Hello and welcome to CNBC. com. I'm Frank Holland, anchor of Worldwide Exchange.Today I'm joined by Kevin Murphy, the CEO of Ferguson, a global leader in HVAC, piping, and a number of other critical industries, not only for residential housing, but also for industrial production and for data centers. Kevin, thanks for joining us. >> Thank you for having me, Frank.Great to be with you again. >> All right, Kevin, we got to talk about the news a bit here. Um, government shutdown just started at midnight on Wed ...

Reece Ltd (Hub24 Ltd (REH share price in focusThe ASX:REH ) share price is down around 48.1% since the start of 2025. The ASX:HUB ) share price is 113.9% above its 52-week low.Reece Limited has been operating in Australia for more than 100 years, and is today the country’s largest plumbing and bathroom supplies business. While best known as a plumbing store, the brand has diversified to offer services and products across irrigation and pools, civil construction projects, and HVAC systems for heating, ventil ...

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]

Core Insights - Trout Capital Advisors acted as the exclusive financial advisor for HPS Specialties in its sale to Ferguson Enterprises, enhancing Ferguson's position in the specialty engineered product market [1][2] - The acquisition closed on June 16, 2025, marking a strategic advancement for Ferguson and expanding its footprint along the East Coast [2] - The sell-side process was competitive, attracting interest from both strategic acquirers and private equity investors, and was completed in under six months [3] Company Insights - HPS Specialties is a leading distributor and manufacturer's representative of specialty engineered products for HVAC, plumbing, and hydronic systems [1] - Ferguson Enterprises is a Fortune 500 company based in Newport News, Virginia, focused on providing innovative plumbing and HVAC solutions [2] Leadership and Advisory - HPS Specialties' leadership expressed appreciation for Trout Capital Advisors, highlighting their role in preparing the company for negotiations and securing a partnership with Ferguson [4] - Trout Capital Advisors is a boutique investment banking firm specializing in lower-middle market businesses, particularly founder- and family-owned companies [5]

Core Insights - CSW Industrials reported record revenue of $263.6 million for Q1 fiscal 2026, a 16.6% increase from the previous year, but fell short of analyst estimates [1][2] - Adjusted EPS was $2.85, missing consensus expectations, while organic sales declined by 2.8% [1][2] - The company faced challenges including integration costs, tariff pressures, and softness in key sectors [1][5] Financial Performance - Revenue for Q1 fiscal 2026 was $263.6 million, compared to $226.2 million in Q1 fiscal 2025, marking a 16.6% year-over-year increase [2] - Adjusted EPS increased by 2.5% from $2.78 in Q1 fiscal 2025 to $2.85, but was below the estimate of $3.17 [2] - Operating income was essentially flat at $54.9 million, while EBITDA rose by 5.2% to $68.7 million [2][7] - Free cash flow decreased by 3.2% from $59.6 million to $57.7 million [2][7] Business Segments Overview - CSW Industrials operates in three segments: Contractor Solutions, Engineered Building Solutions, and Specialized Reliability Solutions [3] - Contractor Solutions revenue increased by 22.6%, but organic revenue fell by 4.6% [8] - Specialized Reliability Solutions saw flat revenue, but operating income dropped by 26.7% due to commodity costs [8] - Engineered Building Solutions experienced modest revenue growth, but operating income declined due to tariff impacts [8] Acquisitions and Strategic Focus - The company has focused on expanding its HVAC/R and plumbing product offerings through acquisitions, including Aspen Manufacturing [4][9] - The integration of Aspen Manufacturing aims to enhance US-based manufacturing capabilities, mitigating tariff impacts [9] - Increased R&D spending in Engineered Building Solutions is aimed at developing new fire and smoke protection solutions, although this has led to near-term margin pressure [10] Future Outlook - Management expects full-year organic revenue growth and adjusted EBITDA growth for fiscal 2026 across all segments [11] - Consolidated EPS is anticipated to rise, although growth may lag behind EBITDA gains due to a higher share count and interest costs [11] - Ongoing risks include tariffs, input inflation, and challenges in restoring profitability in newly acquired units [12]