Ferguson Enterprises (FERG) FY2025 results: revenue $30.8 billion, up 3.8% on the year

Ferguson calls itself the largest value-added distributor serving the water and air specialised professional in the North American construction market. It sells plumbing, heating, ventilation and air conditioning products, appliances, lighting, pipes, valves and fittings and water and wastewater products through distribution centres, branches, counter service, sales associates, showrooms and e-commerce. The company kept businesses across Europe, Canada and the United States through the 1900s, shifted to North America in the early 2000s and disposed of the European operations; after a restructuring, Ferguson Enterprises Inc. became the ultimate parent in August 2024. The shares are listed on the New York Stock Exchange and the London Stock Exchange, and the head office is in Newport News, Virginia. Reporting runs on a geographic basis, with two segments, the United States and Canada.

United States

The segment was 95% of net sales in each of fiscal 2025, 2024 and 2023 and trades mainly under the Ferguson brand, selling to residential and non-residential customers. At 31 July 2025 it ran 1,519 branches, 10 regional distribution centres and five market distribution centres used for branch replenishment and final mile delivery. The network covers all 50 states with approximately 32,000 associates, and the company treats the same-day and next-day availability it allows as a competitive advantage and a customer requirement.

Canada

The segment was 5% of net sales in each of those three years and trades mainly under the Wolseley brand, supplying plumbing, heating, ventilation and refrigeration products to residential and commercial contractors. It also supplies specialised water and wastewater treatment products to residential, commercial and infrastructure contractors, and pipes, valves and fittings to industrial customers. At 31 July 2025 it ran 227 branches, one regional distribution centre and one market distribution centre with approximately 3,000 associates.

The model

Residential and non-residential markets are each roughly half of net sales, and within them repair, maintenance and improvement work is about two-thirds and new construction about one-third, on management's estimates. The company states that the markets are highly fragmented, with no single distributor dominating any of them, and that it is among the top distributors in most of the end markets it serves, including residential, commercial, civil and infrastructure and industrial. Its business sits between a large fragmented supplier base and an even larger, more fragmented customer base: at 31 July 2025 it had approximately 37,000 suppliers, none more than 5% of inventory purchases, and no customer was more than 1% of fiscal 2025 net sales. Sales channels run from inside and outside sales teams, sales centres, digital commerce and system-to-system links to counter sales and showrooms, with customised services such as virtual design, fabrication, valve actuation, pre-assembly, kitting, installation and project management.

Products and supply chain

Products include branded goods and own brand lines sold exclusively by the company, generally available from several sources and not usually subject to supply constraints in normal conditions. Approximately 95% of what is sold in the United States comes from suppliers based there, and approximately 90% of what is sold in Canada from Canadian suppliers. Basic products carrying large amounts of commodity-priced material, mostly plastic, copper and steel, can be up to approximately 15% of annual net sales, so price swings in those commodities, and to a lesser extent in fuel, move operating costs. The supply chain reaches those suppliers and more than one million unique products a year, through three import centres, 11 regional distribution centres, 1,746 branches and six market distribution centres with automated picking and replenishment for most items. Customers can take delivery, collect from branches, counters and locker locations, or have goods shipped direct, with after-sales warranty, credit, project-based billing, returns and maintenance support.

Competition, seasons and people

Competitors are very few large distributors alongside many small local ones and mid-sized regional ones, and the company states that acquisitions remain a core part of its growth plan, focused on bolt-ons to the branch network and on further capabilities. It argues that its network of suppliers, associates, branches and distribution centres gives it scale and expertise that mostly local competitors lack. The business is not highly seasonal, though sales are generally highest in the fourth fiscal quarter, which begins in the North American spring. At 31 July 2025 it employed approximately 35,000 associates worldwide, full-time, part-time, seasonal and temporary, approximately 32,000 in the United States and 3,000 in Canada.

From Ferguson's annual report on Form 10-K for the year ended 31 July 2025. The filing

Written from the 10-K filed 26 September 2025: read the full 10-K.