PVF, plumbing, HVAC, infrastructure and industrial supplies distributor Ferguson reported its 2024 fourth quarter and full year results that ended July 31, showing a modest increase in the final quarter and a yearly decline.

4Q

The company posted total 4Q sales of $7.9 billion, up 1.4% year-over-year. Organic revenue fell 0.2%, offset by acquisition growth of 1.7%.

Ferguson said the weakness in certain commodity-related categories persisted in the quarter, driving modest overall price deflation of about 2%. Meanwhile, organic volumes were up about 2%.

The company’s 4Q gross margin of 31% was up 40 basis points (bps) year-over-year. Operating profit of $811 million on a 10.2% margin (10.8% adjusted) topped the $782 million and 10% operating margin (10.4% adjusted) of a year earlier. 4Q adjusted EBITDA of $906 million improved 5.6% year-over-year.

“The year finished in line with our expectations,” Ferguson CEO Kevin Murphy said in the company’s financial release. “Despite market headwinds and deflation during the year, we continued to outperform our markets, returned to volume growth, expanded gross margins and delivered solid operating margin performance.”

U.S.

In the U.S.— where Ferguson is now officially headquartered — sales were up 1.3%. Organic revenue was down 0.2%, offset by 1.5% from acquisitions.

Ferguson is Now Officially Headquartered in the U.S. (August 2024)

Ferguson completed four acquisitions during the quarter — Southwest Geo-Solutions (Austin, TX), United Water Works (Santa Ana, CA), Gerster Equipment (Buffalo, NY) and GAR Engineering (Concord, NC).

Ferguson Adds Distributors in NY, CA (August 2024)

Full Year

For its full fiscal 2024, Ferguson posted total sales of $29.6 billion, down 0.3% vs. 2023. Organic revenue fell 2.4%, while an additional day contributed to 0.4% growth.

The company’s full year gross margin of 30.5% was up 10 bps year-over-year. Operating profit of $2.7 billion on an 8.9% margin (9.5% adjusted) was 3.2% lower than the year prior.

2025 Outlook

In releasing its 2025 fiscal guidance, Ferguson said it expects low single digit growth for sales and adjusted operating margin between 9.0% and 9.5%.

“Our fiscal 2025 guidance reflects modest full year growth with continued market outperformance,” Murphy added. “While we anticipate an ongoing challenging near term market environment, we will continue to invest in scale and capabilities to take advantage of multi-year structural tailwinds such as underbuilt and aging U.S. housing, non-residential large capital projects and our opportunity with the dual-trade plumbing and HVAC contractor.”

Ferguson was No. 1 on MDM’s Top Distributor’s List for Plumbing, No. 2 for HVACR, No 2. For Industrial PVF, No. 3 for Industrial Supplies, No. 3 for Building Materials/Construction.