Core Insights - The company is focused on the development of transcript-related projects, indicating a commitment to enhancing their offerings in this area [1] Group 1 - The company publishes thousands of quarterly earnings calls each quarter, showcasing significant growth and expansion in their coverage [1]

Core Insights - Ferguson Enterprises Inc. reported strong fourth-quarter 2024 results with sales of $8.5 billion, a 6.9% increase year-over-year, surpassing analyst expectations of $8.41 billion [1] - Adjusted earnings per share (EPS) were $3.48, exceeding expectations of $2.88 and reflecting a 16.8% increase from the previous year [1] - GAAP diluted EPS rose 59.2% to $3.55 from $2.23 [1] Financial Performance - Gross margin expanded by 70 basis points to 31.7% [2] - Reported operating profit increased by 14.1% to $925 million, while adjusted operating profit rose 13.4% to $972 million [2] - Adjusted EBITDA reached $1.03 billion [2] Segment Performance - U.S. sales grew 7.1% to $8.1 billion, with non-residential revenue up approximately 15% and residential revenue remaining flat [3] - Adjusted operating profit in the U.S. increased by 14% to $962 million [3] - Canada experienced a 4.8% sales growth to $438 million, with adjusted operating profit rising to $24 million from $22 million [3] Annual Overview - For the full fiscal year ended July 31, sales rose 3.8% to $30.8 billion, with 3.2% organic growth and a 1% contribution from acquisitions [4] - Reported operating profit fell 1.7% to $2.6 billion, while adjusted operating profit increased by 0.6% to $2.84 billion [4] - Reported EPS was $9.32, a 9.3% increase, while adjusted EPS rose 2.6% to $9.94 [4] - Adjusted EBITDA for the year was $3.06 billion [4] Cash Flow and Investments - The company generated $1.9 billion in operating cash flow for the year [5] - Ferguson invested $301 million in nine acquisitions, generating approximately $300 million in annualized revenue [5] - The company repurchased $948 million of stock and declared total dividends of $3.32 per share, a 5% increase from the previous year [5] - Net debt stood at $3.49 billion, with a net debt to adjusted EBITDA ratio of 1.1x [5] Strategic Changes - Ferguson will change its fiscal year-end from July 31 to December 31, with a five-month transition period ending December 31, 2025 [6] - This change aims to align reporting with the calendar year and focus on peak customer demand during the traditional fiscal fourth quarter [6] Future Outlook - The company expects mid-single-digit revenue growth for calendar 2025 [7] - Adjusted operating margin is projected to be between 9.2% and 9.6%, compared to 9.1% in calendar 2024 [7] - Interest expense is forecasted to be between $180 million and $200 million [7] - Planned capital expenditures range from $300 million to $350 million, slightly lower than the previous year [7] - The adjusted effective tax rate is expected to be around 26% [7]

Core Insights - Ferguson Enterprises (NYSE:FERG) shares increased by 9.1% following the release of better-than-expected fiscal fourth-quarter results [2] - The company reported quarterly sales of $8.5 billion, representing a 6.9% increase compared to the same period last year, surpassing Wall Street's consensus forecast of $8.39 billion [2]

