Ferguson Enterprises Reports 4.6% Revenue Growth in Q2 2026

Ferguson Enterprises Inc. reported a solid financial performance for the second quarter of 2026, with net sales reaching $8.75 billion, a 4.6% increase from $8.36 billion in the same period last year. For the first half of 2026, the company generated $16.22 billion in net sales, up from $15.58 billion in the prior year, reflecting a 4.2% year-over-year growth. The increase in revenue was attributed to price inflation, higher sales volume, and contributions from recent acquisitions. The company's gross profit for the quarter was $2.71 billion, compared to $2.61 billion in the previous year, while net income rose to $666 million from $634 million, resulting in diluted earnings per share of $3.43, up from $3.21.

In terms of operational metrics, Ferguson's adjusted operating profit for the second quarter was $932 million, a 2.9% increase from $906 million in the same quarter of 2025. The company experienced a rise in selling, general, and administrative expenses, which totaled $1.72 billion, reflecting a 4.1% increase compared to the previous year. The increase in expenses was primarily due to higher variable operating costs. The effective tax rate for the quarter was 21.3%, up from 19.7% in the prior year, driven by adjustments related to prior year tax positions.

Ferguson has also been active in strategic developments, acquiring seven businesses during the first half of 2026, which are expected to enhance its distribution capabilities in plumbing, HVAC, and wastewater solutions. The total consideration for these acquisitions was approximately $638 million, contributing $58 million to net sales but resulting in a $15 million loss in income before income tax due to transaction and integration costs. The company anticipates that these acquisitions will provide access to new markets and improve operational efficiencies.

Geographically, the United States segment accounted for the majority of sales, with net sales of $8.34 billion in the second quarter, a 5.0% increase from the previous year. The Canadian segment, however, saw a slight decline in sales, reporting $408 million, down 1.9% year-over-year. The company continues to focus on expanding its market share, particularly in non-residential markets, which have shown strong growth. As of June 30, 2026, Ferguson's total assets stood at $19.30 billion, up from $17.15 billion at the end of 2025, with a total debt of $4.90 billion.

Looking ahead, Ferguson Enterprises has announced plans to acquire FWI Holdings, Inc. for approximately $1.6 billion, with the transaction expected to close in the third quarter of 2026. The company is confident in its ability to manage its financial obligations and anticipates that its current cash position, along with cash flow from operations, will be sufficient to meet its operational needs and support future growth initiatives.