Ferguson Enterprises 2025 Q4 Earnings Surpasses Expectations, Net Income Surges 55%

Ferguson Enterprises reported its fiscal 2025 Q4 earnings on September 16, 2025. The results marked a significant improvement in both revenue and profitability, with the company exceeding expectations and delivering robust performance across key financial metrics. Management provided optimistic guidance for the upcoming year, reflecting confidence in the company’s strategic direction despite ongoing market challenges.

Revenue for the quarter increased by 6.9% to $8.50 billion, compared to $7.95 billion in the same period of 2024. This growth was driven by both organic expansion and strategic acquisitions, indicating a resilient business model in a mixed market environment.

Earnings per share (EPS) rose sharply by 58.5% to $3.55 in 2025 Q4 from $2.24 in the prior year. Net income also surged, reaching $700 million, a 55.2% increase from $451 million in 2024 Q4. These results underscore the company's continued profitability and operational efficiency, with consistent performance over the past five years.

The stock price of Ferguson Enterprises has shown mixed short-term performance, edging down 1.56% during the latest trading day but posting gains of 1.45% for the week and 1.54% month-to-date. The market appears cautiously optimistic about the company’s long-term trajectory.

Post-earnings, CEO Kevin Murphy highlighted a strong Q4 performance with total sales of $8.5 billion, driven by 5.8% organic growth and 1.1% from acquisitions. Gross margin expanded to 31.7%, and operating profit rose 13.4% to $972 million. Murphy emphasized growth in nonresidential markets, particularly in large capital projects, with commercial mechanical and Waterworks revenue increasing by 21% and 15%, respectively. He acknowledged continued challenges in the residential sector, including weak construction and RMI demand, but expressed confidence in long-term market tailwinds. Strategic priorities include expanding HVAC capabilities, diversifying Waterworks, and launching Ferguson Home, which contributed to 3% growth. Murphy maintained a cautiously optimistic tone, emphasizing the company’s balanced market exposure and ability to outperform despite uncertainties.

CFO Bill Brundage outlined financial guidance for 2025, forecasting mid-single-digit revenue growth, an operating margin range of 9.2% to 9.6%, and EPS of approximately $3.48 to $3.75. Interest expense is expected to range between $180 million and $200 million, with capital expenditures estimated at $300 million to $350 million. The effective tax rate is projected at around 26%. Brundage noted expectations for a softening in residential markets and a slightly more modest growth rate in the second half of the year compared to the first half.

Additional News
Within the three weeks leading up to September 16, 2025, Nigeria’s economic and political landscape saw notable developments. The Nigerian Airline Operators Association welcomed the suspension of a 4% import levy, which had previously raised concerns in the sector. In Lagos, heavy flooding once again submerged major roads, drawing public complaints over infrastructure and drainage challenges. The Federal Government announced plans for agricultural reforms aimed at creating 21 million jobs, signaling a renewed focus on economic diversification. These developments reflect broader economic and infrastructure-related challenges facing the country.