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Ferguson Enterprises Inc on Tuesday reported steady sales growth in 2025 and confidence in the year ahead, despite softer demand from residential markets. The Newport News, Virginia-based heating and plumbing products distributor posted annual net sales of $31.32 billion, up from $29.82 billion in 2024. Net income increased to $2.01 billion from $1.65 billion, while operating profit rose 10% to $2.79 billion from $2.53 billion on-year. Diluted earnings per share climbed to $10.16 from $8.18, with the total dividend coming to $3.38 per share, versus $3.16 the year prior. Ferguson repurchased $900 million in shares over the course of 2025, with $600 million still to be completed as of December 31 under its current buyback scheme. The company was confident in ‘continued market share gains’ as it outlined plans for the year ahead. In 2026, Ferguson is targeting net sales growth in the low to mid-single digits and an adjusted operating margin from 9.4% to 9,8%, against 9.6% in 2025. It sees interest expenses slightly higher at $200 million, up from $190 million. Chief Executive Kevin Murphy commented: ‘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.’ According to Ferguson, US residential end-markets, which comprise half its revenue, have ‘remained weak’, with residential sales down roughly 2% in the fourth quarter. However, non-residential business has ‘performed better’, the firm said, rising 10% in the last quarter. ‘While our markets remain mixed as we enter 2026, we expect another year of outperformance,’ Murphy added. Ferguson shares traded 0.7% higher at 18,700.00 pence on Tuesday afternoon in London. The stock was up 0.5% to $252.47 pre-market in New York. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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