50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

Ferguson maintains steady growth amid market challenges

Published 12/10/2024, 07:48 PM

NEWPORT NEWS, Va. - Ferguson, a leading distributor in the North American construction market, reported a slight uptick in first-quarter sales, achieving $7.8 billion, which marks a 0.8% increase compared to the prior year. The company noted a 3% growth in sales volume, which was partially offset by a 2% deflation in commodity prices.

Despite facing market headwinds and commodity price deflation, Ferguson's gross margin saw a minor decrease of 10 basis points from the previous year, landing at 30.1%. The operating margin stood at 8.6%, with an adjusted figure of 9.1%. Diluted earnings per share for the quarter were reported at $2.34, or $2.45 on an adjusted basis.

The company declared a quarterly dividend of $0.83 per share, reflecting a 5% increase from the prior year. Ferguson also completed one acquisition during the quarter and another subsequent to the quarter's end, continuing its strategy of market consolidation through acquisitions.

Ferguson's CEO, Kevin Murphy, stated that the company's associates have remained focused on execution, delivering revenue growth in the quarter despite continued market challenges. He expressed confidence in Ferguson's market performance, supported by a strong balance sheet and cash generative business model.

The company's financial guidance for fiscal year 2025 remains unchanged, anticipating modest full-year revenue growth and continued market outperformance. Ferguson expects to navigate a challenging near-term market environment by investing in scale and capabilities.

The balance sheet remains robust, with net debt to adjusted EBITDA at 1.2x. Share repurchases during the quarter amounted to $256 million, with approximately $600 million remaining under the current share repurchase program.

Ferguson's performance in the U.S. saw a 0.5% increase in net sales, while the Canadian market experienced a more significant growth of 6.3%. The company completed the acquisition of Fresno Pipe and Supply during the quarter and subsequently acquired Templeton and its affiliate, TEMSCO, post-quarter.

This financial report is based on a press release statement from Ferguson, providing insight into the company's latest quarterly performance and strategic endeavors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.