Ferguson Enterprises Inc. reported first‑quarter 2026 results with net sales of $8.20 billion, up 5.1% year‑over‑year, and a gross margin of 30.7%. Operating profit rose to $808 million, giving an adjusted operating margin of 9.9%, an improvement over the 9.6% margin reported a year earlier, driven by stronger pricing power and disciplined cost management.
The company’s non‑residential segment grew 12% in revenue, led by robust demand in waterworks and commercial mechanical, while residential sales slipped 1% as the housing market cooled. The double‑digit growth in non‑residential business offset the modest residential decline, keeping overall revenue on track with guidance.
Operating profit and margin expansion were supported by a mix shift toward higher‑margin commercial contracts and effective supply‑chain controls that kept cost growth below revenue growth. The company’s net debt‑to‑adjusted EBITDA ratio remained at 1.1x, underscoring a solid balance‑sheet position.
Management reiterated its calendar‑year 2025 guidance, projecting net sales growth of roughly 5% and an adjusted operating margin of 9.4%–9.6%. The guidance reflects confidence in continued demand in the non‑residential space and a stable cost environment, while the unchanged margin range signals a cautious outlook amid potential pricing pressure.
Kevin Murphy, CEO, said, “Our associates again delivered strong results, continuing to execute our growth strategy in a challenging market environment. We are particularly pleased with another quarter of double‑digit non‑residential revenue growth.”
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