Ferguson Enterprises Inc. (NYSE:FERG) on Tuesday reported March quarter FY26 results.

Earnings Snapshot

Sales for the March ending quarter rose 3.6% year over year (Y/Y) to $7.50 billion, beating the $7.4 billion estimate. Adjusted EPS rose 9.1% Y/Y to $2.28, which beat the $2.19 estimate.

The plumbing and air solutions provider stated that the revenue increase reflected 2.8% organic growth and 0.8% acquisition growth.

Gross margin expanded 30 basis points to 31.0% in the quarter. Adjusted operating profit increased 8.4% Y/Y to $647 million, with the margin expanded by 40 basis points Y/Y to 8.7% in the quarter.

Ferguson reported an adjusted EBITDA of $711 million, up 9.2% Y/Y.

Segment Performance

U.S. net sales rose 3.5%, led by 2.9% organic growth and a 0.6% boost from acquisitions.

Residential markets (about half of U.S. revenue) remained weak, with soft new construction and muted repair and remodeling demand, resulting in a 1% decline in residential sales.

Non-residential demand was stronger, with revenue up 8%. This is led by share gains driven by scale, multi-customer engagement, and value-added solutions, along with steady large project activity, improving order volumes, and healthy bidding momentum.

In Canada, net sales rose 5.5%, supported by a 5.8% boost from acquisitions. Market conditions in Canada remained soft, especially in residential.

Management Commentary

Ferguson CEO Kevin Murphy said, “While the economic environment remains uncertain, we expect to continue to outperform the market by deploying scale locally while leveraging the long-term growth drivers of water infrastructure, large capital projects, climate and comfort and aging and underbuilt housing.”

Outlook

For 2026, the company reiterated its outlook for net sales to grow in low to mid-single digits and an adjusted operating margin of 9.4% – 9.8%.

FERG Price Action: Ferguson Enterprises shares were down 2.93% at $253.17 at the time of publication on Tuesday, according to Benzinga Pro data.

Photo via Shutterstock