Ferguson Enterprises Inc. has reported strong fourth-quarter and year-end results, with net sales of $8.5 billion in the fourth quarter, showing a 6.9% increase over the prior year. The company's gross margin improved to 31.7%, up 70 basis points from the prior year. Operating margin also showed improvement, standing at 10.9%, up 70 basis points from the prior year.
Diluted earnings per share for the fourth quarter were reported at $3.55, marking a substantial 59.2% increase over the prior year. In terms of annual performance, Ferguson's sales for the full year were $30.8 billion, representing a 3.8% increase. Gross margin for the full year was 30.7%, up 20 basis points from the previous year.
Adjusted operating profit for the U.S. segment in the fourth quarter stood at $962 million, showing a significant increase of 14.0% over the prior year. The company also completed four acquisitions during the quarter and invested $189 million in share repurchases.
Ferguson's net debt to adjusted EBITDA at the end of July 2025 was 1.1x, and the company invested $301 million in capital expenditures throughout the year. Additionally, Ferguson declared a quarterly dividend of $0.83 per share, bringing the full-year dividend to $3.32, representing a 5% increase over the prior year.
The company announced its decision to change its fiscal year-end from July 31 to December 31, with a transition period from August 1, 2025, to December 31, 2025. Ferguson also 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%.
Today the company's shares have moved 6.13% to a price of $227.68. For the full picture, make sure to review Ferguson Enterprises's 8-K report.
