Ferguson plc (NYSE: FERG) Q3 2025 Earnings Call | 5/29/2025

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Ferguson plc (NYSE: FERG) reported strong Q3 2025 results on May 29, 2025, with net sales rising 4.3% year-over-year to $7.62 billion, driven by 5% organic growth and a 1% contribution from acquisitions. The company’s adjusted operating profit grew 6.1% to $715 million, and adjusted operating margin expanded by 20 basis points to 9.4%—a result of robust volume growth, targeted gross margin actions, and moderating deflation. Gross margin improved to 31.0%, up 50 basis points from last year, reflecting effective pricing strategies and cost management. Adjusted diluted earnings per share jumped 7.8% to $2.50, though reported EPS declined 5% to $2.07 due to non-recurring restructuring charges. Revenue and EPS both came in slightly below analyst expectations, but the stock surged over 11% as investors responded positively to operational execution and raised guidance. Ferguson updated its full-year 2025 outlook, now expecting low to mid-single-digit revenue growth and an adjusted operating margin of 8.5%–9.0%, up from prior guidance of 8.3%–8.8%. The company saw balanced growth across both residential (up 2%) and non-residential (up 7%) markets, with standout performances in Waterworks (up 12%) and HVAC (up 10%). The U.S. business, which accounts for the majority of sales, grew 4.5% to $7.29 billion, while Canada was flat. CEO Kevin Murphy highlighted the company’s ability to outperform the market, manage costs, and leverage tailwinds in both residential and non-residential sectors, despite ongoing macroeconomic uncertainty and tariff risks. About Inside Ticker: For more expert analysis and real-time updates on Ferguson plc (NYSE: FERG) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #Ferguson #FERG #EarningsCall #Q32025 #Distribution #Plumbing #HVAC #StockMarket #Investing #InsideTicker