Core Insights - Ferguson Enterprises Inc. filed a Form 10-K with the U.S. Securities and Exchange Commission on September 26, 2025 [1] - Ferguson is identified as the largest value-added distributor serving the water and air sectors [1] Company Overview - Ferguson operates under the ticker symbols NYSE: FERG and LSE: FERG [1] - The company's filings, including the Form 10-K, are accessible on the SEC's website and its own investor relations page [1]

Group 1 - Ferguson Enterprises Inc. (FERG) is a leading distributor of building products, serving both residential and non-residential markets with a wide array of plumbing, HVAC, waterworks, and construction supplies [2] - The company achieved organic growth of 1% in its Residential segment in 2025, outperforming a 3% sector decline, and 6% growth in Non-Residential versus flat sector growth, outperforming peers by approximately 500 basis points [3] - FERG maintains gross margins around 30%, operating margins of 9–10% (adjusted 11.4% in Q4), and an ROIC of 30% in 2023–2024, reflecting efficient operations and strong capital allocation [4] Group 2 - FERG is positioned to benefit from reshoring, data center growth, and ongoing market share gains, with mid-single-digit revenue growth and mid- to high-single-digit free cash flow growth expected over the next five years [5] - Potential upside catalysts include inclusion in the S&P 500, which could re-rate the stock, while the company's scale, expertise, and consistent profitability provide a resilient investment profile [5] - The company’s competitive moat is anchored in distribution volume, broad product offerings, and specialized knowledge in water-related and dual-trade projects, effectively targeting professional customers [4]

Group 1 - Performance Food Group Company announced the appointment of Scott Ferguson to its Board of Directors [1] - Scott Ferguson is the Founder and Managing Partner of Sachem Head Capital Management LP [1] - The appointment is effective immediately and reflects a commitment to enhancing stockholder value [1]

Group 1 - The core investment thesis for Ferguson Enterprises Inc. (NYSE: FERG) is an upgrade to buy, driven by positive expectations on pricing, residential demand, and solid management execution [1] - The investment strategy focuses on long-term investments while also incorporating short-term shorts to identify alpha opportunities [1] - The analysis is based on a bottom-up approach, emphasizing the fundamental strengths and weaknesses of individual companies [1] Group 2 - The investment duration is medium to long-term, aiming to identify companies with strong fundamentals, sustainable competitive advantages, and growth potential [1]

Group 1 - Ferguson Enterprises Inc. filed a Final Prospectus Supplement on September 19, 2025, and a Form 8-K on September 22, 2025, with the U.S. Securities and Exchange Commission [1][5] - The company is the largest value-added distributor in the $340 billion North American construction market, focusing on water and air specialized professionals [2][5] - Ferguson reported sales of $30.8 billion for FY'25 and employs approximately 35,000 associates across over 1,700 locations [2][5] Group 2 - On September 18, 2025, Ferguson priced a public offering of $750 million in aggregate principal amount of 4.350% senior unsecured notes due 2031 [6][7] - The obligations under the notes will be fully and unconditionally guaranteed by Ferguson UK Holdings Limited, an indirect subsidiary of Ferguson [6][7]

Group 1 - Ferguson Enterprises Inc. reported significant earnings growth, beating both top and bottom line expectations, resulting in an almost 8% stock price increase and a year-to-date rally of nearly 30% [1] - The company supplies a wide range of products including plumbing, HVAC, appliances, fire protection, and industrial solutions to various customer segments [2] - Since Jim Cramer's positive remarks about Ferguson, the stock has appreciated by approximately 37.5% [2] Group 2 - The company is part of a broader group of stocks that have been undervalued, particularly after a market shift away from data centers, which is viewed as a mistake [2]

