Ferguson closed its fiscal year with a strong fourth quarter, underscoring a shift in focus toward large-scale nonresidential projects, high-end residential work, and deeper specialization across its customer segments. Company leaders said this approach is positioning Ferguson to gain share despite continued weakness in U.S. housing markets.<\/p>\n
Fourth quarter sales climbed 6.9% to $8.50 billion, powered by surging nonresidential activity. Commercial and mechanical revenue jumped 21%, and Waterworks grew 15%, reflecting Ferguson\u2019s growing role on complex capital projects like data centers, manufacturing plants, and health care facilities.<\/p>\n
Chief Executive Kevin Murphy said Ferguson\u2019s strength comes from its ability to marshal multiple business units on a single project. \u201cOur multi-customer group approach uniquely positions us to solve complex project requirements and drive market outperformance,\u201d he told investors.<\/p>\n
To build on that momentum, Ferguson is expanding early-stage collaboration with engineers and contractors and broadening its portfolio to include process equipment solutions. Recent acquisitions of Templeton and Ritchie Environmental bolstered its expertise in water and wastewater treatment systems\u2014part of a strategy to capitalize on U.S. infrastructure upgrades and onshoring-driven manufacturing projects.<\/p>\n
While residential markets remained soft, Ferguson is betting on the higher end of the segment. The launch of Ferguson Home unifies its residential building, remodel, and e-commerce units to target builders, designers, and trade professionals working on premium projects. The brand now represents 19% of U.S. sales and grew 3% in the fourth quarter.<\/p>\n
Murphy said Ferguson Home integrates showrooms, digital tools, and specialized outside sales teams to deliver a more seamless experience. The company sees this as a long-term play to capture share as housing markets recover.<\/p>\n
HVAC sales dipped slightly in the quarter, pressured by slower housing starts and the industry\u2019s transition to new efficiency standards. Still, Ferguson continues to invest heavily in its \u201cHVAC Everywhere\u201d strategy, which links HVAC and plumbing offerings to serve dual-trade contractors.<\/p>\n
Ferguson has completed more than 600 branch conversions to serve both markets and expects to hit 650 by early 2026. The company also acquired Manufactured Duct & Supply Company in Atlanta and, after year-end, More Supply in Chicago to expand its HVAC network.<\/p>\n
For the full fiscal year ending July 31, Ferguson reported sales of $30.76 billion, up 3.8%, with net income up 9.3% to $9.32 per share. The company generated $1.9 billion in operating cash flow and invested $301 million in nine acquisitions to deepen its capabilities and extend its geographic reach.<\/p>\n
Chief financial officer Bill Brundage said Ferguson will shift its fiscal year-end to December 31 starting in 2026 to align financial planning with its selling cycle. The company expects mid-single-digit revenue growth in calendar 2025 while maintaining steady margins.<\/p>\n
Murphy said Ferguson will keep leaning on its scale, specialized expertise, and local service model to win complex projects and capture market share in both water and air systems.<\/p>\n
\u201cWhile we continue to operate in an uncertain environment, we believe our markets remain attractive over the medium term,\u201d Murphy said. \u201cWe will keep investing in our people and our value-added capabilities to drive growth.\u201d<\/p>\n