Ferguson Enterprises Inc. has recently released its 10-K report, detailing its operations in the United States and Canada. The company, headquartered in Newport News, Virginia, is a distributor of plumbing and heating products, providing a wide range of solutions and products to residential and non-residential customers, including infrastructure, plumbing, appliances, fire, fabrication, heating, ventilation, and air conditioning (HVAC), as well as water and wastewater treatment products.
According to the 10-K report, for the fiscal year 2025, Ferguson reported net sales of $30.8 billion, representing a 3.8% increase from the previous year. Operating profit was $2.6 billion, with net income reaching $1.9 billion. The company's diluted earnings per share stood at $9.32, reflecting a 9.3% increase from the prior year. Net cash provided by operating activities increased by 1.9% to $1.9 billion in fiscal 2025.
The report highlights that the increase in net sales was primarily driven by higher sales volume and incremental sales from acquisitions, partially offset by the impact of one less sales day in fiscal 2025 than in fiscal 2024. Pricing was slightly down year-over-year, primarily due to deflation in certain commodity categories, partially offset by improvements in finished goods pricing.
Ferguson's gross profit for fiscal 2025 was $9.4 billion, representing a 4.2% increase compared to the previous year. Selling, general, and administrative expenses (SG&A) increased by 5.6%, primarily due to higher performance-based incentive compensation and the impact of cost inflation on labor, infrastructure, and fleet.
The company also reported non-GAAP financial measures, including adjusted operating profit, adjusted net income, and adjusted earnings per share (EPS) * diluted. These measures exclude items that may not be indicative of the company's core operating results, providing a better baseline for analyzing trends in its underlying businesses.
In terms of segment results, Ferguson's United States segment saw net sales of $29.3 billion in fiscal 2025, reflecting a 3.8% increase from the prior year. Adjusted operating profit in the United States was $2.8 billion, indicating a 0.7% increase from the previous year. For the Canada segment, net sales were $1.5 billion in fiscal 2025, representing a 3.7% increase from the prior year, with adjusted operating profit also increasing compared to the previous year.
The company believes that its current cash position, coupled with anticipated cash flow from operations and access to capital, should be sufficient to meet its operating cash requirements for the next 12 months and enable it to invest in acquisitions, capital expenditures, dividend payments, share repurchases, required debt payments, and other obligations. As a result of these announcements, the company's shares have moved -0.72% on the market, and are now trading at a price of $223.74. For the full picture, make sure to review Ferguson Enterprises's 10-K report.
