Ferguson Enterprises Inc. reported higher quarterly revenue and earnings Tuesday, powered by another robust performance in nonresidential construction projects such as data centers and municipal infrastructure.
The distributor said sales for the quarter ending Oct. 31 rose 5.1% from a year earlier to $8.2 billion. Profits also improved as the company held firm on pricing and focused on faster-growing sectors.
Gross margin — the markup Ferguson earns on products it sells — increased to 30.7% from 30.1% a year ago. The company said tighter execution and product mix contributed to the improvement.
“We are particularly pleased with another quarter of double-digit non-residential revenue growth,” CEO Kevin Murphy said. “Our scale advantage and consistent market outperformance allow us to keep investing and returning capital to shareholders while maintaining a strong balance sheet.”
Ferguson said business serving residential construction — which makes up about half of its U.S. revenue — remained weak as new housing starts, permits, and remodeling activity softened. Residential sales fell 1% during the quarter.
The other half of its U.S. business — commercial and public projects — continued to surge. Nonresidential sales increased 12%, fueled by demand from big capital projects, especially data centers, as well as water and wastewater infrastructure.
Executives said bidding pipelines remain strong even though the pace of those large projects can be uneven from quarter to quarter.
The company completed the purchase of Moore Supply Co., expanding its HVAC presence in the Chicago metropolitan area. Ferguson also continued converting branches to carry both HVAC and plumbing products to tap contractors who work across both trades.
The company said its financial position remains solid even as it continues to invest in expansion, technology tools, and workforce training.
Ferguson said it expects about 5% revenue growth for calendar year 2025 and believes construction activity — especially in large projects — will remain a tailwind through next year.
Murphy said the company plans to continue leaning into data center development, aging infrastructure needs, and eventual recovery in the U.S. housing market.
“We remain confident in our markets over the medium term,” he said. “We will stay focused on supporting the complex project needs of the water and air specialized professional.”
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