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.
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