<div id="readability-page-1"><div><ul> <li>Ferguson Enterprises recently reported first-quarter 2025 results showing higher sales, earnings and margins, increased its quarterly dividend to US$0.89, completed a US$208.75 million share repurchase tranche, updated full‑year guidance to about 5% net sales growth, and continued expanding through acquisitions such as Moore Supply Company.</li> <li>Together with a multi‑year buyback that has reduced its share count by 27.68 million shares and a 7% dividend increase, these moves highlight Ferguson’s focus on returning capital to shareholders while leaning into growth areas like non‑residential construction, waterworks and HVAC distribution.</li> <li>We’ll now examine how Ferguson’s higher guidance and dividend increase reshape the earlier investment narrative around growth, margins and capital returns.</li> </ul><p>We've found 13 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.</p><h2>Ferguson Enterprises Investment Narrative Recap</h2><p>To own Ferguson, you need to believe in its role as a leading distributor to non residential construction, waterworks and HVAC professionals, and its ability to defend margins despite pricing and competitive pressure. The latest quarter’s solid sales and margin gains, higher guidance and a larger dividend support the near term catalyst around improved profitability, while the key risk remains weakness in residential and HVAC demand, which the company still expects to weigh on results into early 2026.</p> <p>The most relevant update is Ferguson’s guidance for about 5% net sales growth and an adjusted operating margin of 9.4% to 9.6% for 2025, which directly addresses the earlier concern that commodity led deflation and softer residential markets could compress margins. This firmer outlook, combined with ongoing acquisitions like Moore Supply Company, matters because it speaks to whether growth in non residential and waterworks can offset pressure in more cyclical residential categories.</p> <p>Yet investors should also be aware that ongoing residential and HVAC softness could still challenge Ferguson’s ability to offset...</p> <p>Read the full narrative on Ferguson Enterprises (it's free!)</p><p>Ferguson Enterprises' narrative projects $36.5 billion revenue and $2.4 billion earnings by 2028. This requires 6.5% yearly revenue growth and about a $0.8 billion earnings increase from $1.6 billion today.</p><p>Uncover how Ferguson Enterprises' forecasts yield a $259.59 fair value, a 16% upside to its current price.</p><h2>Exploring Other Perspectives</h2><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/787036cd-d69e-47f1-9626-806bb2088675/chart/quote-price?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/787036cd-d69e-47f1-9626-806bb2088675/chart/quote-price"/><figcaption>FERG 1-Year Stock Price Chart</figcaption></figure> <p>Four Simply Wall St Community valuations put Ferguson’s fair value between US$224.90 and US$259.59, underlining how widely views can differ. Against that spread, the recent guidance upgrade and margin improvement sharpen the debate on whether non residential and waterworks strength can continue to counter residential and HVAC weakness over time.</p><p>Explore 4 other fair value estimates on Ferguson Enterprises - why the stock might be worth just $224.90!</p><h2>Build Your Own Ferguson Enterprises Narrative</h2><p>Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.</p><ul><li>A great starting point for your Ferguson Enterprises research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.</li><li>Our free Ferguson Enterprises research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Ferguson Enterprises' overall financial health at a glance.</li></ul><h2>No Opportunity In Ferguson Enterprises?</h2><p>These stocks are moving-our analysis flagged them today. Act fast before the price catches up:</p><ul><li>These 11 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.</li><li>The best AI stocks today may lie beyond giants like Nvidia and Microsoft. 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We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><p>Mobile Infrastructure for Defense and Disaster</p><p>The next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.</p><p>Get the investor briefing before the next round of contracts</p><p><span>Sponsored On Behalf of CiTech</span></p></div></div></div>

FERG

<p>Ferguson Enterprises reported strong Q1 2025 results, increased its dividend to $0.89, completed a $208.75 million share repurchase, and updated guidance to 5% net sales growth. The company is expanding through acquisitions and focusing on non-residential construction, waterworks, and HVAC distribution. Despite residential and HVAC demand challenges, Ferguson projects $36.5 billion revenue and $2.4 billion earnings by 2028, with a fair value estimate of $259.59, indicating a 16% upside. Investors should consider ongoing residential softness as a potential risk.</p>

Ferguson (FERG) Boosts Dividend and Buybacks: Prudent Capital Returns or Understated Growth Ambition?