Ferguson Q4 Sales Up 3.6% to $7.5B, EPS Falls Short at $2.10
Ferguson reported Q4 sales up 3.6% to $7.5 billion, missing the $8.4 billion estimate, with adjusted EPS up 11.7% to $2.10 but below the $2.88 forecast. Residential revenue fell 2% while nonresidential demand drove a 10% sales increase and gross margin widened 90 basis points to 30.6%.
1. Q4 Financial Results
Ferguson posted fourth-quarter net sales of $7.5 billion, up 3.6% year over year, reflecting 3.0% organic growth and 0.9% acquisition gains but undershooting the $8.4 billion consensus. Adjusted EPS increased 11.7% to $2.10 yet missed the $2.88 estimate.
2. Segment Performance
Residential end markets, which account for roughly half of revenue, saw a 2% decline due to lower housing starts and subdued RMI demand, while nonresidential markets delivered a 10% revenue increase driven by waterworks, commercial/mechanical projects, share gains and value-added solutions.
3. Margin and Profit Performance
Gross margin expanded by 90 basis points to 30.6%, while adjusted operating profit rose 13.8% to $625 million, lifting the operating margin 70 basis points to 8.3% compared to the prior year.
4. 2026 Outlook
Management expects 2026 net sales growth in the low- to mid-single digits and targets an adjusted operating margin between 9.4% and 9.8%, backed by continued investment and strong operational execution across end markets.