Ferguson plc reported QQ1 2025 results with USD 7.772 billion in revenue, marking a modest year-over-year gain of about 0.8% and a sequential decline of 2.2% driven by seasonality and working-capital dynamics. Gross profit reached USD 2.34 billion for a gross margin of 30.1%, essentially flat versus a year ago but down on a quarter-to-quarter basis due to mix and cost dynamics. Operating income was USD 665 million (8.56% margin) and EBITDA USD 760 million (9.78% margin), translating to a net income of USD 470 million and a 6.05% net margin. EPS stood at USD 2.34 (diluted USD 2.33), reflecting a yoy and qoq mix of margin pressures and offsetting efficiency gains.
Cash flow remains robust, with net cash provided by operating activities of USD 345 million and free cash flow of USD 268 million. Ferguson ended the quarter with USD 654 million in cash and equivalents and a net debt position of USD 4.081 billion, underpinned by a total debt load of USD 5.638 billion. Capital allocation included USD 256 million in share repurchases and USD 158 million in dividends paid during the period, contributing to a negative financing cash flow of USD 214 million. The company’s leverage remains material, but interest coverage (~14.5x) and liquidity metrics (current ratio 1.68, quick ratio 0.91) support ongoing operational flexibility. Valuation sits at roughly 21x P/E and 7x P/B, implying a premium to broad industrial peers, justified by Ferguson’s expansive U.S. branch network and persistent exposure to housing-related demand, albeit with cyclicality risk.
Looking ahead, management did not publish explicit full-year guidance in the provided data. The near-term outlook for Ferguson hinges on U.S. construction activity, housing markets, and infrastructure spend, alongside ongoing supply-chain normalization and working-capital management. The investment case rests on continued cash-flow generation, debt reduction flexibility, and disciplined capital allocation, including potential accretive acquisitions or targeted share repurchases that preserve balance-sheet strength.