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Jan 31
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Ferguson Q2 2025 Earnings Report
Ferguson reported revenue growth but faced margin pressures in Q2 2025.
Key Takeaways
Ferguson reported total revenue of $6.87 billion for Q2 2025, reflecting a 3.0% increase year-over-year. Despite revenue growth, operating profit declined by 14.0% to $410 million, primarily due to lower margins impacted by persistent commodity price deflation. Adjusted EBITDA stood at $502 million, down 11.6% from the previous year. Diluted earnings per share decreased to $1.38, while adjusted diluted EPS was $1.52.
Revenue grew 3.0% to $6.87 billion, driven by organic growth and acquisitions.
Operating margin declined to 6.0% due to cost inflation and lower pricing.
Net income fell 14.3% year-over-year to $276 million.
Adjusted EBITDA decreased by 11.6% to $502 million.
Ferguson
Ferguson
Ferguson Revenue by Segment
Ferguson Revenue by Geographic Location
Revenue by Segment
USA Revenue
CapyFin.comCanada Revenue
CapyFin.comRevenue by Geographic Location
USA Revenue
CapyFin.comCanada Revenue
CapyFin.com Forward Guidance
Ferguson expects continued revenue growth with revised operating margin guidance for fiscal 2025.
Positive Outlook
- Net sales projected to see low single-digit growth.
- Company market outperformance expected to continue.
- Completed acquisitions to contribute positively to revenue.
- Adjusted effective tax rate expected to remain at ~26%.
- Strong balance sheet supports continued share repurchases.
Challenges Ahead
- Operating margin guidance revised downward to 8.3% - 8.8%.
- Persistent commodity price deflation continues to impact margins.
- Macroeconomic uncertainty remains a challenge.
- Interest expenses expected to remain between $180M - $200M.
- One fewer sales day in Q3 could impact quarterly revenue.
Revenue & Expenses
Visualization of income flow from segment revenue to net income