025 2024 Change Net sales 31,316 29,818 +5.0% Gross margin 31.0% 30.3% +70 bps Adjusted operating profit* 3,011 2,705 +11.3% Adjusted operating margin* 9.6% 9.1% +50 bps Adjusted earnings per share – diluted*
Slide 10: CY2025 Fourth quarter financial highlights
CY2025 Fourth quarter financial highlights Three months ended December 31, $m (except per share amounts) 2025 2024 Change Net sales 7,495 7,234 +3.6% Gross margin 30.6% 29.7% +90 bps Adjusted operating profit* 625 549 +13.8% Adjusted operating margin* 8.3% 7.6% +70 bps Adjusted earnings per share –
Slide 11: US net sales
US net sales Three months ended December 31, Customer group % of US net sales* 2025 2024 net sales growth/(decline) net sales growth/(decline)** Waterworks 24% +9% +10% Ferguson Home 21% Flat (1%) Residential Trade Plumbing 15% (4%) (1%) HVAC 11% (7%) +16% Commercial / Mechanical 15% +18% +5% Fire &
Slide 12: Cash flow – Full year
Cash flow – Full year Twelve months ended December 31, $m 2025 2024 Adjusted EBITDA* 3,243 2,905 Working capital (294) (106) Interest and tax (763) (759) Other items (5) 31 Operating cash flow 2,181 2,071 Capex (354) (328) Proceeds from the sale of assets 92 17 Free cash flow* 1,919 1,760 * This is
Slide 13: Calendar 2026 guidance
Calendar 2026 guidance Calendar 2026 Guidance January 1 – December 31, 2026 Low to mid-single Net sales 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 3 of this pre
Slide 14: Market opportunities and strategy
Market opportunities and strategy
Slide 15: Who we are
Who we are Our balanced market exposure CY25 Ferguson is North America’s largest $31.3B value-added distributor of essential ~1/2 ~1/2 Net sales Non-residential Residential water and air solutions, serving $3.0B specialized professionals in Adjusted operating profit* our $340B residential and non- ~
Slide 16: Essential water and air solutions
Essential water Industrial pipe, Commercial plumbing Mechanical room solutions Residential rough and finished plumbing and air solutions valves and fittings Fire protection Commercial HVAC Fire protection Residential HVAC Appliances and lighting Water and wastewater treatment Geosynthetics Soil stab
Slide 17: Suppliers, customers and footprint
~37K ~1M Suppliers Customers 1M+ 1,700+ ~60M ft² 6,000+ ~35K Products Locations Footprint Fleet vehicles Associates Highly-fragmented market 10,000+ small to midsized competitors 17 For additional information and footnotes, refer to a ppendix
Slide 18: ~1M Customers and skilled trades shortage
With the growing shortage of skilled trades professionals ~1M Customers 33.5% Construction employment growth from 2014 to 2024 92% Of construction firms ~649K Average job openings per year through 2034 41% Of the construction report difficulty filling workforce will retire skilled trades positions b
Slide 19: People, products and solutions
People, products and solutions Continual network optimization ~60M ft2 total footprint When and where our customers need them 1,700+ locations 6,000+ fleet vehicles Branch Best breadth and depth Market Distribution Center 1M+ products Regional Distribution Center Import Center 37K+ suppliers Own Bra
Slide 20: Multi-customer group approach
Multi-customer $35B Market $30B Market group approach Waterworks $7.5B Revenue Commercial / Mechanical $5B Revenue We engage early with owners, engineers and general contractors $30B Market $40B Market to deliver project success across Residential multiple trades Trade $5B Revenue Industrial $2B Rev
Slide 21: Driving construction productivity for the specialized professional
Driving construction productivity for the specialized professional Value-added solutions 60+ Virtual design and construction 40+ Fabrication locations 25+ Strategically located ~24% Of revenue engineers delivering across the country with valve automation centers transacted digitally ~1,000 projects
Slide 22: Structural trends
Structural trends Large capital Water Climate Aging and projects infrastructure and comfort underbuilt housing 22
Slide 23: Large capital projects
Large capital Ferguson brings projects • Early engagement with owners, developers and general contractors We are in a multi-year build out of • Expert associates including dedicated large large-scale technology, infrastructure capital projects teams and manufacturing construction • Multi-customer gr
Slide 24: Hyperscale data center
CASE STUDY Hyperscale data center • Won with hyperscaler because of our multi-customer group capabilities • Led development of build strategy for liquid cooling assemblies • Partnered with customer on virtual design and modeling • Offsite fabrication with cutting-edge automated/robotic technology •
Slide 25: Water infrastructure
Water Ferguson brings infrastructure Early engagement with public and private utilities and engineers 49 years Expertise from pre-bid to post-sale Average age of US water pipe • Project management • Digital estimation and value engineering • Local specification knowledge • Design-build capabilities
Slide 26: Climate and comfort
