Ferguson Enterprises Inc. /DE/ (FERG)

Ferguson is a value-added distributor serving water and air specialized professionals in the roughly $340 billion residential and non-residential North American construction market, and describes itself as the largest in that field. It provides expertise and a wide range of products and services for customers' complex projects. Ferguson Enterprises Inc. became the ultimate parent company in August 2024 after a corporate restructuring, following the Company's earlier shift away from European operations to North American markets. It is listed on the New York Stock Exchange and the London Stock Exchange under the symbol FERG.

The product range spans plumbing, heating, ventilation and air conditioning (HVAC), appliances, lighting, pipes, valves and fittings (PVF), and water and wastewater solutions. Ferguson sells more than 1 million unique products a year, including branded products and own brand products sold exclusively by the Company. Value-added services include virtual design, fabrication, valve actuation, pre-assembly, kitting, installation and project management, plus after-sales support such as warranty, credit, project-based billing, returns and maintenance, repair and operations support. The two reportable segments are geographic. The United States segment, mainly under the Ferguson brand, contributed 95% of net sales in fiscal 2025, 2024 and 2023. The Canada segment, mainly under the Wolseley brand, contributed 5%. It supplies plumbing, HVAC and refrigeration products to residential and commercial contractors, water and wastewater treatment products to residential, commercial and infrastructure contractors, and PVF solutions to industrial customers.

Customers are principally in North America. Residential and non-residential markets each account for about half of net sales. By management's estimate, repair, maintenance and improvement accounts for about two-thirds of net sales and new construction for about one-third. End markets include residential, commercial, civil/infrastructure and industrial. No single customer accounted for more than 1% of fiscal 2025 net sales. Products reach customers through inside and outside sales teams, sales centers, digital commerce, system-to-system capabilities, counter sales, showrooms, delivery, branch pick-up, locker locations and direct shipments. The business is not highly seasonal, though the fourth fiscal quarter, which begins in spring, usually has the highest sales volume.

Headquarters are at 751 Lakefront Commons, Newport News, Virginia. As of July 31, 2025, Ferguson operated 1,746 branches, 11 regional distribution centers, six market distribution centers, three import centers and about 5,900 fleet vehicles, with about 35,000 associates, roughly 32,000 in the United States and 3,000 in Canada. It buys from about 37,000 suppliers, none accounting for more than 5% of inventory purchases. About 95% of products sold in the United States come from U.S.-based suppliers, and about 90% of those sold in Canada from Canada-based suppliers. Commodity-based products, mainly plastic, copper and steel, can be up to about 15% of annual U.S. net sales. The markets are highly fragmented, with few large competitors and many small local and mid-size regional distributors. Acquisitions that bolt on to the branch network or add capabilities are a core part of the growth strategy.