Plumbing supplies distributor Ferguson beats Q1 sales expectations, forecasts 2025 sales growth

Reuters12-09
Plumbing supplies distributor Ferguson beats Q1 sales expectations, forecasts 2025 sales growth 

Overview

  • Ferguson Q1 sales rise 5.1% to $8.2 bln, beating analyst expectations

  • Adjusted EPS for Q1 beats estimates, rising 15.9%

  • Company repurchased $208 mln in shares during Q1

Outlook

  • Ferguson expects 2025 net sales to grow by ~5%

  • Company projects 2025 adjusted operating margin of 9.4% - 9.6%

  • Interest expense for 2025 expected to be ~$190 mln

Result Drivers

  • NON-RESIDENTIAL GROWTH - Non-residential revenue grew 12% driven by scale, expertise, and large capital projects

  • RESIDENTIAL CHALLENGES - Residential revenue down 1% due to weak housing starts and soft RMI work

  • GROSS MARGIN IMPROVEMENT - Gross margin improved by 60 bps due to disciplined execution and cost management

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Sales

Beat

$8.17 bln

$8.03 bln (14 Analysts)

Q1 Adjusted EPS

Beat

$2.84

$2.57 (13 Analysts)

Q1 EPS

$2.90

Q1 Adjusted EBITDA

Beat

$867 mln

$800.69 mln (13 Analysts)

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

  • Wall Street's median 12-month price target for Ferguson Enterprises Inc is $257.50, about 4.8% above its December 8 closing price of $245.80

  • The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nBw6CPlZMa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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