Climate Ferguson brings and comfort 650+ full-service dual-trade HVAC and plumbing locations Broad access to multiple equipment lines, parts and supplies 14% increase in cooling degree days since 2000 Technical training and expertise 98% Digital tools and solutions Of new single-family homes in 2024
Slide 27: Aging and underbuilt housing
Aging and Ferguson brings underbuilt housing Multi-customer group approach • Waterworks: Water, wastewater, stormwater, metering and erosion control 2.8M • Residential Trade: Rough and finished plumbing and water heaters • Ferguson Home: Finished plumbing, lighting and appliances Current housing sho
Slide 28: Scale, structural trends and strong financial performance
Scale deployed locally Structural trends Strong financial performance • Multi-customer group approach • Large capital projects • Above-market organic growth • World-class supply chain • Value-added solutions & digital tools + • Water infrastructure • Climate and comfort = • Margin expansion • Cash g
Slide 29: Long-term track record of financial outperformance
Long-term track record of $31.3B financial outperformance $3.0B 9.6% $14.2B $1.1B 7.5% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 CY25 Revenue (US and Canada) Adjusted Operating Profit* (US, Canada and Central Costs) 2015-2025** Revenue Adjusted operating profit* Adjusted operating margi
Slide 30: Strong cash generation ($B)
Strong cash generation ($B) 107% 5-year ratio of operating cash flow to adjusted net income* $2.7 $2.1 $2.0 $2.0 $1.9 $2.0 $1.9 $2.1 $2.2 $1.5 $1.3 $1.1 FY21 FY22 FY23 FY24 FY25 CY25 Adjusted net income** Operating cash flow (continuing operations) 30 * Ratio of op erating ca sh to adjuste d n et
Slide 31: Disciplined capital deployment
Disciplined capital deployment 1. Invest in above- 2. Invest in bolt-on 3. Sustainably 4. Return surplus market organic growth geographic and grow our dividend capital to shareholders capability acquisitions ~$12B capital deployed over past 5 years* Invested in capex Invested in M&A $1.6B $2.1B Retu
Slide 32: Accretive acquisitions
Accretive acquisitions Geographic acquisitions Over the last five fiscal years • Consolidating fragmented markets 10,000+ • Associate expertise • Customer relationships Total market competitors 50+ Acquisitions made in • Leveraging market-leading ~1,500 the last five fiscal years capabilities Compet
Slide 33: Driving continued long-term growth
Driving continued long-term growth 2-4% 3-4% 1-3% 6-11% Market growth Over-market growth Acquisition growth Annual sales Our markets have historically outgrown GDP due to structurally + Market-leading capabilities drive consistent outperformance + Further consolidating fragmented markets = growth ex
Slide 34: Driving sustainable margin expansion
Driving sustainable margin expansion Pricing Products People Supply chain • Analytics-guided project • Strategic vendor • Project-based tools for sales, • Investment in distribution bids and quotes partnerships operations and supply chain network to lower cost-to-serve • Dynamic pricing tailored • H
Slide 35: Continued growth and improvement
Continued growth and improvement 5-year history** Long-term expected outlook Revenue ~9% 6-11% Flowthrough ~12% 11-14% Adjusted operating margin* expansion Avg. ~20 bps / year 10-30 bps / year Ratio of operating cash to adjusted net income* 107% ~100% Adjusted diluted earnings per share* growth ~15%
Slide 36: Our next milestone
Our next milestone CY25 Large, fragmented and Medium-term growing markets Expected outlook $31B Revenue Scale deployed locally $40B+ Revenue $3B Adjusted operating profit* Capitalizing on $4B+ structural trends Adjusted operating profit* 9.6% Disciplined capital Adjusted operating margin* allocation
Slide 37: Why Ferguson
North America’s largest value-added distributor of essential water and air solutions Operating in large, fragmented and growing markets Why Leveraging scale with unique multi-customer group approach, world class supply chain, value-added Ferguson solutions and expert associates Capitalizing on long-
Slide 38: Appendix
Appendix
Slide 39: Earnings reconciliations
Ce Earnings reconciliations
Slide 40: 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 December 31, Twelve months ended December 31, (In millions) 2025 2024 2025 2024 Net income $389 $356 $2,006 $1,651 Provision for income taxes 145 109 578 695 Interest expense, net 48 48 190 179 Other exp
Slide 41: 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 42: 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 December 31, (In millions, except ratios) 2025 2024 Net income $2,006 $1,651 Provision for i
Slide 43: Return on Capital Employed
Return on Capital Employed As of December 31, (In millions) 2025 Average net debt(1) $3,441 Average stockholders' equity(2) 5,751 Average capital employed 9,192 Return on capital employed (ROCE)(3) 31.1% 1. Management employs the following averaging method: net debt is on a rolling four quarter aver
Slide 44: 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 December 31, Twelve months ended December 31, (In millions, except 2025 2024 2025 2024 per share amounts) per share(1) per share(1) per share(1) per share(1) Net income $389 $1.99 $356 $1.78 $2,006 $10.
