Ferguson plc announced its calendar‑year 2025 results on February 24 2026, reporting net sales of $31.3 billion—an increase of 5.0% from $29.82 billion in 2024. Gross margin expanded to 31.0%, 70 basis points above the prior year, while operating margin rose to 8.9%, up 40 basis points. Diluted earnings per share reached $10.16, a 24.2% increase from $8.18 in 2024, and the adjusted EPS of $10.58 reflected a 13.4% rise.
Operating cash flow for the year was $2.2 billion, and the company declared a dividend of $3.38 per share, up from $3.16 the previous year. Share repurchases totaled $0.9 billion, leaving $0.6 billion under the program. Net debt to adjusted EBITDA remained strong at 1.1×, underscoring a healthy balance sheet.
Ferguson invested $276 million in eight acquisitions during 2025, generating annualized revenue exceeding $300 million. Segment performance highlighted double‑digit growth in non‑residential markets, driven by demand for water and air solutions in commercial and industrial projects, while residential sales slipped 2% in the fourth quarter. The company’s scale‑advantaged model and robust pricing power helped offset the residential downturn.
Management emphasized confidence in the 2026 outlook. “Our associates delivered a strong year, continuing to provide essential water and air solutions for our customers. We are particularly pleased with double‑digit non‑residential growth during the year and our continued performance against a challenging residential market. Our scale‑advantaged business model and strong balance sheet enable us to invest in organic growth, consolidate our markets through acquisitions and return capital to shareholders.” – Kevin Murphy, CEO. CFO Bill Brundage noted that operating‑margin guidance for 2026 reflects, in part, normalization from “outsized” gross‑margin benefits earlier in 2025 tied to supplier price increases. He added that the company expects some year‑over‑year gross‑margin pressure in 2026, with SG&A leverage expected to offset it.
The company transitioned its fiscal year from July 31 to December 31, completing a five‑month transition period from August 1 2025 to December 31 2025. The current fiscal year began on January 1 2026, aligning the reporting period with the calendar year and simplifying year‑over‑year comparisons.
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