Financial Data and Key Metrics Changes - Sales for the fourth quarter reached $8.5 billion, a 6.9% increase year-over-year, driven by organic growth of 5.8% and acquisition growth of 1.1% [3][4][15] - Gross margin improved to 31.7%, up 70 basis points from the previous year [4][15] - Operating profit for the quarter was $972 million, reflecting a 13.4% increase year-over-year, with an operating margin of 11.4% [4][16] - Diluted EPS rose 16.8% to $3.48 compared to the prior year [4][16] - For the full year, revenue was $30.8 billion, a 3.8% increase, with operating profit of $2.84 billion, up 0.6% [8][9] Performance by Business Lines - HVAC revenue decreased slightly due to market conditions, but the overall HVAC segment grew 8% for the year [10][11] - Waterworks revenue increased by 10% for the fiscal year, driven by diversification efforts [12] - Commercial mechanical revenue grew 21%, while waterworks revenues increased 15% [8][12] - Residential trade plumbing revenues decreased by 2% due to headwinds in new construction and ongoing PVC price deflation [7][10] Market Performance Data - In the U.S. market, net sales increased by 7.1%, with non-residential revenue growth of approximately 15% [6][16] - The residential end market remained subdued, with flat revenue due to weakened new construction starts and soft demand in repair, maintenance, and improvement [6][10] - Non-residential markets showed resilience, particularly in large capital projects, contributing to overall growth [6][12] Company Strategy and Industry Competition - The company is focused on HVAC expansion, waterworks diversification, and large capital projects as key growth areas [11][23] - A multi-customer group approach is emphasized to enhance service delivery and project execution [34][35] - The company continues to consolidate fragmented markets through acquisitions, completing nine acquisitions in the fiscal year [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in medium-term market conditions despite current uncertainties, leveraging multi-year tailwinds in both residential and non-residential markets [5][23] - The outlook for the second half of calendar year 2025 anticipates softer growth due to ongoing challenges in new residential construction [28][81] - Management highlighted the importance of operational agility and strong contractor relationships in navigating complex project requirements [13][35] Other Important Information - The company announced a change in fiscal year-end from July 31 to December 31, allowing for better focus during peak seasons [20][21] - A quarterly dividend of $0.83 per share was declared, representing a 5% increase over the prior year [18] Q&A Session Summary Question: Growth and end market outlook - Management noted that while residential markets are expected to be down low to mid-single digits, non-residential markets showed strong growth, particularly in large capital projects [27][28] Question: Non-residential bidding activity - Management confirmed healthy backlogs across various segments, including commercial mechanical and waterworks, with strong bidding activity continuing [42][43] Question: Pricing and margin expectations - Management indicated that pricing has inflected positively, with expectations of modest inflation moving forward, while gross margins are expected to normalize around 30%-31% [46][49] Question: Residential remodel demand - Management acknowledged continued pressure in the remodel market but noted that the higher-end segment remains resilient, with Ferguson Home showing a 3% growth rate [72] Question: New residential construction trends - Management expects new residential construction to weaken slightly in the second half of the year, but does not foresee a dramatic decline [80][81]

Financial Data and Key Metrics Changes - In Q4, net sales reached $8.5 billion, a 6.9% increase year-over-year, driven by organic growth of 5.8% and acquisition growth of 1.1% [4][16] - Gross margin improved to 31.7%, up 70 basis points from the previous year [4][16] - Operating profit was $972 million, reflecting a 13.4% increase over the prior year, with a resulting operating margin of 11.4% [5][17] - Diluted EPS increased by 16.8% to $3.48 [5][17] - For the full year, revenue was $30.8 billion, a 3.8% increase, with operating profit of $2.84 billion, up 0.6% [10][11] Performance by Business Lines - HVAC revenue was slightly down due to market conditions, while residential trade plumbing revenues decreased by 2% [8][9] - Ferguson Home, a unified brand for residential building and remodel, saw a revenue growth of 3% [9] - Waterworks revenue grew by 10%, driven by diversification efforts [13] - Commercial mechanical revenue increased by 21%, and industrial grew by 5% [9][13] Performance by Markets - U.S. net sales increased by 7.1%, with non-residential revenue growth of approximately 15% [7][17] - Residential end markets remained subdued, with flat revenue due to weakened new construction starts [7][11] - Canada saw net sales increase by 4.8%, with a 4.9% contribution from acquisitions [17] Company Strategy and Industry Competition - The company is focused on HVAC expansion, waterworks diversification, and large capital projects [24] - A multi-customer group approach is emphasized to enhance project execution and customer service [35][36] - The company continues to consolidate fragmented markets through acquisitions, completing nine acquisitions in the fiscal year [20] Management's Comments on Operating Environment and Future Outlook - Management remains confident in medium-term market conditions despite current uncertainties [6][24] - The outlook for the second half of calendar year 2025 anticipates softer growth due to ongoing challenges in residential construction [29][82] - The company expects mid-single-digit revenue growth for calendar year 2025, with operating margins projected between 9.2% and 9.6% [23] Other Important Information - The company announced a change in fiscal year-end from July 31 to December 31, allowing for better focus during peak seasons [21][22] - A quarterly dividend of $0.83 per share was declared, reflecting a 5% increase over the prior year [19] Q&A Session Summary Question: Outlook on growth and end market trends - Management noted that while non-residential markets are strong, residential markets are expected to remain weak, particularly in new construction [28][29] Question: Details on bidding activity and project backlogs - Backlogs are healthy across various segments, with strong bidding activity in non-residential projects, including data centers and biotechnology [44][45] Question: Pricing and margin expectations - Management expects some modest inflation moving forward, with gross margins normalizing to the 30-31% range [49][50] Question: Insights on residential remodel demand - The remodel market is under pressure, but the higher-end segment remains resilient, with Ferguson Home performing well [72][73] Question: Trends in new residential construction - Management anticipates continued weakness in new residential construction, particularly in the Sunbelt region [81][82]

