# Ferguson Q3 2026 Earnings Report

> Ferguson boosts Q3 sales by 9.5% with industrial and HVAC growth amid residential market pressure.
- Title: Ferguson Q3 2026 Earnings Report · The Motley Fool | Shortify
- Summary: Ferguson boosts Q3 sales by 9.5% with industrial and HVAC growth amid residential market pressure.
- Keywords: ferguson, q3 2026, earnings call, industrial growth, hvac expansion, residential construction, acquisitions, net debt, The Motley Fool
- Source: The Motley Fool — https://fool.com/earnings/call-transcripts/2026/11/09/ferguson-ferg-q3-2026-earnings-call-transcript
- Author: Motley Fool Transcribing
- Published: 2026-11-09T20:54:42+00:00
- Read time: 1 min
- Topics: ferguson, q3 2026, earnings call, industrial growth, hvac expansion, residential construction, acquisitions, net debt, finance, money
## 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.
## Key takeaway

Ferguson reported $9 billion in Q3 sales, 9.5% growth driven by industrial and HVAC expansion, while raising full-year sales guidance to 7%.