Ferguson Enterprises(FERG) Stock: Surge 5% as Dividend Boost and $948M in Buybacks Fuel Investor Confidence

TLDR

• Ferguson stock jumps on Q4 beat, EPS up 59% as margins expand.
• Q4 sales hit $8.5B with 6.9% growth; Ferguson crushes earnings.
• Ferguson boosts dividend, EPS, and margins amid strong quarter.
• Strategic buys, strong cash flow fuel Ferguson’s growth outlook.
• Ferguson ends fiscal 2025 strong; eyes mid-single-digit growth.

Ferguson Enterprises Inc. stock surged more than 5% to $225.46 after reporting strong fourth-quarter earnings for 2025.

Ferguson Enterprises Inc.

The stock reached an intraday high above $231 before easing slightly into the close. The rally followed robust top-line and bottom-line growth, exceeding market expectations.

Quarterly sales rose 6.9% year-over-year to $8.5 billion, supported by 5.8% organic growth and 1.1% from acquisitions. Price inflation contributed approximately 2% during the quarter, helping improve profitability. Gross margin expanded by 70 basis points to 31.7%, while operating margin improved to 10.9%.

Earnings per share climbed 59% to $3.55 due to higher operating profit and the absence of prior-year tax charges. On an adjusted basis, EPS rose 16.8% to $3.48, aided by ongoing share repurchases. The company declared a quarterly dividend of $0.83 per share, reinforcing its capital return strategy.

Full Year Results Reflect Market Share Gains

For the full fiscal year ending July 31, 2025, Ferguson reported sales of $30.8 billion, up 3.8% from the previous year. Organic growth accounted for 3.2%, with acquisitions contributing 1.0%, though slightly offset by one fewer selling day. Pricing trends were slightly down across the year.

Gross margin rose 20 basis points to 30.7%, while operating margin declined to 8.5% due to increased investment activity. Adjusted operating margin was 9.2%, down slightly from the prior year but remained within guidance.

Earnings per share increased 9.3% to $9.32, while adjusted EPS was $9.94, reflecting a 2.6% rise. Ferguson generated $1.9 billion in operating cash flow, supporting $301 million in acquisition investments and $948 million in share repurchases. The company paid $3.32 in dividends per share, a 5% increase over the previous year.

Strategic Acquisitions and Fiscal Realignment Support Long-Term Growth

Ferguson completed nine acquisitions during the fiscal year, contributing roughly $300 million in annualized revenue. The fourth quarter included four acquisitions focused on HVAC, water treatment, and metering technologies across key regional markets. These deals aligned with its strategy to serve specialized professional customers in complex project environments.

The company also announced a change in its fiscal year-end to December 31, beginning January 2026, after a five-month transition. This adjustment aligns internal operations with peak seasonal demand and simplifies financial reporting. Ferguson will report interim results in December and full transition results in February 2026.

Guidance for calendar 2025 includes mid-single-digit revenue growth and an adjusted operating margin between 9.2% and 9.6%. Management remains confident despite market uncertainty, emphasizing resilience in non-residential sectors and disciplined expense management. The company’s net debt to adjusted EBITDA stood at 1.1x, reflecting a strong balance sheet position.

Ferguson continues to leverage organic growth, strategic acquisitions, and shareholder returns as core components of its long-term strategy.

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