Ferguson Enterprises Inc. · NYSE:FERG
Ferguson Enterprises — Q2 2026 Earnings Presentation
26 slides from Ferguson Enterprises's earnings presentation, Aug 10, 2026
Slide 1: Second Quarter Results Presentation
Second Quarter Results Presentation Quarter Ended June 30, 2026
Slide 2: Legal disclaimer: Cautionary note on forward-looking statements
Legal disclaimer Cautionary note on forward-looking statements Certain information included in this presentation and discussed on the conference call that this presentation accompanies is forward-looking, including within the meaning of the Private Securities Litigation Reform Act of 1995, and invol
Slide 3: Legal disclaimer: Non-GAAP Financial Information
Legal disclaimer Non-GAAP Financial Information This presentation contains certain financial information that is not presented in conformity with U.S. generally accepted accounting principles ("U.S. GAAP”). These non-GAAP financial measures include, but are not limited to, adjusted operating profit,
Slide 4: Introduction and Q2 Highlights
Introduction and Q2 Highlights Kevin Murphy, CEO
Slide 5: Second quarter financial highlights
Second quarter financial highlights Net sales Continued execution and share gains $8.8B Organic growth +3.8% +4.6% vs Q2 CY25* Acquisition growth +1.0% Adj. operating profit** Strong gross margin, productivity and disciplined cost management $932M Adjusted operating margin** of 10.7%, down 10 bps +
Slide 6: Balanced approach to US end markets
Balanced approach to US end markets Three months ended June 30, % of US net sales* 2026 2025 US net sales growth/(decline) US net sales growth/(decline) Residential ~50% +2% +2% Non-residential ~50% +8% +13% 100% +5.0% +6.8% * Residential / Non-residen tial pro portions d erived fro m manag ement es
Slide 7: US second quarter net sales
US second quarter net sales Three months ended June 30, Customer group % of US net sales* 2026 2025 US net sales growth/(decline) US net sales growth/(decline) Waterworks 24% +3% +15% Commercial / Mechanical 16% +15% +20% Industrial 7% +18% +6% Facilities Supply 4% +5% +2% Fire & Fabrication 2% (13%
Slide 8: FloWorks overview
FloWorks overview • Founded in 1961 in Houston, TX ~$1B 15 Revenue Brands • A leading distributor and service provider of specialty valves and flow control solutions 1,000+ 60+ • North American footprint across the US Associates Locations and Canada • Balanced exposure to a wide variety of highly te
Slide 9: High-growth end markets align to structural trends
High-growth end markets align to structural trends Large capital Water projects infrastructure 9
Slide 10: Why FloWorks: Transaction overview
Why FloWorks: Transaction overview Expected to close Q3 2026 Compelling value creation • Increases total addressable market to $400B • Increases exposure to growth markets with ~$1.6B ~10x Purchase price Acquisition multiple** secular tailwinds • Expands non-residential value-added capabilities • Ad
Slide 11: Financial Review
Financial Review Bill Brundage, CFO
Slide 12: Second quarter financial highlights
Second quarter financial highlights Three months ended June 30, $M (except per share amounts) 2026 2025 Change Net sales 8,751 8,363 +4.6% Gross margin 31.0% 31.2% (20) bps Adjusted operating profit* 932 906 +2.9% Adjusted operating margin* 10.7% 10.8% (10) bps Adjusted earnings per share – diluted*
Slide 13: Segment financial highlights
Segment financial highlights Three months ended June 30, $M 2026 2025 Change Net sales US 8,343 7,947 +5.0% Canada 408 416 (1.9%) Total net sales 8,751 8,363 +4.6% Adjusted operating profit* US 925 899 +2.9% Canada 22 23 (4.3%) Central and other costs (15) (16) Total adjusted operating profit 932 90
Slide 14: Half year financial highlights
Half year financial highlights Six months ended June 30, $M (except per share amounts) 2026 2025 Change Net sales 16,223 15,576 4.2% Gross margin 31.0% 31.0% Flat Adjusted operating profit* 1,579 1,503 +5.1% Adjusted operating margin* 9.7% 9.6% +10 bps Adjusted earnings per share – diluted* $5.67 $5
Slide 15: Cash flow – half year
Cash flow – half year Six months ended June 30, $M 2026 2025 Adjusted EBITDA* 1,705 1,614 Working capital (493) (107) Interest and tax (515) (335) Other items 19 (49) Operating cash flow 716 1,123 Capex (234) (141) Proceeds from the sale of assets 17 15 Free cash flow* 499 997 * This is a non-GA AP
Slide 16: Capital allocation
Capital allocation 1. Organic growth 2. Acquisitions 3. Dividends 4. Surplus capital returns Working capital • Completed 7 acquisitions • Quarterly dividend of $0.89 • $438M share repurchases • Inventory to support order year to date, investing a total per share completed in fiscal year to date volu
Slide 17: Calendar 2026 guidance (updated)
Calendar 2026 guidance (updated) Prior calendar 2026 guidance Updated calendar 2026 guidance January 1 – December 31, 2026 January 1 – December 31, 2026 Net sales Low to mid-single digit growth Mid-single digit growth Adjusted operating margin* 9.4% - 9.8% 9.5% - 9.8% Interest expense ~$200 million
Slide 18: Closing Remarks
Closing Remarks Kevin Murphy, CEO
Slide 19: Closing remarks
Closing remarks Thank you to our associates. • Our associates continued to execute for our customers, driving market outperformance, revenue and profit growth in the quarter. • We remain focused on operational execution while our cash generative model and disciplined approach to capital allocation c
Slide 20: Join us for Q&A
Join us for Q&A
Slide 21: Appendix
Appendix
Slide 22: Reconciliation of Net Income to Adjusted Operating Profit and Adjusted EBITDA
Reconciliation of Net Income to Adjusted Operating Profit and Adjusted EBITDA Three months ended June 30, Six months ended June 30, (In millions) 2026 2025 2026 2025 Net income $666 $634 $1,080 $979 Provision for income taxes 180 156 326 280 Interest expense, net 52 49 97 95 Other (income) expense,
Slide 23: Net Debt : Adjusted EBITDA reconciliation
Net Debt : Adjusted EBITDA reconciliation Net debt comprises bank overdrafts, bank and other loans and derivative financial instruments, excluding lease liabilities, less cash and cash equivalents. Long-term debt is presented net of debt issuance costs. A rolling 12-month adjusted EBITDA is used in
Slide 24: Adjusted EBITDA (rolling 12-month) reconciliation
Adjusted EBITDA (rolling 12-month) reconciliation Adjusted EBITDA is net income before charges/credits relating to depreciation, amortization, impairment and certain non-GAAP adjustments. Twelve months ended June 30, (In millions, except ratios) 2026 2025 Net income $2,107 $1,857 Provision for incom
Slide 25: Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS - Diluted
Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS - Diluted Three months ended June 30, Six months ended June 30, (In millions, except per 2026 2025 2026 2025 share amounts) per share(1) per share(1) per share(1) per share(1) Net income $666 $3.43 $634 $3.21 $1,080 $5.56 $979 $4.9
Slide 26: Thank You
#4 FERGUSON a Thank You [4 /