Ferguson Enterprises has recently released its 10-Q report, providing a detailed insight into its operational and financial performance for the three and nine months ended April 30, 2025. The company is a value-added distributor serving the specialized professional in the residential and non-residential North American construction market. It provides expertise and a wide range of products and services from plumbing, HVAC, appliances, and lighting to PVF, water and wastewater solutions, and more.
In the third quarter of fiscal 2025, Ferguson's net sales increased by 4.3% compared to the same period in fiscal 2024, reaching $7.6 billion. Operating profit decreased by 3.0% compared to the third quarter of fiscal 2024, primarily due to $70 million in non-recurring restructuring expenses, partially offset by higher gross profit. Diluted earnings per share for the same period was $2.07, decreasing by 5.0% compared to the third quarter of fiscal 2024. Net cash provided by operating activities decreased to $1.4 billion in the year-to-date period of fiscal 2025 compared with $1.5 billion in the same period of fiscal 2024.
The company's gross profit in the third quarter of fiscal 2025 increased by 5.7% compared with the same period in fiscal 2024, primarily reflecting increased net sales. Selling, general and administrative expenses increased by 5.2% in the third quarter of fiscal 2025 compared with the same period in fiscal 2024. The company recorded non-recurring business restructuring expenses of $68 million during the third quarter of fiscal 2025.
Ferguson's net sales for the United States segment were $7.3 billion in the third quarter of fiscal 2025, an increase of 4.5% compared to the same period in fiscal 2024. Adjusted operating profit for the United States segment was $726 million in the third quarter of fiscal 2025, an increase of 6.0% compared to the same period in fiscal 2024. In the Canada segment, net sales for the third quarter of fiscal 2025 decreased by 0.3% compared to the same period in fiscal 2024, while adjusted operating profit increased by $2 million compared to the same period in fiscal 2024.
The company uses certain non-GAAP measures, including adjusted operating profit and adjusted earnings per share, to provide users with additional meaningful information to understand financial results and assess performance. These measures exclude items that may not be indicative of the company's core operating results and provide a better baseline for analyzing trends. The company encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. The market has reacted to these announcements by moving the company's shares 15.65% to a price of $208.515. For more information, read the company's full 10-Q submission here.