Core Insights - Ferguson Enterprises Inc. (NYSE:FERG) reported a significant increase in net income and sales for the fourth quarter and the full fiscal year, indicating strong financial performance [2][3]. Financial Performance - For the fourth quarter, Ferguson's net income rose by 55% to $700 million from $451 million year-on-year, while net sales increased by 6.9% to $8.5 billion from $7.9 billion [2]. - For the full fiscal year, the company achieved a net profit of $1.856 billion, a 6.9% increase from $1.735 billion the previous year, with net sales growing by 3.8% to $30.76 billion from $29.6 billion [3]. - Ferguson anticipates mid-single digit growth in net sales for the calendar year 2025, building on the $29.8 billion in net sales recorded in 2024 [4]. Corporate Transition - Ferguson Enterprises Inc. will transition to a calendar year reporting system starting January 1, 2026, which will align its fiscal reporting with the calendar year [3]. - The company will continue to report earnings for the period from August 1 to October 31, 2025, on December 9, 2025, before shifting to full-year earnings reports for the calendar year in late February 2026 [4].

Group 1 - Ferguson Enterprises reported fourth-quarter 2024 sales of $8.5 billion, a 6.9% increase from last year, exceeding analyst estimates of $8.41 billion [1] - Adjusted earnings per share were $3.48, surpassing expectations of $2.88 and up 16.8% from the prior year [1] - GAAP diluted EPS was $3.55, reflecting a 59.2% increase from $2.23 [1] Group 2 - For calendar 2025, Ferguson expects mid-single-digit revenue growth and an adjusted operating margin projected between 9.2% and 9.6%, compared to 9.1% in calendar 2024 [2] - Interest expense is forecasted to be between $180 million and $200 million, with capital expenditures planned to range from $300 million to $350 million [2] - The adjusted effective tax rate is expected to be around 26% [2] Group 3 - CEO Kevin Murphy highlighted investments in key growth areas, completion of nine acquisitions, dividend growth, and execution of a share buyback program while maintaining a strong balance sheet [3] - Following the earnings announcement, Ferguson Enterprises shares fell 0.7% to $229.84 [3] Group 4 - Wells Fargo analyst maintained an Overweight rating and raised the price target from $250 to $275 [8] - Baird analyst maintained the stock with an Outperform rating and raised the price target from $260 to $262 [8] - RBC Capital analyst maintained an Outperform rating and raised the price target from $231 to $243 [8]

Core Viewpoint - Ferguson Enterprises' shares increased by as much as 9.8% following the release of mixed Q4 fiscal 2025 results, indicating a recovery from previous negative sentiment related to dividend announcements [1] Earnings, Revenue, and Dividend Support - Q4 revenue rose by 6.9% year over year, reaching $8.5 billion - Adjusted earnings per share increased from $2.98 to $3.48, marking a 17% rise, surpassing analyst expectations of approximately $3.29 per share on sales of around $8.7 billion [2] Management Guidance - Management provided mildly bullish guidance for fiscal year 2026, indicating expectations for widening adjusted operating margins and continued single-digit revenue growth [3] Investor Reassurance - The earnings release and conference call alleviated investor concerns regarding future dividends, despite previous warnings about challenges in cross-border cash movement affecting dividend payouts [4] Business Operations - Ferguson operates primarily in North America, benefiting from stricter air conditioning standards, which offset weaker demand for residential home improvement products in Q4 - Challenges include a slowing new construction market and uncertain long-term macroeconomic trends [6][7] Growth Strategy - The company completed nine acquisitions during the fiscal year and one additional acquisition after the period ended, indicating a commitment to ambitious growth plans [8]

Core Insights - The article discusses the earnings call insights compiled from various transcripts and content available on the Seeking Alpha website, emphasizing the limitations of AI-generated insights [1] Group 1 - The earnings call insights are based on transcripts and other content from Seeking Alpha, highlighting the reliance on AI tools for generating these insights [1] - There is a disclaimer regarding the accuracy, completeness, and timeliness of the earnings call insights, indicating that they have not been curated or reviewed by editors [1] - The insights are intended for informational purposes only and do not account for individual financial situations or objectives [1]