3rd Jun 2025 13:11
(Alliance News) - Ferguson Enterprises Inc on Tuesday raised full-year guidance after sales increased during the third-quarter.
The Newport News, US-based distributor of plumbing and heating supplies updated full-year guidance for net sales growth in the low to mid-single digits. The firm had previously targeted low single digit growth.
Ferguson also adjusted its operating margin guidance to between 8.5% and 9%, compared with its initial range of between 8.3% and 8.8%.
This comes as Ferguson posts net sales in the three months to April 30 of USD7.62 billion. This is an increase of 4.3% from USD7.31 billion on-year.
Net income for the quarter dropped slightly to USD410 million from USD443 million the year prior, while cost of sales rose to USD5.26 billion from USD5.08 billion.
Diluted earnings per share were USD2.07 compared with USD2.18 during the same period in 2024. Adjusted earnings before interest, taxation, depreciation and amortisation were USD770 million versus USD722 million on-year.
Ferguson said its balance sheet was "strong" with a net debt to adjusted Ebitda ratio of 1.2x. During the third-quarter, the company attempted to streamline, which led to non-recurring charges of USD68 million, though Ferguson expects to see annualised savings of USD100 million as a result.
The company declared a quarterly dividend of USD0.83, up 5% from USD0.79 on-year.
"The combination of strong volume growth, gross margin actions, moderating deflation and the early benefits of streamlining our business drove adjusted operating profit growth and adjusted operating margin expansion," commented Chief Executive Kevin Murphy.
"We remain confident in our markets over the medium term and continue to balance investment in key strategic opportunities, leveraging multiyear tailwinds in both residential and non-residential markets."
Ferguson shares jumped 13% to 14,850.00 pence each Tuesday afternoon in London.
By Holly Munks, Alliance News reporter
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