Ferguson Enterprises — Income Statement, Cash Flows & Balance Sheet
Is Ferguson profitable?
Ferguson grew revenue meaningfully while keeping profitability steady, though a one-time tax charge in fiscal 2024 made that year look worse than it was.
| Metric | FY2023 | FY2024 | FY2025 | Change (FY24→FY25) |
|---|---|---|---|---|
| Net sales ($M) | $29,734 | $29,635 | $30,762 | +3.8% |
| Gross profit margin | 30.4% | 30.5% | 30.7% | +0.2 pts |
| Operating profit ($M) | $2,659 | $2,652 | $2,606 | -1.7% |
| Net income ($M) | $1,889 | $1,735 | $1,856 | +7.0% |
| Diluted EPS | $9.12 | $8.53 | $9.32 | +9.3% |
Revenue returned to growth after a flat fiscal 2024, and the gross margin held firm — a good sign for a distributor competing on price and service. Operating profit dipped slightly due to higher restructuring charges ($80M vs. $28M in FY2024, primarily severance from a streamlining effort). Net income and earnings per share rebounded strongly, partly because fiscal 2024 included a one-time, non-cash deferred tax charge of ~$137M tied to the corporate redomicile to the US — that distorted the prior year comparison unfavorably.
Where does Ferguson's revenue come from?
The US business drives nearly all of Ferguson's results, and non-residential construction is quietly becoming the bigger growth engine.
| Segment / End Market | FY2024 | FY2025 | Change |
|---|---|---|---|
| US net sales ($M) | $28,195 | $29,269 | +3.8% |
| Canada net sales ($M) | $1,440 | $1,493 | +3.7% |
| US Residential ($M) | $14,464 | $14,598 | +0.9% |
| US Non-Residential ($M) | $13,731 | $14,671 | +6.8% |
| — Commercial ($M) | $9,431 | $10,088 | +7.0% |
| — Civil/Infrastructure ($M) | $2,396 | $2,609 | +8.9% |
The US segment — representing roughly 95% of total sales — saw non-residential categories (commercial, infrastructure, industrial) grow at nearly seven times the pace of residential, reflecting continued strength in commercial construction activity. Residential demand remained relatively subdued, likely reflecting ongoing housing affordability pressures. Canada is a small but steady contributor growing at a similar rate to the US overall.
Does Ferguson generate cash?
Ferguson is a reliable cash generator, and after investing in the business it returned substantial capital to shareholders.
| Metric | FY2023 | FY2024 | FY2025 | Change (FY24→FY25) |
|---|---|---|---|---|
| Operating cash flow ($M) | $2,723 | $1,873 | $1,908 | +1.9% |
| Capital expenditures ($M) | $441 | $372 | $305 | -18.0% |
| Free cash flow (GAAP operating CF minus capex, calculated) | $2,282 | $1,501 | $1,603 | +6.8% |
| Share repurchases ($M) | $908 | $634 | $953 | +50.3% |
| Dividends paid ($M) | $711 | $784 | $489 | -37.6% |
Operating cash flow was consistent year over year while capital spending declined, lifting free cash flow (operating cash flow minus capital expenditures — a measure of cash left after maintaining and growing the business). Ferguson deployed that cash aggressively on share buybacks, which stepped up meaningfully, while the dividend cash outflow fell because the timing of accruals shifted rather than a cut to the per-share dividend.
How strong is Ferguson's balance sheet?
Ferguson carries meaningful debt but manages it comfortably, supported by solid liquidity and a business that consistently converts profit into cash.
| Metric | FY2024 | FY2025 | Change |
|---|---|---|---|
| Cash & equivalents ($M) | $571 | $674 | +$103M |
| Total debt ($M) | $3,950 | $4,175 | +$225M |
| Long-term debt ($M) | $3,774 | $3,752 | -$22M |
| Net debt (total debt minus cash, calculated) | $3,379 | $3,501 | +$122M |
| Revolving credit facility available ($M) | $1,350 | $1,500 | +$150M |
Debt levels ticked up modestly, mostly reflecting the issuance of a new $750M senior note in October 2024, partly offset by repayment of the $500M term loan. The revolver (a backup credit line) is fully undrawn at $1.5B, providing ample flexibility. Debt maturities are spread out — the next significant lump ($450M) isn't due until fiscal 2027 — and the company consistently generates enough operating cash flow to cover its interest expense many times over, so leverage doesn't appear to be a near-term concern.