Ferguson Enterprises Q2 profit hits $666M, lifts FY26 outlook

Ferguson Enterprises reported a strong second quarter, with net income rising to $666 million from $634 million a year earlier. The plumbing and heating supplier also lifted its full-year sales outlook, saying its performance so far justifies the upgrade despite broader economic uncertainty. Earnings per share climbed to $3.43 from $3.21, while adjusted EBITDA grew to $994 million and operating profit reached $893 million, all ahead of 2023’s figures. Net sales jumped 5% to $8.75 billion from $8.36 billion, and the company declared a quarterly dividend of $0.89 per share, payable in October.

The raised guidance for 2026 points to mid-single-digit sales growth, up from the previous low- to mid-single-digit forecast. Analysts say the update signals confidence that demand for pipes, fittings and heating equipment will stay resilient even as some contractors pull back on spending. Ferguson’s business spans residential and commercial projects, giving it broad exposure to new construction, renovations and infrastructure upgrades. The company’s ability to push through price increases and manage costs appears to be working, keeping margins healthy.

Investors reacted positively, pushing the stock up 2.25% in pre-market trading to $262.30. The dividend announcement adds to the appeal, offering a 1.3% yield based on the current share price. Analysts note that Ferguson’s scale—it operates hundreds of branches across North America—helps it absorb regional slowdowns while still posting gains. Housing starts remain volatile, but remodeling activity and government spending on water and energy systems continue to drive steady demand for the company’s products.

The raised outlook matters because it suggests Ferguson can buck the broader industrial slowdown seen in some sectors. If inflation cools further and interest rates fall, the company could see even stronger order flows. Management’s willingness to lift guidance also signals discipline in how it allocates capital, balancing dividends, growth investments and debt management. For now, Ferguson is outperforming many peers, and Wall Street is taking notice.