Ferguson Enterprises Stock Surges 5% on Strong Q4 Earnings and Shareholder Returns

Ferguson Enterprises Inc. (FERG) shares rallied over 5% to $225.46 following a robust fourth-quarter performance that exceeded market expectations. The plumbing and HVAC distributor reported $8.5 billion in sales, marking 6.9% year-over-year growth, with adjusted EPS jumping 59% to $3.48.

Margin expansion drove the outperformance, with gross margin improving 70 basis points to 31.7% and operating margin reaching 10.9%. The company's strategic acquisitions and 15% growth in non-residential revenue offset weakness in residential markets.

Investors cheered Ferguson's capital allocation moves, including a dividend boost and $948 million in share repurchases. Management's guidance of mid-single-digit growth for fiscal 2025 suggests continued momentum in commercial construction markets.