Ferguson plc reported Q2 2025 (calendar quarter ended January 31, 2025) with revenue of USD 6.872 billion, up 2.98% year over year but down 11.58% quarter over quarter. Gross profit was USD 2.042 billion, yielding a gross margin of 29.7%, while operating income totaled USD 410 million and EBITDA was USD 510 million, corresponding to operating and EBITDA margins of 5.97% and 7.42%, respectively. Net income came in at USD 276 million and diluted earnings per share (EPS) USD 1.38, translating to net and earnings margins of 4.02% and 2.01% on a per-share basis. The quarter reflected seasonal and mix-related headwinds, with notable working capital changes driving cash flow dynamics. Cash flow from operations was USD 340 million and free cash flow was USD 259 million, supporting a constructive but elevated balance sheet leverage profile. Ferguson ended the period with USD 764 million in cash and cash equivalents, total debt approximately USD 6.02 billion, and net debt around USD 5.26 billion, yielding a net debt to EBITDA roughly 10.3x. Despite robust annual revenue, profitability and cash generation were pressured by higher working capital and a transition in mix, contributing to a softer quarter compared with the prior year. The business remains a leading US/Canada plumbing and heating distributor with a broad footprint and significant digital and service-enabled capabilities, but the valuation remains reflective of a high-quality, cyclical franchise with leverage-driven sensitivities to housing and construction cycles.