Ferguson Enterprises Inc (NYSE:FERG) stock fell 1.26% (As on September 17, 11:24:55 AM UTC-4, Source: Google Finance) after the company topped Wall Street’s forecasts for earnings and sales for the fourth quarter of FY 25. Organic revenue grew 5.8% with a further 1.1% from acquisitions. Price inflation was approximately 2%. Gross margin was 31.7%, an increase of 70 basis points over last year, driven by our associates’ strong execution and the timing and extent of supplier price increases. Operating expenses continued to be diligently managed while we continued to invest in core capabilities for future growth. Adjusted operating profit of $972 million (11.4% adjusted operating margin) was 13.4% ahead of last year. During the year the company acquired nine businesses which in aggregate generate annualized revenue of approximately $300 million.

Moreover, net sales in the US business grew 7.1%, with organic revenue growth of 6.1% and a further 1.0% from acquisitions. Residential end markets, representing approximately half of US revenue, remained muted. New residential housing starts and permit activity weakened during the second half of the fiscal year. Non-residential end markets, representing approximately half of US revenue, showed continued resilience with non-residential revenue growing by approximately 15% in the fourth quarter. Non-residential waterworks projects saw solid demand in the quarter with strong growth in commercial and civil/infrastructure. Net sales of Canada grew by 4.8%, with organic revenue growth of 0.3% and a further 4.9% contribution from acquisitions, partially offset by a 0.4% adverse impact from foreign exchange rates.

FERG in the fourth quarter of FY 25 has reported the adjusted earnings per share of $3.48, beating the analysts’ estimates for the adjusted earnings per share of $3.29. The company had reported the adjusted revenue growth of 6.9 percent to $8.50 billion in the fourth quarter of FY 25, beating the analysts’ estimates for revenue of $8.40 billion.

Additionally, net debt to adjusted EBITDA at July 31, 2025 was 1.1x and during the year the company invested $0.3 billion in capital expenditures, paid $0.5 billion of dividends, invested $0.3 billion in nine acquisitions, and repurchased 5.0 million of the outstanding shares equating to $0.9 billion. The company have a remaining outstanding balance of $1.0 billion under the current share repurchase program at July 31, 2025. The company have declared a quarterly dividend of $0.83. The dividend will be paid on November 7, 2025 to stockholders of record as of September 26, 2025. This brings the full year dividend to $3.32, representing a 5% increase over the prior year.