Financial Data and Key Metrics Changes - Sales for the fourth quarter reached $8.5 billion, a 6.9% increase year-over-year, driven by organic growth of 5.8% and acquisition growth of 1.1% [3][4][15] - Gross margin improved to 31.7%, up 70 basis points from the previous year [4][15] - Operating profit for the quarter was $972 million, reflecting a 13.4% increase year-over-year, with an operating margin of 11.4% [4][16] - Diluted EPS increased by 16.8% to $3.48 [4][16] - Full-year revenue was $30.8 billion, a 3.8% increase from the previous year, with operating profit of $2.84 billion, up 0.6% [8][9] Performance by Business Lines - HVAC revenue decreased slightly due to market conditions, but overall HVAC revenue for the year increased by 8% [10][11] - Waterworks revenue grew by 10% for the fiscal year, driven by diversification efforts [12] - Commercial mechanical revenue increased by 21%, while waterworks revenues rose by 15% [8][12] - Residential trade plumbing revenues decreased by 2% due to headwinds in new construction and ongoing PVC price deflation [7][10] Performance by Markets - In the U.S. market, net sales increased by 7.1%, with non-residential revenue growth of approximately 15% [6][16] - Residential end markets remained subdued, with flat revenue due to weakened new construction starts and soft demand in repair, maintenance, and improvement [6][10] - Canada saw net sales increase by 4.8%, with a 4.9% contribution from acquisitions [16] Company Strategy and Industry Competition - The company is focused on HVAC expansion, waterworks diversification, and large capital projects as key growth areas [11][23] - The merger of residential building and remodel with residential digital commerce into Ferguson Home aims to enhance customer experience and drive growth [8][14] - The company continues to consolidate fragmented markets through acquisitions, completing nine acquisitions in the fiscal year [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in medium-term market conditions despite current uncertainties, leveraging multi-year tailwinds in both residential and non-residential markets [5][23] - The company anticipates mid-single-digit revenue growth for calendar year 2025, with an operating margin range of 9.2% to 9.6% [22] - Management acknowledged challenges in the residential market, particularly in new construction and repair, maintenance, and improvement [28][81] Other Important Information - The company plans to change its fiscal year-end from July 31 to December 31, allowing for better focus during peak seasons [20][21] - The board declared a quarterly dividend of $0.83 per share, reflecting a 5% increase over the prior year [18] Q&A Session Summary Question: Growth and end market outlook - Analyst inquired about growth assumptions and market trends, particularly regarding residential and non-residential sectors [26] - Management noted that while residential markets are expected to remain weak, non-residential markets are showing resilience, particularly in large capital projects [27][28] Question: Non-residential bidding activity - Analyst asked for details on bidding activity and momentum in non-residential markets [41] - Management confirmed healthy backlogs across various segments, including commercial mechanical and waterworks, with strong bidding activity [42][44] Question: Pricing and margin expectations - Analyst sought clarification on pricing trends and gross margin expectations [45] - Management indicated that while pricing has improved, commodity prices remain volatile, and gross margins are expected to normalize [46][49] Question: Residential remodel demand - Analyst questioned the demand trends in the residential remodel market [71] - Management acknowledged continued pressure in the remodel market but noted positive growth in the higher-end segment [72] Question: New residential construction market - Analyst asked about trends in new residential construction and expectations for the second half of the year [80] - Management anticipated a slight decline in new residential construction activity but did not foresee a dramatic drop [81]

