Ferguson Enterprises Inc. · NYSE:FERG
Ferguson Enterprises — Q1 2025 Earnings Presentation
22 slides from Ferguson Enterprises's earnings presentation, Dec 10, 2024
Slide 1: First Quarter Results Presentation
First Quarter Results Presentation Results to October 31, 2024 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: First quarter financial highlights
First quarter financial highlights Q1 Net sales ($m) Q1 Adjusted operating profit* ($m) Q1 Adjusted EPS – diluted* 7,931 7,708 7,772 $2.95 864 $2.65 6,803 767 773 $2.50 $2.45 706 5,372 484 $1.52 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 Solid performance despite mark
Slide 5: Balanced approach to US end markets
Balanced approach to US end markets Q1 2025 Q1 2024 % of US net US net sales US net sales sales* growth/(decline) growth/(decline) Residential 51% Flat (7%) Non-residential 49% +1% +2% Commercial 34% Flat +2% Civil/Infrastructure 8% +3% (1%) Industrial 7% +4% +3% 100% +0.5% (2.7%) * Residential / No
Slide 6: USA first quarter net sales
USA first quarter net sales Q1 2025 Q1 2024 % of US net Customer group net sales net sales sales* growth/(decline) growth/(decline) Residential Trade Plumbing 17% +1% (12%) HVAC 12% +10% +4% Residential Building and Remodel 14% (1%) (3%) Residential Digital Commerce 7% (8%) (14%) Waterworks 22% +3%
Slide 7: Financial review
02 Financial review Bill Brundage, CFO 7
Slide 8: First quarter financial highlights
First quarter financial highlights $m (except per share amounts) Q1 2025 Q1 2024 Change Net sales 7,772 7,708 +0.8% Gross margin 30.1% 30.2% (10 bps) Adjusted operating profit* 706 773 (8.7%) Adjusted operating margin* 9.1% 10.0% (90 bps) Adjusted earnings per share – diluted* $2.45 $2.65 (7.5%) Adj
Slide 9: Segment financial highlights
Segment financial highlights $m Q1 2025 Q1 2024 Change Net sales US 7,369 7,329 +0.5% Canada 403 379 +6.3% Total net sales 7,772 7,708 +0.8% Adjusted operating profit* US 697 766 (9.0%) Canada 23 23 Flat Central and other costs (14) (16) Total adjusted operating profit 706 773 (8.7%) * The Company u
Slide 10: Cash flow – first quarter
Cash flow – first quarter $m Q1 2025 Q1 2024 Adjusted EBITDA* 758 819 Working capital (376) (219) Interest and tax (74) (79) Other items 37 36 Operating cash flow 345 557 Capex (77) (91) Proceeds from the sale of assets 6 7 Free cash flow* 274 473 * This is a non-GA AP me asu re. Se e the app endix
Slide 11: 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 • $256m share repurchases per share, an increase of 5% during the first quarter and completed during first quarter • Inventory positi
Slide 12: FY2025 Guidance (unchanged)
FY2025 Guidance (unchanged) • 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
Slide 13: Closing remarks
03 Closing remarks Kevin Murphy, CEO •Kevin Murphy, CEO
Slide 14: Closing remarks
Closing remarks Thank you to our associates. 1. Disciplined execution from our teams to deliver revenue growth and market outperformance despite ongoing market headwinds and commodity price deflation. 2. Strong balance sheet positions us well as we continue to invest in the business. 3. We remain co
Slide 15: Join us for Q&A
Join us for Q&A |e
Slide 16: Appendix
04 Appendix # FERGUSON
Slide 17: 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 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 October 31, (In millions) 2024 2023 2022 2021 2020 Net income $470 $519 $595 $560 $335 Income from discontinued operations (net of tax) — — — (25) (19) Income from continuing operations 470 519 595 535 3
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 (In millions) October 31, 2024 2023 Net income $1,686 $1,813 Provision for income taxes 711
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 October 31, 2024 2023 2022 2021 2020 (In millions, except per share amounts) per share(1) per share(1) per share(1) per share(1) per share(1) Net income $470 $2.34 $519 $2.54 $595 $2.84 $560 $2.51 $335
Slide 22: Thank you
#4 FERGUSON Thank you