Ferguson Enterprises has recently released its 10-Q report for the three and six months ended June 30, 2026. The company distributes plumbing, HVAC, appliances, lighting, pipe, valves and fittings, and water and wastewater products and services to residential, non-residential, industrial, and infrastructure customers in the United States and Canada. It also provides customized project support such as virtual design, fabrication, pre-assembly, kitting, installation, and project management through distribution centers, branches, showrooms, sales teams, and e-commerce channels.
In Item 2, management said the quarter reflected higher sales, gross profit, and earnings, while operating cash flow declined because of working-capital investment and tax timing tied to the move to a calendar year-end. Net sales in the second quarter rose 4.6% to $8.751 billion from $8.363 billion a year earlier, with low-single-digit price inflation, higher volume, and 1.0% contribution from acquisitions driving the increase. For the first six months, net sales increased 4.2% to $16.223 billion from $15.576 billion.
Operating profit for the quarter increased 6.1% to $893 million from $842 million, while adjusted operating profit rose 2.9% to $932 million from $906 million. Gross profit increased to $2.712 billion from $2.613 billion, but gross margin slipped to 31.0% from 31.2%. SG&A expenses rose 4.1% to $1.718 billion from $1.650 billion, though SG&A as a percentage of sales edged down to 19.6% from 19.7%.
Net income increased 5.0% to $666 million from $634 million, and diluted earnings per share rose to $3.43 from $3.21. Adjusted diluted EPS was $3.39, up from $3.22. For the six-month period, net income climbed 10.3% to $1.080 billion from $979 million, and adjusted diluted EPS increased to $5.67 from $5.30.
Cash from operations fell to $716 million in the first half of 2026 from $1.123 billion a year earlier. Management attributed the decline mainly to higher working-capital investment and the timing of income tax payments, partly offset by higher net income after non-cash items.
In the United States segment, second-quarter net sales increased 5.0% to $8.343 billion from $7.947 billion. Non-residential markets, which represent about half of U.S. revenue, rose approximately 8%, led by commercial/mechanical, industrial, and waterworks activity, including large capital projects. Residential sales increased approximately 2%, supported by HVAC growth. Adjusted operating profit in the U.S. segment rose to $925 million from $899 million.
In Canada, second-quarter net sales declined 1.9% to $408 million from $416 million, as non-core business divestments and lower volume outweighed price increases. Adjusted operating profit fell to $22 million from $23 million. For the first half, Canada sales rose 1.2% to $734 million, while adjusted operating profit slipped to $27 million from $29 million. As a result of these announcements, the company's shares have moved 2.39% on the market, and are now trading at a price of $262.82. For the full picture, make sure to review Ferguson Enterprises's 10-Q report.
