FERG Filings — Ferguson Enterprises Inc. - FilingSpy
FERG
Ferguson Enterprises Inc.
Ferguson is the largest North American distributor of plumbing, HVAC, and water solutions, stocking over a million products that contractors and builders rely on for repairs, upgrades, and new construction. It was founded in 1953 in Newport News, Virginia, by Charles Ferguson and two partners, and in 1982 became part of the British Wolseley group, which later renamed itself Ferguson and sold off its UK business to focus on North America. A fun quirk: the company wasn't always called Ferguson — it started under names like Crossroads Supply, and was renamed in 1969 to honor co-founder Charles Ferguson.
Ferguson's Q2 operating profit rose 6.1% to $893M as non-residential growth offset a gross margin dip, while the company announced a $1.6B acquisition.
Non-residential sales again carried the quarter, rising roughly 8%, while residential returned to growth. rose 4.6% to $8.75B and held at 10.2%, though contracted 20 on supplier price timing. The company enters the second half with a $1.6B acquisition pending and under pressure from .
Key takeaways
rose 4.6% to $8.75B, driven by low-single-digit price inflation, higher volume, and 1.0% from acquisitions.
contracted 20 to 31.0%, which management attributed to the timing and extent of prior-year supplier price increases.
grew 6.1% to $893M as SG&A improved 10 to 19.6% of sales, reflecting the timing of prior-year incentive accruals.
U.S. non-residential sales grew roughly 8%, led by commercial, mechanical, industrial, and waterworks, while U.S. residential sales rose roughly 2% on HVAC strength.
fell to $716M from $1,123M a year ago, driven by higher investment and the timing of tax and incentive payments tied to the calendar-year transition.
The company announced a $1.6B acquisition of FWI Holdings, expected to close in Q3 FY2026, to be funded with cash and committed financing.
What changed
The of 31.0% held at the Q1 FY2026 level but contracted 20 , as the return of price inflation was offset by supplier cost timing, a shift from the expansion seen in the prior two quarters.
U.S. residential sales returned to growth at roughly 2% after two consecutive quarters of roughly 1% declines, driven by HVAC, while non-residential growth moderated from roughly 12% in Q1 to roughly 8%.
weakened materially, falling to $716M from $1,123M a year ago, as the build flagged in Q1 intensified with the calendar-year tax and incentive payment timing.
What to watch
Whether the 31.0% can be sustained or expands once the prior-year supplier price comparisons lapse and current price inflation flows through.
The closing and integration of the $1.6B FWI Holdings acquisition, and its effect on the balance sheet, , and the pace of share repurchases.
The trajectory of in the second half, and whether the build reverses to bring full-year generation closer to the prior year's $1.9B.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 sales rose 4.6% to $8.8B on price, volume, and acquisitions; operating profit grew 6.1% despite higher variable costs.
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increased 4.6% to $8.8B, driven by low-single-digit price inflation, higher volume, and 1.0% from acquisitions.
Whether the U.S. residential growth of roughly 2% marks a sustained inflection after two quarters of decline, particularly if interest rates shift.
contracted 20 to 31.0% due to the timing and extent of prior-year supplier price increases.
as a percentage of sales improved 10 to 19.6%, reflecting the timing of prior-year incentive accruals.
US sales grew 5.0% with non-residential up ~8% on commercial/mechanical, industrial, and waterworks strength, while residential rose ~2% on HVAC.
fell to $716M from $1,123M, mainly on higher investment and the timing of tax and incentive payments tied to the calendar-year transition.
The company announced a $1.6B acquisition of FWI Holdings, expected to close in Q3 2026, funded by cash and committed financing.
The Company is from time to time a party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. With respect to such lawsuits, claims and proceedings, the Company records reserves when it is probable a liability has been incurred a…
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The Company is from time to time a party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. With respect to such lawsuits, claims and proceedings, the Company records reserves when it is probable a liability has been incurred and the amount of loss can be reasonably estimated. The Company does not expect any of its pending legal proceedings to have a material adverse effect on its results of operations, financial position or cash flows. The Company maintains liability insurance for certain risks that are subject to certain self-insurance limits.
As of the date of this Quarterly Report, there have been no material changes to the risk factors disclosed in our Transition Report. We may disclose changes to such factors or disclose additional factors from time to time in our future filings with the SEC.
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As of the date of this Quarterly Report, there have been no material changes to the risk factors disclosed in our Transition Report. We may disclose changes to such factors or disclose additional factors from time to time in our future filings with the SEC.