Ferguson

Ferguson Enterprises Inc. (Ferguson) is the largest value-added distributor of essential water and air solutions in North America. It sells plumbing, HVAC, appliances, lighting, pipe, valves and fittings, and water and wastewater products to specialized professionals in residential and non-residential construction, through about 36,000 associates in over 1,800 locations. Calendar 2025 sales were $31.3 billion.

In the first nine months of 2026, sales were $25,249 million: $24,110 million in the US and $1,139 million in Canada. Ferguson is a Delaware company based in Newport News, Virginia. It files Form 10-K, 10-Q and 8-K reports with the SEC, and its shares trade on the New York Stock Exchange as FERG.

In May 2026, Ferguson said it was reviewing its secondary listing on the London Stock Exchange, and its releases since August 10, 2026 name only the New York Stock Exchange. Ferguson changed its fiscal year end from July 31 to December 31 and filed a Form 10-KT for the five months to December 31, 2025. Kevin Murphy is Chief Executive Officer.

Ferguson trades above its intrinsic value because investors pay for a high-quality distributor, even though it depends on a construction cycle. About half of its sales are residential, where new building and repair work are weak, so earnings can stop growing before housing recovers. Ferguson has grown faster than its markets by winning non-residential work (up 15% in Q3 2026) and by buying other distributors (eleven deals in 2026 with about $1.5 billion of yearly sales).

It paused share buybacks for the $1.6 billion FloWorks purchase, and leverage rose to 1.7 times. For the price to hold, three things must be true. Non-residential growth from large capital projects, water infrastructure and data centers must stay strong while residential sales stop falling.

The adjusted operating margin must hold at 9.6% to 9.8% as supplier price increases fade, because the gross margin fell 40 basis points in Q3 2026. And net debt to adjusted EBITDA must fall toward the lower end of the 1 to 2 times range, so that buybacks restart. The Q4 and calendar 2026 report on February 16, 2027 and the first 2027 quarters are the next tests.

1. Nov 9, 2026Passed

   Q3 2026 results: non-residential growth and marginNon-residential sales growth above 10% with an adjusted operating margin near last year's 10.7% passes; a lower margin fails.Outcome: Non-residential sales rose 15%, and the adjusted operating margin was 10.7%, level with last year.
2. Feb 16, 2027Pending

   Calendar 2026 results and 2027 outlookAn adjusted operating margin of 9.6% or more for 2026 and net debt to adjusted EBITDA of 1.7 times or less pass; a lower margin or higher leverage fails.
3. 2027 · est.Pending

   Leverage and share buybacksNet debt to adjusted EBITDA that falls toward the lower end of 1 to 2 times, with buybacks restarted during 2027, passes; leverage above 1.7 times through 2027 fails.

Every passed and failed checkpoint across all picks

• November 9, 2026Ferguson reported Q3 2026 results. Sales were $9.0 billion, up 9.5% with organic growth of 7.0%. Adjusted operating profit was $962 million, up 8.9%, and adjusted EPS was $3.43, up 7.9%, against reported EPS of $3.08. Non-residential sales rose 15% and residential sales rose 6%. Gross margin was 30.9%, down 40 basis points. Ferguson raised its 2026 guidance to sales growth of about 7% and an adjusted operating margin of 9.6% to 9.8%.
• November 9, 2026Ferguson declared a quarterly dividend of $0.89 per share, payable on January 8, 2027 to holders of record on November 20, 2026. It said it paused share buybacks for the FloWorks purchase and expects to restart them as leverage moves toward the lower end of its 1 to 2 times range. It has completed eleven acquisitions in 2026 with about $1.5 billion of annual sales.
• August 31, 2026Ferguson completed the purchase of FloWorks, a distributor of valves and flow control products with more than 60 locations, for consideration of $1,616 million. In Q3 2026 it priced $1.2 billion of senior unsecured notes and took a $900 million unsecured term loan that matures in 2029 to pay for it.

Last earnings

November 9, 2026 (8-K on sec.gov)

Next earnings

February 16, 2027, as the company confirmed.

• 10-QQuarterly report for the period ended Sep 30, 2026Filed November 9, 2026 · ferg-20260930
• 8-KEarnings releaseFiled November 9, 2026 · Press release and exhibits
• 8-KOther company newsFiled August 14, 2026 · Read it on sec.gov
• 8-KNew material agreement and New debt or financial obligationFiled August 11, 2026 · Read it on sec.gov
• 10-QQuarterly report for the period ended Jun 30, 2026Filed August 10, 2026 · ferg-20260630
• 8-KEarnings releaseFiled August 10, 2026 · Press release and exhibits
• 8-KInvestor disclosureFiled July 13, 2026 · ferg-20260713
• 10-QQuarterly report for the period ended Mar 31, 2026Filed May 5, 2026 · ferg-20260331
• 8-KEarnings releaseFiled May 5, 2026 · Press release and exhibits
• 8-KShareholder vote resultsFiled May 4, 2026 · ferg-20260430

Every filing on SEC EDGAR (CIK 2011641)

• Residential markets are about half of sales and are weak. New construction and repair and remodeling work are soft, and a longer slump would slow sales and margin even though residential sales grew 6% in Q3 2026.
• Gross margin fell 40 basis points in Q3 2026, because the prior year was lifted by the timing of supplier price increases. Product prices depend on commodities, supplier price increases and trade restrictions, so margin can move up and down.
• Ferguson relies on acquisitions for part of its growth. Net debt rose to $5,695 million, or 1.7 times adjusted EBITDA, after FloWorks, and 2026 interest expense guidance rose to about $235 million from about $200 million. A weak result from bought companies would hurt returns.
• Canada sales fell 4.5% in Q3 2026, and Canada made $23 million of adjusted operating profit in the quarter. A weak Canadian market has little effect on Group profit but can lower growth.
• Ferguson is reviewing its secondary London listing. A move to a single listing in New York can change who holds the shares and how they trade.

Ferguson had net debt of $5,695 million at September 30, 2026, or 1.7 times adjusted EBITDA for the last 12 months of $3,419 million, up from 1.0 times a year before. Its range is 1 to 2 times. Read more

Yield at the current rate

1.3% (current annual rate, at today’s price)

Dividend yield

1.3% (last 12 months, at today’s price of $264.50)

Paid per share

$3.56 in the last 12 months (4 payments)

Current annual rate

$3.56 ($0.89 × 4 a year)

Payout ratio

35% of the last fiscal year’s earnings (the year that ended July 31, 2025)

Latest ex-dividend date

August 21, 2026, $0.89 per share

Dividends per share by year

From 2020 to 2025, the dividend grew by about 3.6% a year. From 2015 to 2025, the dividend grew by about 4.4% a year.

Source: company filings and market data, read on November 13, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.