Ferguson Enterprises Inc. has reported a strong finish to the year, with fourth-quarter sales of $8.5 billion, marking a 6.9% increase from the previous year. The company's gross margin improved to 31.7%, up 70 basis points (bps) from the prior year, and operating margin also increased to 10.9%, up 70 bps from the prior year. Diluted earnings per share stood at $3.55, representing a significant 59% increase from the previous year.
For the full year, sales were $30.8 billion, reflecting a 3.8% increase, with gross margin at 30.7%, up 20 bps from the prior year. Operating margin, however, decreased to 8.5%, down 40 bps from the prior year. Diluted earnings per share for the full year reached $9.32, marking a 9.3% increase from the previous year.
The company also made significant investments, including $301 million in nine acquisitions, and generated around $300 million in annualized revenue from these acquisitions. Additionally, share repurchases amounted to $948 million during the year, with an outstanding balance of approximately $1.0 billion remaining under the current share repurchase program at July 31, 2025. The balance sheet remains strong, with net debt to adjusted EBITDA at 1.1x.
In the USA, fourth-quarter net sales grew by 7.1%, with organic revenue growth of 6.1% and a further 1.0% from acquisitions. Adjusted operating profit in the USA reached $962 million, marking a 14.0% increase from the prior year. The company completed four acquisitions during the quarter, including HPS Specialties, LLC, Ritchie Environmental Solutions, LLC, Manufactured Duct & Supply Company, and Water Resources, Inc.
The company's net debt to adjusted EBITDA at July 31, 2025, was 1.1x, and it invested $0.3 billion in capital expenditures, paid $0.5 billion of dividends, and repurchased 5.0 million of its outstanding shares, equating to $0.9 billion. The full-year dividend was $3.32, representing a 5% increase over the prior year.
Ferguson is changing its fiscal year-end from July 31 to December 31, with a five-month transition period beginning August 1, 2025, and the company will begin reporting on a calendar year basis effective January 1, 2026. The company has provided guidance for the 2025 calendar year, expecting mid-single-digit revenue growth with an adjusted operating margin range of 9.2% to 9.6% for the full year.
Following these announcements, the company's shares moved 1.38%, and are now trading at a price of $214.53. For more information, read the company's full 8-K submission here.
