What does Ferguson Enterprises do and what are its main business segments?

What is the market's earnings forecast for Ferguson Enterprises next quarter?

What is the revenue and EPS growth rate for Ferguson Enterprises year over year?

What is Ferguson Enterprises's gross profit margin?

What were the key takeaways from Ferguson Enterprises's earnings call?

What were the key takeaways from Ferguson Enterprises’s earnings call?

What is Ferguson Enterprises's latest dividend and current dividend yield?

What guidance did Ferguson Enterprises's management provide for the next earnings period?

- **Revenue Growth**: 5% YoY driven by nonresidential projects, with Commercial/Mechanical up 21%.
- **Margin Expansion**: Operating margin 9.9% (+80 bps), EBITDA +13% to $867M.
- **Cash Flow Strength**: Free cash flow $325M, below 1.1x debt/EBITDA target.
- **Strategic Investments**: 650+ HVAC counter expansions, trainee programs, and digital tools.
- **Challenges**: Residential weakness, 3% inflation, and lumpiness in large projects.


**【CEO Summary Section】**
- Q1 2026 revenue of $8.2 billion, up 5% YoY, driven by 4% organic growth and 1% acquisition growth. Nonresidential end markets outperformed, with Commercial/Mechanical customer group growing 21%.
- Gross margin improved 60 bps to 30.7%, supported by disciplined cost management and operating profit up 14% to $808 million. Dividend increased 7% to $0.89/share.
- Residential markets remain challenging, but nonresidential large capital projects (e.g., data centers) are key growth drivers.

**【CFO Financial Commentary】**
- GAAP net sales $8.2 billion (+5.1% YoY), with 3% price inflation offsetting 0.1% FX headwinds. Operating margin expanded 80 bps to 9.9%, with EBITDA up 13% to $867 million.
- Free cash flow $325 million (+19%), supporting $440 million in working capital and $118 million CapEx. Guidance updated for 5% revenue growth and 9.4-9.6% operating margin.
- Canada sales +2.2% YoY, but residential weakness persists. Net debt/EBITDA at 1.1x, below target range of 1-2x.

**【Q&A Highlights】**
- **Large Capital Projects**: Represent ~5-10% of revenue, with data centers leading. Open orders and bidding activity strong, but lumpiness expected.
- **Pricing Trends**: 3% YoY inflation in Q1, normalizing to 30-31% gross margin. 2026 may see modest price increases post-deflation.
- **Residential Challenges**: New home starts weak, but Ferguson outperforming with 1% decline vs. broader market. HVAC pressured by A2L transition but long-term bullish.
- **Investments**: Trainee programs, HVAC expansion (650+ counters), and digital tools driving future growth. Inventory levels stable.


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