Ferguson Reports Strong 2025 Results Amid Mixed Market Conditions…

Event summary

Ferguson reported $31.3 billion in net sales for calendar 2025, up 5% year-over-year.
Non-residential revenue grew 10% in Q4 2025, while residential revenue declined 2%.
Adjusted operating profit increased by 11.3% to $3.0 billion.
The company issued guidance for calendar 2026, expecting low-to-mid single-digit sales growth and an adjusted operating margin of 9.4%-9.8%.
Ferguson completed eight acquisitions in 2025 with annualized revenue exceeding $300 million.

The big picture

Ferguson's strong 2025 performance highlights its ability to navigate a challenging residential market through non-residential growth and strategic acquisitions. The company's scale-advantaged business model and robust balance sheet position it well to capitalize on long-term growth drivers in water infrastructure, climate solutions, and aging housing markets.

What we're watching

Market Segmentation: How Ferguson will balance growth in non-residential markets against continued weakness in residential sectors.
Execution Risk: Whether the company can sustain operational efficiency and margin expansion amid mixed market conditions.
Strategic Investments: The pace at which Ferguson's investments in organic growth and acquisitions will drive long-term value.