Ferguson plc
FERG
$248.38 -0.46%
Exchange: NYSE | Sector: Industrials | Industry: Industrial Distribution
Q3 2024
Published: Jun 5, 2024

Earnings Highlights

  • Revenue of $7.31B up 2.4% year-over-year
  • EPS of $2.18 increased by 33.5% from previous year
  • Gross margin of 29.4%
  • Net income of 443.00M
  • "In the quarter, we saw revenue growth of 2.4% despite continued deflation of approximately 2%. We delivered resilient gross margins and appropriately managed cost to the volume environment, generating adjusted operating profit of $674 million, an increase of 2.6%." - Kevin Murphy
FERG
Company FERG

Executive Summary

Ferguson plc reported a resilient QQ3 2024 with modest revenue growth and through-cycle EBITDA margins maintaining a high level of profitability in a deflationary input-cost environment. Reported revenue was $7.309 billion, up 2.4% year over year, aided by a 1.7% acquisition contribution and a one-time 1.6% uplift from an extra sales day, offset by organic volume decline of 0.9% and continued approximately 2% price deflation. Management highlighted disciplined cost management and pricing execution, delivering adjusted operating profit of $674 million (up 2.6%), translating into an adjusted operating margin of about 9.3% for the quarter (vs. about 9.1% prior year). Net income rose to $443 million and adjusted diluted EPS to $2.32, up approximately 5.5% year over year. Ferguson generated strong operating cash flow of $643 million and free cash flow of roughly $572 million in the quarter, supporting a balance sheet with net debt to adjusted EBITDA of 1.0x. The company expanded its capital return program, boosting the quarterly dividend by 5% to $0.79 per share and extending its $1 billion share repurchase program. These dynamics underpin a positive but cautious near-term outlook, with full-year 2024 revenue expected to be broadly flat and adjusted operating margin guided narrowly to 9.2%–9.6%. Ferguson remains well-positioned to benefit from multiyear tailwinds in residential and nonresidential end markets while continuing to pursue bolt-on acquisitions to consolidate fragmented markets.

Key Performance Indicators

Revenue
Increasing
7.31B
QoQ: 9.52% | YoY: 2.35%
Gross Profit
Increasing
2.15B
29.38% margin
QoQ: 5.82% | YoY: 0.33%
Operating Income
Increasing
637.00M
QoQ: 33.54% | YoY: 28.17%
Net Income
Increasing
443.00M
QoQ: 37.58% | YoY: 31.85%
EPS
Increasing
2.19
QoQ: 38.61% | YoY: 33.54%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q2 2025 6,872.00 1.38 +3.0% View
Q1 2025 7,772.00 2.33 +0.8% View
Q4 2024 7,946.00 2.23 +1.4% View
Q3 2024 7,308.00 2.18 +2.4% View
Q2 2024 6,673.00 1.58 -2.2% View