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Jan 31, 2025
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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.
Revenue by Geographic Location
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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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