FMP

FMP

Ferguson plc (NYSE:FERG) Surpasses Earnings and Revenue Estimates

  • Earnings Per Share (EPS) of $2.90, beating the estimated $2.77 and reflecting a 13.1% increase from the previous year.
  • Revenue reached approximately $8.17 billion, surpassing the estimated $7.36 billion and marking a 5.3% year-over-year growth.
  • Strong market valuation indicated by a price-to-earnings (P/E) ratio of approximately 22.8 and a price-to-sales ratio of about 1.43.

Ferguson plc, listed on the NYSE under the symbol FERG, is a leading distributor of plumbing and heating products. The company operates primarily in North America, serving a wide range of customers in the construction and infrastructure sectors. Ferguson competes with other major players in the industry, such as Home Depot and Lowe's, by leveraging its extensive distribution network and customer service.

On December 9, 2025, Ferguson reported earnings per share (EPS) of $2.90, surpassing the estimated $2.77. This performance reflects a 13.1% increase from the previous year, showcasing the company's ability to deliver strong financial results. Ferguson's revenue also exceeded expectations, reaching approximately $8.17 billion compared to the estimated $7.36 billion, marking a 5.3% year-over-year growth.

Ferguson's success is driven by strong non-residential demand and strategic acquisitions, particularly in the U.S. waterworks and infrastructure sectors, as well as in Canada. Despite challenges such as rising operating costs and currency headwinds, the company continues to demonstrate resilience. CEO Kevin Murphy expressed satisfaction with the company's performance, highlighting its ability to achieve double-digit growth in non-residential revenue.

The company's financial health is further supported by its stable earnings estimates over the past 60 days, indicating investor confidence. Ferguson's price-to-earnings (P/E) ratio of approximately 22.8 suggests that investors are willing to pay a premium for its earnings. Additionally, the company's price-to-sales ratio of about 1.43 and enterprise value to sales ratio of around 1.59 reflect its strong market valuation.

Ferguson's financial metrics, such as an enterprise value to operating cash flow ratio of approximately 25.79 and an earnings yield of about 4.39%, provide insight into its cash flow generation and return on investment. The company's debt-to-equity ratio of approximately 0.92 indicates a balanced leverage level, while a current ratio of about 1.88 suggests a solid ability to cover short-term liabilities with short-term assets.