Ferguson Posts Strong 2025 Results Amid Residential Market Weakness…

Event summary

Ferguson reported $31.3B in net sales for calendar 2025, up 5% YoY, driven by organic growth and acquisitions.
Non-residential revenue grew 10% in Q4 despite a 2% decline in residential revenue due to weak housing starts.
Adjusted operating margin expanded to 9.6%, with adjusted EBITDA rising 11.6% to $3.2B.
The company repurchased $0.9B of shares and declared a quarterly dividend of $0.89.
Ferguson issued 2026 guidance projecting low-to-mid single-digit sales growth and an operating margin of 9.4-9.8%.

The big picture

Ferguson's strong 2025 performance highlights its ability to navigate mixed market conditions through scale and operational discipline. The company's focus on non-residential markets and large capital projects positions it favorably amid broader construction industry trends, though residential headwinds remain a strategic challenge.

What we're watching

Market Segmentation: How Ferguson will balance growth in non-residential markets against persistent residential weakness.
Capital Allocation: Whether the company's $0.6B remaining share repurchase authorization will be fully utilized amid guidance expectations.
Operational Execution: The pace at which Ferguson can maintain margin expansion while investing in future growth capabilities.