TLDR
- Ferguson stock rose 13.15% to $204.07 after Q3 earnings beat.
- Sales hit $7.6 billion, up 4.3% despite FX headwinds and fewer sales days.
- Adjusted EPS grew 7.8% to $2.50; dividend increased 5%.
- Three acquisitions completed, including two in the U.S.
- Full-year guidance raised to low- to mid-single digit revenue growth.
Ferguson Enterprises Inc. (NYSE: FERG) traded at $204.07 as of writing, up 13.15% after posting robust third-quarter results on June 3, 2025.
Ferguson Enterprises Inc. (FERG)
The company reported sales of $7.6 billion, representing a 4.3% year-over-year increase, despite facing headwinds from a weaker U.S. dollar and one fewer sales day. Organic growth contributed 5.0%, while acquisitions added 1.0%.
Gross margin improved 50 basis points to 31.0% on better pricing and moderating deflation. Adjusted operating margin rose to 9.4% from last year, helping boost adjusted operating profit to $715 million, up 6.1% from the same quarter in 2024.
EPS Performance and Shareholder Returns
Adjusted diluted EPS climbed 7.8% to $2.50, compared to $2.32 last year. Reported EPS, impacted by $68 million in one-time restructuring charges, came in at $2.07, down 5.0% from Q3 2024. Ferguson also increased its quarterly dividend by 5% to $0.83 and returned $251 million to shareholders through stock repurchases.
Ferguson, $FERG, Q3-25. Results:
🟢 +4% Pre-Market📊 Adj. EPS: $2.50 🟢
💰 Revenue: $7.62B 🟢
📈 Net Income: $410M
🔎 Strong performance driven by volume growth, margin actions, and early benefits from business streamlining efforts. pic.twitter.com/nI8SvSvzGA— EarningsTime (@Earnings_Time) June 3, 2025
CEO Kevin Murphy noted the quarter’s success was driven by margin improvements, early benefits from streamlining efforts, and strong execution amid uncertain market conditions.
Strategic Acquisitions Strengthen U.S. Presence
During the quarter, Ferguson completed three acquisitions, including Independent Pipe & Supply Corp. and Light Innovations Inc. in the U.S. These additions bolster Ferguson’s presence in commercial/mechanical distribution and home remodeling, supporting its Ferguson Home growth strategy.
The U.S. market, which makes up most of Ferguson’s revenue, saw a 4.5% increase in sales. Residential markets remained soft, up just 2%, while non-residential segments grew 7%, driven by capital project demand. Infrastructure revenues grew in the low double digits.
Outlook Raised as Momentum Builds
Given its strong quarterly performance, Ferguson raised its full-year outlook. The company now expects low- to mid-single digit revenue growth and adjusted operating margins between 8.5% and 9.0%.
Ferguson’s balance sheet remains solid, with net debt to adjusted EBITDA at 1.2x, allowing flexibility for further strategic moves. The company’s actions to simplify its operations are expected to yield $100 million in annual savings moving forward.
Dividend and Guidance Details
Ferguson declared its quarterly dividend of $0.83 per share, with an ex-dividend date of June 20, 2025. Its next earnings call is expected in September 2025. The company continues to benefit from secular tailwinds in both residential and non-residential sectors and remains committed to disciplined capital allocation.
Ferguson’s strong performance and expanded U.S. footprint underscore its ability to adapt and grow in a dynamic market environment.
