Ferguson Enterprises Inc. has reported its fourth-quarter and year-end financial results, showing a strong finish to the year. In the fourth quarter, the company achieved sales of $8.5 billion, marking a 6.9% increase from the previous year. The gross margin also saw a notable improvement, reaching 31.7%, up 70 basis points from the prior year. Operating margin stood at 10.9%, up 70 basis points from the previous year, or 11.4% on an adjusted basis.
Diluted earnings per share for the fourth quarter were reported at $3.55, reflecting a significant increase of 59% from the same period last year. The company also declared a quarterly dividend of $0.83 per share and completed four acquisitions during the quarter, alongside share repurchases totaling $189 million.
For the full year, Ferguson reported sales of $30.8 billion, indicating a 3.8% increase from the previous year. The gross margin for the full year stood at 30.7%, up 20 basis points from the prior year. However, the operating margin slightly decreased to 8.5%, down 40 basis points from the previous year, or 9.2% on an adjusted basis. Diluted earnings per share for the full year were reported at $9.32, reflecting a 9.3% increase from the previous year.
The company also highlighted its strong cash generation, with $1.9 billion in operating cash flow for the full year. Additionally, Ferguson invested $301 million in nine acquisitions, generating annualized revenue of approximately $300 million. Share repurchases for the year amounted to $948 million, with an outstanding balance of approximately $1.0 billion remaining under the current share repurchase program at July 31, 2025.
In terms of the company's financial position, its net debt to adjusted EBITDA ratio stood at 1.1x as of July 31, 2025.
Ferguson CEO, Kevin Murphy, expressed confidence in the company's performance, citing strong results driven by associates and continued market share gains. He also emphasized the company's investments in key growth areas, completion of acquisitions, dividend growth, and share buyback program execution while maintaining a strong balance sheet.
Looking ahead, Ferguson announced a change in its fiscal year-end from July 31 to December 31, with a transition period from August 1, 2025, to December 31, 2025. The company plans to begin reporting on a calendar year basis effective January 1, 2026.
As a result of this change, Ferguson 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%. The company is set to release earnings on December 9, 2025, covering the three-month period of August 1, 2025, through October 31, 2025, and plans to announce its five-month transition period results in late February 2026.
Following these announcements, the company's shares moved 6.13%, and are now trading at a price of $227.68. If you want to know more, read the company's complete 8-K report here.
