Ferguson Enterprises Inc. has reported its third-quarter results, showing strong sales of $7.6 billion, a 4.3% increase from the previous year. This growth is attributed to a combination of organic revenue growth of 5.0% and acquisition growth of 1.0%, partially offset by the adverse impact of one fewer sales day and foreign exchange rates.
Gross margin increased by 50 basis points to 31.0% from the prior year, while operating margin reached 8.0% (9.4% on an adjusted basis). Diluted earnings per share stood at $2.07 ($2.50 on an adjusted basis), reflecting a 5% increase in quarterly dividends over the prior year.
Ferguson's balance sheet remains strong, with net debt to adjusted EBITDA at 1.2x. The company completed three acquisitions during the quarter and repurchased shares worth $251 million. Additionally, Ferguson declared a quarterly dividend of $0.83, representing a 5% increase over the prior year.
The company's financial position shows a net debt to adjusted EBITDA at 1.2x, with completed share repurchases of $251 million during the quarter and a remaining outstanding balance of approximately $1.1 billion under the current share repurchase program.
In the US, Ferguson's net sales increased by 4.5%, driven by organic revenue growth of 5.0% and a further 1.0% contribution from acquisitions, partially offset by a 1.5% adverse impact from one fewer sales day. Adjusted operating profit in the US was 6.0% or $41 million above the prior year.
In Canada, third-quarter net sales decreased by 0.3%, with organic revenue growth of 3.0% and a 2.8% contribution from acquisitions, partially offset by adverse impacts from foreign exchange rates and one fewer sales day. Adjusted operating profit in Canada was $8 million, $2 million above the prior year.
Ferguson also completed two US acquisitions during the quarter, further supporting the company's strategic initiatives.
The company's business restructuring efforts resulted in non-recurring charges of $68 million during the quarter, with expected annualized savings of approximately $100 million. These targeted actions are aimed at streamlining operations and driving further profitable growth.
Looking ahead, Ferguson has updated its full-year guidance to low to mid-single-digit revenue growth with an adjusted operating margin range of 8.5% to 9.0%. The company remains confident in its markets over the medium term and continues to balance investment in key strategic opportunities.
Today the company's shares have moved 15.65% to a price of $208.515. If you want to know more, read the company's complete 8-K report here.
