Ferguson Enterprises Inc on Tuesday raised full-year guidance after sales increased during the third-quarter.
The Newport News, US-based distributor of plumbing and heating supplies updated full-year guidance for net sales growth in the low to mid-single digits. The firm had previously targeted low single digit growth.
Ferguson also adjusted its operating margin guidance to between 8.5% and 9%, compared with its initial range of between 8.3% and 8.8%.
This comes as Ferguson posts net sales in the three months to April 30 of $7.62 billion. This is an increase of 4.3% from $7.31 billion on-year.
Net income for the quarter dropped slightly to $410 million from $443 million the year prior, while cost of sales rose to $5.26 billion from $5.08 billion.
Diluted earnings per share were $2.07 compared with $2.18 during the same period in 2024. Adjusted earnings before interest, taxation, depreciation and amortisation were $770 million versus $722 million on-year.
Ferguson said its balance sheet was ‘strong’ with a net debt to adjusted Ebitda ratio of 1.2x. During the third-quarter, the company attempted to streamline, which led to non-recurring charges of $68 million, though Ferguson expects to see annualised savings of $100 million as a result.
The company declared a quarterly dividend of $0.83, up 5% from $0.79 on-year.
‘The combination of strong volume growth, gross margin actions, moderating deflation and the early benefits of streamlining our business drove adjusted operating profit growth and adjusted operating margin expansion,’ commented Chief Executive Kevin Murphy.
‘We remain confident in our markets over the medium term and continue to balance investment in key strategic opportunities, leveraging multiyear tailwinds in both residential and non-residential markets.’
Ferguson shares jumped 13% to 14,850.00 pence each Tuesday afternoon in London.
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