From The Motley Fool · Motley Fool Transcribing · · 2m
Ferguson Q3 2026 Earnings Report
Ferguson boosts Q3 sales by 9.5% with industrial and HVAC growth amid residential market pressure.
In brief
Ferguson boosts Q3 sales by 9.5% with industrial and HVAC growth amid residential market pressure. Ferguson reported $9 billion in Q3 sales, 9.5% growth driven by industrial and HVAC expansion, while raising full-year sales guidance to 7%. Originally reported by The Motley Fool.
Q3 Sales Performance
Net sales reached $9.0 billion, a 9.5% increase driven by organic growth and acquisitions.
Organic Growth
Organic growth stood at 7.0%, reflecting volume momentum and operational execution across primary markets.
Adjusted Operating Profit
Adjusted operating profit grew 8.9% to $962 million, supported by disciplined cost management.
Adjusted Diluted EPS
Adjusted diluted earnings per share rose 7.9% to $3.43, primarily from operating profit growth.
Gross Margin
Gross margin decreased 40 basis points to 30.9%, impacted by supplier price timing.
U.S. Net Sales
U.S. net sales grew 10.2% to $8.6 billion, with 15% nonresidential growth and 6% residential growth.
Industrial Revenue
Industrial revenue grew 55% with 32% organic growth from power generation and manufacturing projects.
Commercial/Mechanical Revenue
Commercial/mechanical revenue grew 17%, supported by data center and pharmaceutical projects.
HVAC Revenue
HVAC revenue grew 15% through organic expansion and strategic acquisitions.
Waterworks Revenue
Waterworks revenue grew 5% leveraging public works and municipal infrastructure projects.
Acquisition Investment
Acquisition investment totaled $1.7 billion to complete three acquisitions, including FloWorks.
Net Debt to EBITDA
Net debt to adjusted EBITDA remained at 1.7x, within the target range of 1 to 2x.
Full Year Guidance
Full year net sales guidance increased to approximately 7% growth, up from mid-single digit expectations.
Operating Margin Guidance
Adjusted operating margin guidance raised to 9.6% to 9.8% from previous 9.5% to 9.8% range.
Interest Expense Guidance
Interest expense guidance increased to approximately $235 million due to higher debt balances.
Capital Expenditures
Capital expenditures guidance set at approximately $425 million for supply chain expansion and technology.
The short version
Ferguson reported $9 billion in Q3 sales, 9.5% growth driven by industrial and HVAC expansion, while raising full-year sales guidance to 7%.