Financial Data and Key Metrics Changes - Sales for the fourth quarter reached $8.5 billion, a 6.9% increase year-over-year, driven by organic growth of 5.8% and acquisition growth of 1.1% [3][4] - Gross margin improved to 31.7%, up 70 basis points from the previous year [3][4] - Operating profit for the quarter was $972 million, reflecting a 13.4% increase year-over-year [4][16] - Diluted EPS rose 16.8% to $3.48 compared to the prior year [4][16] - For the full year, revenue was $30.8 billion, a 3.8% increase, with operating profit of $2.84 billion, up 0.6% [7][8] Performance by Business Lines - HVAC revenue slightly declined due to market conditions, while commercial mechanical revenue grew 21% and waterworks revenue increased 15% [6][7] - Ferguson Home, a unified brand for residential building and remodel, saw a revenue growth of 3% in the fourth quarter [7][14] - The industrial, fire and fabrication, and facility supply customer groups delivered a combined net sales growth of 5% [7] Performance by Markets - U.S. net sales increased by 7.1%, with non-residential revenue growth of approximately 15% [5][16] - Residential end markets remained subdued, with flat revenue due to weakened new construction starts and soft demand in repair, maintenance, and improvement [5][6] - Canada saw net sales growth of 4.8%, with a 0.3% organic growth and a 4.9% contribution from acquisitions [16] Company Strategy and Industry Competition - The company is focused on HVAC expansion, waterworks diversification, and large capital projects, which are key growth areas [4][10] - The multi-customer group approach is emphasized as a competitive advantage in managing complex projects [12][35] - The company completed four acquisitions in the fourth quarter, enhancing its capabilities in HVAC and waterworks [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in medium-term market conditions despite current uncertainties, leveraging multi-year tailwinds in both residential and non-residential markets [5][24] - The outlook for calendar year 2025 anticipates mid-single-digit revenue growth, with operating margins expected to improve slightly [23][24] - Management acknowledged challenges in the residential market but highlighted strong performance in non-residential sectors, particularly large capital projects [30][80] Other Important Information - The company plans to change its fiscal year-end from July 31 to December 31, allowing for better focus during peak seasons [21][22] - A quarterly dividend of $0.83 per share was declared, representing a 5% increase over the prior year [18] Q&A Session Summary Question: Outlook on growth and end market dynamics - Management noted that while residential markets are expected to be down low to mid-single digits, non-residential markets showed resilience with a 7% growth in Q4 [29][30] Question: Details on large capital projects and bidding activity - Management confirmed strong bidding activity across various sectors, including data centers and biotechnology, with healthy backlogs in commercial mechanical and waterworks [41][42] Question: Pricing and margin expectations - Management indicated that pricing is expected to stabilize with modest inflation anticipated, while gross margins are expected to normalize around 30% to 31% [44][47] Question: Insights on residential remodel market - Management acknowledged continued pressure in the remodel market but noted that higher-end projects are performing better, with Ferguson Home showing a 3% growth [71] Question: Performance in the industrial market - Management explained that the industrial market is experiencing slower growth due to commodity deflation but remains optimistic about market share gains [81]

Financial Performance - Q4 2025 - Net sales reached $8.5 billion, a 6.9% increase compared to Q4 2024, driven by market outperformance[6] - Organic growth contributed 5.8% and acquisitions added 1.1% to the net sales growth[6] - Adjusted operating profit was $972 million, up 13.4% from Q4 2024, with an adjusted operating margin of 11.4%, a 60 bps increase[6] - Adjusted diluted EPS increased by 16.8% to $3.48[6] Financial Performance - FY2025 - Net sales for FY2025 totaled $30.8 billion, a 3.8% increase compared to FY24[13] - Adjusted operating profit was $2.8 billion, a 0.6% increase compared to FY24[13] - Adjusted diluted EPS reached $9.94, a 2.6% increase compared to FY24[13] - The company generated $1.9 billion in operating cash flow[13] Capital Deployment & Balance Sheet - Capital deployment included $483 million, with 4 acquisitions completed during the quarter, share repurchases of $189 million, and dividends of $165 million[6] - The balance sheet remains strong, with net debt to adjusted EBITDA at 1.1x[6] - Share repurchases completed during the fiscal year totaled $948 million, with approximately 5.0 million shares repurchased[36] - The share repurchase program has an outstanding balance of approximately $1.0 billion[36] Market Performance & Outlook - US net sales grew by 7.1% in Q4 2025, compared to a 1.3% growth in Q4 2024[8] - For FY2025, the company estimates a market decline of approximately 2% in the US, while Ferguson US organic revenue grew by 3.2%[16] - Calendar year 2025 guidance includes mid-single digit growth in net sales and an adjusted operating margin between 9.2% and 9.6%[39]

Core Insights - The plumbing-supplies company exceeded sales and earnings estimates for its fiscal fourth quarter [1] Group 1 - The company reported strong performance in its fiscal fourth quarter, indicating robust demand in the plumbing supplies sector [1]

Core Insights - Ferguson Enterprises Inc. reported strong results for the year, highlighting the effectiveness of its strategy in a challenging market environment [1] - The company focused on key growth areas, completed nine acquisitions, increased its dividend, and continued its share buyback program [1] Financial Performance - The company’s associates delivered strong results, indicating robust operational performance [1] - Ferguson maintained a strong financial position while executing its growth strategies [1]