Ferguson's U.S. Sales Jump 7% in Q4: What's Powering Its Growth?

Ferguson Enterprises Inc. FERG is benefiting from the strength in its U.S. business, driven by solid demand in the non-residential markets. In the fourth quarter of fiscal 2025 (ended July 2025), the company’s revenues from the non-residential markets jumped 15% year over year, which accounted for half of its U.S. business’ revenues. The surge in revenues was fueled by solid momentum in waterworks projects and commercial & civil infrastructure markets, with strength across large capital projects.

It's worth noting that revenues from the company’s waterworks and commercial & mechanical markets surged 15% and 21%, respectively. This uptick significantly benefited Ferguson’s U.S. business, which reported a 7% year-over-year revenue increase in the fiscal fourth quarter. However, soft repair, maintenance and improvement work across residential end markets partially offset this strength.

Ferguson has also been strengthening its business through strategic buyouts. For instance, FERG completed four acquisitions during the fiscal fourth quarter, which included Ritchie Environmental Solutions, HPS Specialties, Manufactured Duct & Supply Company and Water Resources. Acquisitions had a contribution of approximately 1% to the U.S. business’ sales in the fiscal fourth quarter.

Business Snapshot of FERG’s Peers

Among its major peers, Johnson Controls plc’s JCI Americas segment is gaining momentum, backed by solid demand for heating, ventilation and air conditioning (HVAC) platforms in data centers and strength in controls businesses. Organic revenues from Johnson Controls’ Americas segment increased 7% year over year in the third quarter of fiscal 2025 (ended June 2025).

Another peer, Fastenal Company FAST, has been focusing more on virtual platforms to boost customer engagement. Fastenal’s eBusiness solutions are designed to streamline business processes while leveraging local presence to provide the fastest possible service. During the second quarter of 2025, daily sales through eBusiness grew 13.5% year over year and contributed 30% to Fastenal’s total sales in the quarter.

FERG's Price Performance, Valuation and Estimates

Shares of Ferguson have surged 20.3% in the past year compared with the industry’s growth of 4.6%.

From a valuation standpoint, FERG is trading at a forward price-to-earnings ratio of 21.77X, above the industry’s average of 21.14X. Ferguson carries a Value Score of C.

The Zacks Consensus Estimate for FERG’s fiscal 2026 (ending July 2026) earnings has been on the rise over the past 60 days.

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research