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Ferguson Enterprises Tops Quarterly Views, Sees Sales Growth at Top End of Outlook

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Ferguson Enterprises Tops Quarterly Views, Sees Sales Growth at Top End of Outlook

Ferguson Enterprises (FERG) reported higher-than-expected second-quarter results on Monday, while the plumbing supplies distributor forecast full-year sales to grow at the top end of its prior outlook range.

Adjusted earnings rose to $3.39 per share for the quarter ended June 30 from $3.22 the year before, topping the FactSet-polled consensus of $3.30. Sales improved 4.6% to $8.75 billion, ahead of the Street's view for $8.68 billion.

"We delivered another strong quarter of non-residential growth and we returned to growth in residential despite the challenging market backdrop," Chief Executive Kevin Murphy said in a statement. "While the economic environment remains uncertain, our performance year-to-date enables the upward revision of our full year guidance."

Shares of the company, which joined the S&P 500 index last week, gained 3% in Monday trade, taking their year-to-date gains to nearly 19%. In addition to plumbing, Ferguson provides heating, ventilation, air conditioning solutions.

For 2026, Ferguson now anticipates sales to increase by a mid-single-digit. It previously estimated revenue to rise between low- to mid-single-digits. The Street is looking for $32.74 billion, representing annual growth of 6.4%.

The guidance doesn't include the expected impact of the company's proposed acquisition of technical valves and flow control solutions distributor FWI Holdings for about $1.6 billion. That transaction is expected to close in the third quarter of 2026.

Sales in the US moved 5% higher annually to $8.34 billion in the second quarter, driven by non-residential markets. In Canada, sales were down 1.9% to $408 million as markets remained "challenging," especially in residential, Ferguson said.

Ferguson's stock has been range-bound for most of the year, and could see "somewhat of a breakout" once volatility surrounding the Middle East conflict eases, Truist Securities said in an emailed note.

Last month, industrial and construction supplies distributor Fastenal (FAST) reported second-quarter earnings per share in line with market estimates, while revenue surpassed expectations.

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