Ferguson Boosts Guidance on Acquisitions and Non-Residential Growth…

Event summary

Ferguson reported a 4.6% year-over-year increase in net sales for Q2 2026, driven by organic growth and acquisitions.
The company completed five acquisitions in Q2 2026, with an aggregate annualized revenue of approximately $1.4 billion.
Ferguson signed a definitive agreement to acquire FloWorks, expected to close in Q3 2026.
Adjusted operating profit increased by 2.9% year-over-year to $932 million.
Ferguson raised its full-year guidance, expecting mid-single digit net sales growth and adjusted operating margin between 9.5% and 9.8%.

The big picture

Ferguson's strategic focus on acquisitions and non-residential growth positions it to capitalize on long-term trends in water infrastructure, large capital projects, and climate solutions. The company's ability to navigate economic uncertainty while maintaining a strong balance sheet will be critical for sustaining its market outperformance.

What we're watching

Acquisition Integration: How Ferguson will integrate FloWorks and other recent acquisitions into its existing operations.
Market Dynamics: Whether Ferguson can sustain non-residential growth amid broader economic uncertainty.
Residential Market Recovery: The pace at which the residential market recovers and its impact on Ferguson's overall performance.