Ferguson Reports 4% Sales Growth, Raises Full-Year Outlook

Ferguson Enterprises reported a strong third quarter for fiscal 2025, exceeding expectations with adjusted earnings per share of $2.50 and revenue of $7.62 billion, marking a 4.3% year-over-year increase. The company saw gross margin expansion by 50 basis points to 31%, and adjusted operating margin rose by 20 basis points to 9.4%, driven by strong volume growth, gross margin actions, moderating deflation, and operational streamlining. CEO Kevin Murphy highlighted broad-based improvements across residential and non-residential sectors, with organic growth of 5% and acquisition growth of 1%, despite some foreign exchange and calendar day impacts. Following the robust performance, Ferguson raised its full-year revenue growth outlook to low- to mid-single-digit percentages and adjusted operating margin guidance to 8.5% to 9.0%, while reducing capital expenditure forecasts. The company also repurchased $251 million in shares during the quarter and projects annualized savings of about $100 million from streamlining efforts. Shares surged significantly after the earnings release, reflecting investor confidence in the company's turnaround and growth prospects.