Brasada Capital Management’s Views on Ferguson Plc (FERG)

Group 1 - Brasada Capital Management's Q3 2025 investor letter indicates that the market is entering the fourth quarter with equities near all-time highs and easing monetary policy, suggesting potential for continued momentum despite signs of a capital expenditure bubble [1] - The firm is selectively investing in companies with strong moats and cash flows while avoiding balance-sheet risks [1] Group 2 - Ferguson Enterprises Inc. (NYSE:FERG) is highlighted as a key stock, with a one-month return of -6.01% and a 52-week gain of 21.71%, closing at $228.20 per share on December 11, 2025, with a market capitalization of $45.818 billion [2] - Ferguson Enterprises Inc. is the largest scaled specialty distributor for North American plumbing, HVAC, and waterworks, with revenue split approximately 51% residential and 49% non-residential, and 60% from repair & replace (R&R) and 40% from new housing builds [3] - About 85% of Ferguson's revenue comes from finished goods, with plumbing making up around 50% of the product mix, and approximately 95% of revenue generated in the U.S. [3]