16th Sep 2025 12:23
(Alliance News) - Ferguson Enterprises Inc shares jumped on Tuesday as it raised its dividend amid continued market share gains despite an "uncertain environment".
In the three months to the end of July, the Newport News, Virginia-based heating and plumbing products distributor posted net income of USD700 million, up 55% from USD451 million a year ago.
Quarterly diluted earnings per share were up 59% at USD3.55 from USD2.23.
The firm declared a quarterly dividend of USD0.83 per share, taking the full-year payout to USD3.32, representing growth of 5.1% from USD3.16 a year prior.
Net sales for the quarter increased 6.9% to USD8.50 billion from USD7.95 billion.
Shares in Ferguson Enterprises were up 9.2% at 17,020.00 pence in London on Tuesday afternoon.
Organic revenue grew 5.8% in the quarter with a further 1.1% from acquisitions. The gross margin was up 70 basis points from a year ago to 31.7%.
"Our associates delivered strong results to finish the year, as they continued to serve our customers and execute our strategy in a challenging market environment. Throughout the year, we invested in key growth areas to drive further organic growth, completed nine acquisitions, grew our dividend and continued to execute our share buyback program, while maintaining a strong balance sheet," said Chief Executive Officer Kevin Murphy.
"While we continue to operate in an uncertain environment, we remain confident in our markets over the medium term, leveraging multiyear tailwinds in both residential and non-residential markets as we invest to support the complex project needs of the water and air specialised professional."
For the full year, net sales rose 3.8% to USD30.76 billion from USD29.64 billion. Net income climbed 7.0% to USD1.86 billion from USD1.74 billion.
Diluted earnings per share for the full year climbed to USD9.32 from USD8.53.
Ferguson said it is changing its financial year end from July 31 to December 31 to allow its associates "to remain focused on our customers during our busiest season".
After a five-month transition period from August 1, 2025 to December 31, 2025, it will begin reporting on a calendar year basis from January 1, 2026.
It will release earnings on December 9 covering the three-month period to the end of October. The firm plans to announce results for the five-month transition period in late February.
Due to this change, the company provided guidance for the 2025 calendar year.
Ferguson forecast mid-single digit growth in net sales during 2025 with an adjusted operating margin between 9.2% and 9.6%, compared to 9.1% in 2024.
It expects capital expenditure between USD300 million and USD350 million for 2025, compared to USD328 million in 2024.
By Michael Hennessey, Alliance News reporter
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