Ferguson Enterprises Reports 4.3% Sales Increase and Decline in Net Income for Q3 Fiscal 2025

Ferguson Enterprises Inc. reported a net sales increase of 4.3% for the third quarter of fiscal 2025, reaching $7.621 billion compared to $7.308 billion in the same period last year. The company's gross profit also rose to $2.359 billion, up from $2.232 billion, reflecting a gross profit margin of 31.0%, an improvement from 30.5% in the prior year. However, net income for the quarter decreased to $410 million, down from $443 million, resulting in diluted earnings per share of $2.07, a decline from $2.18 in the previous year.

In the nine-month period ending April 30, 2025, Ferguson's net sales totaled $22.265 billion, a 2.7% increase from $21.689 billion in the same period of fiscal 2024. The company attributed this growth to higher sales volume and contributions from acquisitions, although it faced challenges from one less sales day and price deflation of approximately 1%. Operating profit for the nine months was $1.681 billion, down from $1.841 billion, primarily due to $73 million in restructuring expenses, which included costs associated with streamlining operations.

Ferguson has made strategic moves to enhance its market position, including the acquisition of five businesses during the nine months, which contributed $41 million to net sales. The company has also implemented a supplier financing program to optimize cash flow and improve supplier relationships. As of April 30, 2025, Ferguson's total assets stood at $17.265 billion, with total liabilities of $11.734 billion, resulting in stockholders' equity of $5.531 billion.

Operationally, Ferguson's U.S. segment saw net sales of $7.288 billion, a 4.5% increase year-over-year, driven by growth in both residential and non-residential markets. The Canada segment reported net sales of $333 million, a slight decrease attributed to foreign currency exchange impacts. The company’s employee headcount remained stable, with no significant changes reported in workforce size.

Looking ahead, Ferguson anticipates continued growth driven by strategic acquisitions and operational efficiencies. However, the company remains cautious about potential market fluctuations and economic conditions that could impact demand. The management emphasized the importance of maintaining a strong balance sheet and cash flow to support future investments and shareholder returns.