Q1 2026 Ferguson Enterprises Inc Earnings Call Transcript
Key Points
- Ferguson Enterprises Inc (FERG) reported a 5% increase in sales to $8.2 billion, driven by 4% organic growth and 1% acquisition growth.
- The company achieved a gross margin of 30.7%, which is a 60 basis point increase over the prior year.
- Operating profit grew by 14% to $808 million, with a 9.9% operating margin, reflecting an 80 basis point expansion.
- Diluted earnings per share increased by nearly 16% to $2.84, supported by operating profit growth and share repurchases.
- Ferguson Enterprises Inc (FERG) declared a 7% increase in its quarterly dividend to $0.89 per share, demonstrating confidence in its business outlook.
- Residential markets remain challenged, with new housing starts and permit activity weak, leading to a 1% decline in residential revenue.
- The HVAC segment declined by 6% due to weaker markets and the transition to new efficiency standards.
- The Canadian market remains subdued, particularly in residential, with operating profit down by $7 million compared to last year.
- Price inflation was approximately 3%, with commodity-related categories experiencing low single-digit declines.
- The company faces ongoing challenges in the new residential and HVAC markets, impacting growth expectations for the upcoming quarters.
Good morning ladies and gentlemen, my name is Harry and I will be your conference operator today. At this time, I would like to welcome you to the Ferguson results quarter ended October 31, 2025, conference call.
(Operator Instructions)
Thank you. I would now like to turn the call over to Mr. Brian Lantz, Ferguson's VP of Investor Relations and Communications. You may begin your conference call.
Good morning, everyone and welcome to Ferguson's quarterly earnings conference call and webcast. Hopefully, you've had a chance to review the earnings announcement we issued this morning.
The announcement is available in the Investors section of our corporate website and on our SEC filings web page. A recording of this call will be made available later today. I want to remind everyone that some of our statements today may be forward-looking and are subject to certain risks and uncertainties that could cause actual results to differ materially from
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