Ferguson Outperforms in Weak Housing Market Amid Strong Non-Residential Growth
On August 10, Ferguson Enterprises Inc. (NYSE:FERG) reported Q2 results showing resilience amid a soft housing market. Sales rose by 4.6% to $8.8 billion, driven primarily by non-residential work where U.S. revenue increased by 8%. Despite this growth, profit gains lagged behind sales due to margin pressures and slower residential performance. Residential markets remain subdued with new construction and repair activity weak; however, Ferguson still managed a modest 2% increase in U.S. residential sales. The company also made strategic capital moves, including five acquisitions during the quarter and an announced deal for FloWorks expected to close by Q3. These deals are projected to add $1.4 billion annually. Ferguson raised its full-year sales outlook but left out potential contributions from new acquisitions in guidance. Gross margin declined slightly due to lower supplier price increases compared to last year, while net debt remains at 1.3 times adjusted EBITDA. The company also returned value through a $202 million stock buyback and an upcoming dividend.
Tickers: $FERG
Topics: acquisitions housing market profitability sales growth stock buybacks