Ferguson Enterprises Inc. Reports Strong Q4 Performance and Investor‑Friendly Guidance
Ferguson Enterprises Inc. (NYSE: FERG) released its fiscal‑year‑ending 2025 fourth‑quarter results on September 16, 2025. The distributor of plumbing, heating, and HVAC products reported a 6.9 % increase in sales, reaching $8.5 billion, and an earnings‑per‑share (EPS) of $3.55—up 59 % from the prior year. The company’s operating margin expanded, reflecting a combination of higher sales volume and improved pricing power.
Key Financial Highlights
| Metric | Q4 2025 | YoY Change |
|---|---|---|
| Revenue | $8.5 billion | +6.9 % |
| EPS | $3.55 | +59 % |
| Net Income | $1.23 billion | +45 % |
| Operating Margin | 8.8 % | +1.4 pp |
The robust results were driven largely by growth in the non‑residential segment, where demand for infrastructure and fire‑safety solutions accelerated. Ferguson also announced strategic acquisitions that expanded its product portfolio and geographic reach, contributing to the year‑end sales growth.
Shareholder Returns
Following the earnings release, Ferguson announced a 10 % increase in its quarterly dividend, raising the dividend to $0.25 per share. The company also completed a $948 million share‑buyback program during the quarter, signaling strong confidence in its cash‑flow generation and long‑term value creation.
Market Reaction
- Pre‑market Gap Upshot: The stock opened at $235.20 on September 18, up 10.5 % from the prior close of $214.53, reflecting investor enthusiasm for the earnings blowout.
- Day‑time Trading: The shares traded around $230.99 during the day, ending the session near $235.00.
- Analyst Adjustments: RBC Capital, Truist Securities, and Baird all raised their price targets for Ferguson, with a consensus target of $260.00 per share. All firms maintained a “Buy” or “Outperform” rating, citing the company’s strong cash generation and disciplined capital allocation.
Strategic Outlook
Ferguson’s management reaffirmed its guidance for the full year, projecting continued growth in the residential and non‑residential markets. The company highlighted its focus on:
- Expanding digital sales platforms to capture new customer segments.
- Leveraging its supply‑chain network to improve inventory turnover.
- Continuing selective acquisitions to enhance product breadth.
Conclusion
Ferguson Enterprises Inc. has delivered a solid fourth‑quarter performance, surpassing analyst expectations and reinforcing its position as a leading distributor in the industrial and infrastructure sectors. The company’s enhanced dividend, substantial share buybacks, and upward‑revised analyst targets suggest that the market views Ferguson as a strong value‑creation vehicle moving forward.