Ferguson Enterprises reiterated its calendar 2026 guidance of low- to mid-single-digit growth and an adjusted operating margin target of 9.4%–9.8% for the year ending December 31.
Ferguson reported net sales of $7.5 billion for the quarter ended March 31, up 3.6% versus the prior year, driven by 2.8% organic growth and 0.8% from acquisitions, with price inflation in the mid-single digits.
"We expect to continue to outperform the market by deploying scale locally while leveraging the long term growth drivers of water infrastructure, large capital projects, climate and comfort and aging and underbuilt housing," CEO Kevin Murphy said.
In the US business net sales rose 3.5% with non-residential revenue up 8% and residential down 1%, and US adjusted operating profit increased $45 million to $656 million.
The group completed two Waterworks acquisitions in Q1, acquired Carrier Great Lakes post-quarter and signed agreements for three further HVAC and industrial deals expected to close in Q2, saying the six transactions collectively add approximately $350 million of annualised revenue.
In Canada net sales increased 5.5% driven by acquisitions while organic revenue declined 0.3% and adjusted operating profit was $5 million, $1 million below last year.
Net debt to adjusted EBITDA was 1.0x at March 31, the company repurchased $236 million of stock in the quarter, authorised up to $2.0 billion of additional buybacks, and declared a quarterly dividend of $0.89 payable July 8.
Ferguson will host an investor call with CEO Kevin Murphy and CFO Bill Brundage at 8:30 a.m. ET today and will report results for the period ending June 30 on August 10.
