Ferguson Stock Soars on HVAC Equipment Maker's Strong Results, Lifted Outlook

• Ferguson Enterprises exceeded profit and sales estimates as its efforts to streamline its business boosted performance.

• The HVAC equipment provider posted gains in gross margin and adjusted operating margin.

• Ferguson Enterprises said because of the strong results, it was raising its full-year guidance.

Ferguson Enterprises (FERG) shares took off Tuesday when the supplier of HVAC equipment posted better-than-expected results and boosted its guidance as its effort to improve efficiencies paid off.

The company reported fiscal 2025 third-quarter adjusted earnings per share of $2.50 on revenue that rose 4% year-over-year to $7.62 billion. Analysts surveyed by Visible Alpha expected $2.05 and $7.41 billion, respectively.

Gross margin increased 50 basis points (bps) to 31.0%, and adjusted operating margin grew 20 bps to 9.4%. CEO Kevin Murphy credited those advances to “strong volume growth, gross margin actions, moderating deflation and the early benefits of streamlining our business.”

Murphy said that even though Ferguson is facing “a dynamic and uncertain environment,” because of the Q3 performance the company was raising its full-year sales outlook to a low- to mid-single-digit percentage growth from a low-single-digit percentage gain, and adjusted operating margin to 8.5% to 9.0% from 8.3% to 8.8%.

Ferguson Enterprises shares, which entered the day up less than 4% this year, soared 13% soon after the opening bell.

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