Executive Summary
Ferguson plc delivered QQ2 2024 results with USD 6.673 billion in revenue and a gross profit of USD 2.029 billion, yielding a gross margin of 30.4%. Operating income stood at USD 477 million, with an EBIT margin of 7.15% and net income of USD 322 million (EPS USD 1.58). The quarter showed material YoY declines across revenue, gross profit, operating income, net income, and EPS (revenue YoY -2.23%; net income YoY -13.90%; EPS YoY -12.71%), accompanied by a QoQ softness that intensified in profitability metrics (QoQ net income -37.96%; EPS -38.04%). These movements reflect a softer trading environment in the US residential and commercial plumbing markets and ongoing competitive dynamics, even as Ferguson preserves its cash generation profile. Free cash flow remained solid at USD 205 million, supported by USD 306 million of cash from operating activities and disciplined capital expenditure of USD 101 million. Net debt stood at USD 4.121 billion with total debt of USD 4.760 billion, yielding a net debt to EBITDA commentary around elevated leverage (not unusual for a capital-intensive distribution platform with substantial installed base and working-capital intensity). The liquidity position remains robust with USD 704 million of cash at period end and a current ratio of 1.80. Management commentary is not present in the provided transcript data; as such, the forward-looking view reflects the disclosed numbers and typical industry dynamics. Investors should monitor demand normalization in US construction activity, price realization, working capital efficiency, and refinancing risk given leverage levels.
Key Performance Indicators
QoQ: -13.43% | YoY:-2.23%
QoQ: -12.96% | YoY:-1.60%
QoQ: -35.45% | YoY:-13.11%
QoQ: -37.96% | YoY:-13.90%
QoQ: -38.04% | YoY:-12.71%
Key Insights
Revenue: USD 6.673B; Gross Profit: USD 2.029B; Gross Margin: 30.4%; Operating Income: USD 477M; Operating Margin: 7.15%; EBITDA: USD 560M; Net Income: USD 322M; Net Margin: 4.83%; EPS: USD 1.58; Shares (weighted avg): 203.4M; Free Cash Flow: USD 205M; Operating Cash Flow: USD 306M; Capex: USD (101)M; FCF per Share: USD 1.01; Debt: Total USD 4.760B; Net Debt: USD 4.121B; Cash End: USD 704M; Current Ratio: 1.80; Quick Ratio: 0.97; Cash Ratio: 0.13; CCC: ~60.8 days; DSO: 41.7 days; DIO: 76.9 days; ...
Financial Highlights
Revenue: USD 6.673B; Gross Profit: USD 2.029B; Gross Margin: 30.4%; Operating Income: USD 477M; Operating Margin: 7.15%; EBITDA: USD 560M; Net Income: USD 322M; Net Margin: 4.83%; EPS: USD 1.58; Shares (weighted avg): 203.4M; Free Cash Flow: USD 205M; Operating Cash Flow: USD 306M; Capex: USD (101)M; FCF per Share: USD 1.01; Debt: Total USD 4.760B; Net Debt: USD 4.121B; Cash End: USD 704M; Current Ratio: 1.80; Quick Ratio: 0.97; Cash Ratio: 0.13; CCC: ~60.8 days; DSO: 41.7 days; DIO: 76.9 days; DPO: 57.9 days; Dividend Yield: 0.41%; Dividend Payout: 48.2%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
6.67B |
-2.23% |
-13.43% |
| Gross Profit |
2.03B |
-1.60% |
-12.96% |
| Operating Income |
477.00M |
-13.11% |
-35.45% |
| Net Income |
322.00M |
-13.90% |
-37.96% |
| EPS |
1.58 |
-12.71% |
-38.04% |
Key Financial Ratios
operatingProfitMargin
7.15%
operatingCashFlowPerShare
$1.5
freeCashFlowPerShare
$1.01
dividendPayoutRatio
48.2%
Management Commentary
Note: The earnings transcript data is not provided in the input. As a result, themes below are based on disclosed financials and typical sector commentary. - Strategy and pricing: Management historically emphasized pricing discipline and mix optimization to protect margins in a soft demand environment. - Operations and efficiency: Focus on working capital efficiency and cost control to support free cash flow amidst revenue headwinds. - Market conditions: Residential and non-residential construction cycles in the US influence order intake and pricing power; industry construction demand appears to be softer versus the prior year, contributing to YoY and QoQ declines in profitability.
Forward Guidance
No explicit forward guidance is provided in the data supplied. Based on QQ2 2024 results and the current industrial distribution backdrop, near-term upside would hinge on a pickup in US housing and commercial construction activity, stabilization or improvement in input costs, and sustained pricing actions that protect gross margins. Key assumptions and indicators to monitor include: trajectory of US construction demand, channel mix (retail vs contractor) and online penetration, working capital efficiency, commodity price trends, inflation expectations, and the ability to refinance maturing debt given elevated net debt levels. Investors should watch management commentary for any updating guidance on revenue trajectory, margin targets, capex plans, and deleveraging progress.