Executive Summary
Ferguson plc delivered a solid QQ4 2024 performance with revenue of USD 7.946 billion and an EBITDA of USD 0.893 billion, translating to an EBIT margin of 10.2% and a net margin of 5.7%. The quarter showed meaningful QoQ improvement across revenue, gross profit, and operating income, driven by a resilient US/Canada plumbing and HVAC distribution footprint and ongoing execution in price realization and mix. Net income declined on a YoY basis by 22.8%, largely reflecting a higher tax burden and non-operating factors rather than a deterioration in operating performance, while EPS dipped 22.4% YoY but rose 1.37% QoQ to USD 2.23 (diluted USD 2.23). Cash generation remained robust, with operating cash flow of USD 0.366 billion and free cash flow of USD 0.257 billion, supporting a total cash balance of USD 0.625 billion at period end. The balance sheet remains heavily levered, with net debt of USD 4.946 billion and a debt-to-capitalization ratio near 0.50, underscoring a continued priority on deleveraging and capital allocation (including a material set of share buybacks and dividend payments). Investors should monitor leverage trajectory, working capital dynamics, and the cadence of store/branch network investments against cash flow generation as Ferguson navigates a continuing macro backdrop that includes construction activity cycles and housing market trends.
Key Performance Indicators
Key Insights
Revenue: USD 7.946B; YoY +1.38%, QoQ +8.73%; Gross Profit: USD 2.461B; Gross Margin 30.97%; EBITDA: USD 0.893B; EBITDA Margin 11.23%; Operating Income: USD 0.811B; Operating Margin 10.20%; Net Income: USD 0.451B; Net Margin 5.68%; EPS (Diluted): USD 2.23; YoY EPS: -22.38%, QoQ: +1.37%; Cash Flow from Operations: USD 0.366B; Free Cash Flow: USD 0.257B; Net Debt: USD 4.946B; Leverage (Debt to Capitalization): 0.496; Interest Coverage: 17.26x; Current Ratio: 1.804x; Quick Ratio: 1.001x; Inventory T...
Financial Highlights
Revenue: USD 7.946B; YoY +1.38%, QoQ +8.73%; Gross Profit: USD 2.461B; Gross Margin 30.97%; EBITDA: USD 0.893B; EBITDA Margin 11.23%; Operating Income: USD 0.811B; Operating Margin 10.20%; Net Income: USD 0.451B; Net Margin 5.68%; EPS (Diluted): USD 2.23; YoY EPS: -22.38%, QoQ: +1.37%; Cash Flow from Operations: USD 0.366B; Free Cash Flow: USD 0.257B; Net Debt: USD 4.946B; Leverage (Debt to Capitalization): 0.496; Interest Coverage: 17.26x; Current Ratio: 1.804x; Quick Ratio: 1.001x; Inventory Turns: 1.31x; Receivables Days: 40.8; CCC: 109.5 days; Capex: USD 109M; Dividend Payout: USD 319M; Share Buybacks: USD 213M; Acquisitions (net): USD -75M in Q3 and Q4 combined.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
7.95B |
1.38% |
8.73% |
| Gross Profit |
2.46B |
2.46% |
14.63% |
| Operating Income |
811.00M |
3.71% |
27.32% |
| Net Income |
451.00M |
-22.77% |
1.81% |
| EPS |
2.22 |
-22.38% |
1.37% |
Key Financial Ratios
operatingProfitMargin
10.2%
operatingCashFlowPerShare
$1.8
freeCashFlowPerShare
$1.27
dividendPayoutRatio
70.7%
Management Commentary
No earnings call transcript or management quotes were provided in the dataset. As a result, a thematic synthesis of management commentary or quotes by executives is not available. If you can provide the transcript or quotes, I will extract themes by strategy, operations, and market conditions with direct citations.
Not provided in dataset
— N/A
Not provided in dataset
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Forward Guidance
Management did not publish formal forward guidance in the supplied data. Nevertheless, the quarterly trajectory suggests solid cash generation and operating effectiveness despite a high leverage base. The key drivers of the outlook will likely include: (1) continued demand stability in Ferguson’s US/Canada residential and commercial plumbing, HVAC, and waterworks end-markets, (2) ongoing efficiency improvements and price optimization to protect margins amid input cost volatility, and (3) a prudent balance between capital investment (branch network and digital tools) and deleveraging. In the near term, investors should watch leverage normalization (net debt/EBITDA) and the cadence of capital returns (dividends and buybacks) as Ferguson funds growth initiatives without compromising credit metrics. Given the current net debt profile, a cautious deleveraging path coupled with steady free cash flow generation would be viewed positively by credit investors and equity holders alike.