Ferguson on Tuesday posted stronger sales, earnings and margins both in the fourth quarter of last year and for 2025 as a whole.
The Virginia-based plumbing and PVF distributor said that net sales climbed to nearly $7.5 billion between October and December, an increase of 3.6% compared to the same quarter of 2024.
The company said that total included organic growth of 3% and a 0.9% contribution from its recent acquisitions, along with an adverse impact of 0.3% related to foreign exchange rates and a divestment in Canada. Company officials said that price inflation was in the “low to mid-single digits.”
Ferguson’s quarterly gross profit rose from $2.1 billion to $2.3 billion year-over-year, and operating profit jumped 17%, from $509 million to $596 million. Gross margin increased by 70 basis points to 31%, while operating margin rose by 40 basis points to 8.9%. Net income increased from $356 million to $389 million.
For the full year, Ferguson reported $31.3 billion in net sales — up 5% compared to 2024 — and net income of just over $2 billion.
Ferguson CEO Kevin Murphy highlighted “double digit non-residential growth during the year” as well as its performance against “a challenging residential market.” The company’s initial 2026 forecast anticipates sales growth in the “low to mid-single” digits and an adjusted operating margin of between 9.4% and 9.8%.
“While our markets remain mixed as we enter 2026, we expect another year of outperformance, strong operational execution and continued investment to expand our market leading capabilities and scale,” Murphy said in a statement.
Ferguson also announced the pending retirement of Vice President of Investor Relations and Communications Brian Lantz. The company named Pete Kennedy as its new VP of investor relations and Christine Dwyer as vice president of communications and public relations.
Ferguson’s industrial business ranked no. 15 on ID’s latest Big 50 list.
