Ferguson plc(US:FERG) Yahoo Finance·2025-09-16 14:22Core 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]