Overview

• North America distributor's Q1 sales rose 3.6% year-over-year to $7.5 bln

• Adjusted EPS for Q1 increased 9.1% to $2.28

• Company authorized new $2 bln share repurchase program

Outlook

• Ferguson sees 2026 net sales growing low to mid-single digits

• Company expects 2026 adjusted operating margin of 9.4% to 9.8%

Result Drivers

• NON-RESIDENTIAL GROWTH - Strong non-residential revenue growth in the US, up 8%, driven by large capital projects and share gains

• ORGANIC AND ACQUISITION GROWTH - Sales rose 3.6% with 2.8% organic growth and 0.8% from acquisitions

• RESIDENTIAL WEAKNESS - Residential end markets remained challenged, with US residential revenue down 1% due to weak new construction and soft RMI activity

Company press release: ID:nBw5BVj55a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

• Wall Street's median 12-month price target for Ferguson Enterprises Inc is $278.00, about 6.6% above its May 4 closing price of $260.80

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 22 three months ago

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