Slide 45: Historical Calendar Year Results
Historical Calendar Year Results
Slide 46: Calendar Year Financial Highlights
Calendar Year Financial Highlights Three months ended Twelve months ended US$ (In millions, except March 31, 2024 June 30, 2024 Sept, 30, 2024 Dec. 31, 2024 Dec. 31, 2024 per share amounts) Net sales 7,001 7,847 7,736 7,234 29,818 Gross profit 2,147 2,352 2,397 2,148 9,044 Gross margin 30.7% 30.0% 3
Slide 47: Calendar Year Financial Highlights
Calendar Year Financial Highlights Three months ended Twelve months ended US$ (In millions, except March 31, 2025 June 30, 2025 Sept. 30, 2025 Dec. 31, 2025 Dec. 31, 2025 per share amounts) Net sales 7,213 8,363 8,245 7,495 31,316 Organic revenue growth 3.8% 5.5% 5.5% 3.0% 4.5% Gross profit 2,216 2,
Slide 48: Calendar Year Segment Results
Calendar Year Segment Results Three months ended Twelve months ended US$ (In millions) March 31, 2025 June 30, 2025 Sept. 30, 2025 Dec. 31, 2025 Dec. 31, 2025 Net sales: USA 6,904 7,947 7,821 7,135 29,807 Canada 309 416 424 360 1,509 Total net sales 7,213 8,363 8,245 7,495 31,316 Adjusted operating
Slide 49: 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 Twelve months ended US$ (In millions) March 31, 2025 June 30, 2025 Sept. 30, 2025 Dec. 31, 2025 Dec. 31, 2025 Net income $345 $634 $638 $389 $2,006 Provision for income taxes 124 156 153 145 578 Interest
Slide 50: Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS-Diluted
Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS-Diluted Three months ended Twelve months ended March 31, 2025 June 30, 2025 Sept. 30, 2025 Dec. 31, 2025 Dec. 31, 2025 US$ (In millions, except per share amounts) per share(1) per share(1) per share(1) per share(1) per share(1) Net
Slide 51: 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 52: 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 2025 2024 2025 2024 Net sales $7,213 $7,001 $8,363 $7,847 $8,245 $7,736 $7,495 $7,234 $
Slide 53: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet As of December 31, (In millions) 2025 2024 Assets Cash and cash equivalents $557 $722 Accounts receivable, net 3,312 3,160 Inventories 4,588 4,363 Prepaid and other current assets 1,031 970 Assets held for sale 48 26 Total current assets 9,536 9,241 Property, pla
Slide 54: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows Twelve months ended Twelve months ended (In millions) Dec. 31, 2025 Dec. 31, 2024 Cash flows from operating activities: Net income $2,006 $1,651 Other operating activities 175 420 Net cash provided by operating activities 2,181 2,071 Cash flows from in
Slide 55: Footnotes to Market Update and Strategy section
Footnotes to Market Update and Strategy section
Slide 56: Notes
Notes All information is as of December 31, 2025 unless otherwise indicated Slide 15 | Our balanced market exposure 1. Residential/Non-residential proportion and RMI/New construction proportion are approximate and derived from management estimates as of CY2025 Slide 17 | Our business model 1. 10,000
Slide 57: Notes
Notes Slide 25 | Water infrastructure 1. 49 years - Average age of US water pipe | Center for Sustainable Systems, University of Michigan. 2025. "U.S. Water Supply and Distribution Factsheet." Pub. No. CSS05 -17 2. >$1T - Expected investment needed for drinking water and clean water infrastructure o
Slide 58: Reconciliations to Market Update and Strategy section
Reconciliations to Market Update and Strategy section
Slide 59: Reconciliation of Net Income to Adjusted Operating Profit
Reconciliation of Net Income to Adjusted Operating Profit Twelve months ended December 31, (In millions) 2025 Net income $2,006 Provision for income taxes 578 Interest expense, net 190 Other expense, net 15 Operating profit 2,789 Restructuring activities(1) 74 Adjusted EBIT 2,863 Amortization of acq
Slide 60: Return on Capital Employed
Return on Capital Employed As of December 31, (In millions) 2025 Average net debt(1) $3,441 Average stockholders' equity(2) 5,751 Average capital employed 9,192 Return on capital employed (ROCE)(3) 31.1% 1. Management employs the following averaging method: net debt is on a rolling four quarter aver
Slide 61: Net Debt
Net Debt Net debt comprises bank overdrafts, bank and other loans and derivative financial instruments, excluding lease liabilities, less cash and cash equivalents. March 31, June 30, Sept. 30, Dec. 31, US$ (In millions) 2025 2025 2025 2025 Debt 3,908 3,989 4,129 4,128 Cash and cash equivalents (596
Slide 62: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income to Adjusted Net Income Twelve months Twelve months ended July 31, ended December 31, (In millions) 2021 2022 2023 2024 2025 2025 Net income $1,472 $2,122 $1,889 $1,735 $1,856 $2,006 Loss (income) from discontinued 158 (23) - - - - operations (net of tax) Income from cont
Slide 63: Thank you
#4 FERGUSON a Thank you [4 /
Slide 64: FERGUSON
44 FERGUSON