Earnings release
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NEWS RELEASE Ferguson Reports Strong Calendar 2025 Results and Issues 2026 Guidance 2026-02-24 Full calendar year highlights Sales were $31.3 billion, an increase of 5.0%, with continued market share gains. Gross margin of 31.0% was 70 bps ahead of last year. Operating margin of 8.9%, up 40 bps on prior year (9.6%, up 50 bps on an adjusted basis). Diluted earnings per share of $10.16, up 24.2% ($10.58, up 13.4% on an adjusted basis). Strong cash generation with $2.2 billion in operating cash ow. Declared dividends of $3.38 per share. Invested $276 million in eight acquisitions, generating annualized revenue in excess of $300 million. Share repurchases of $0.9 billion during the year with an outstanding balance of approximately $0.6 billion remaining under the current share repurchase program at December 31, 2025. Balance sheet remains strong with net debt to adjusted EBITDA of 1.1x. NEWPORT NEWS, Va.--(BUSINESS WIRE)-- Ferguson Enterprises Inc. (NYSE: FERG; LSE: FERG). As previously announced, the Company changed its scal year from ending July 31 of each year to ending December 31 of each year. There was a ve-month transition period (August 1, 2025 to December 31, 2025) and these results are presented within the condensed consolidated nancial statements. The Company’s current scal year commenced 1
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on January 1, 2026. Full calendar year as well as calendar 2025 fourth quarter results are presented below. Kevin Murphy, Ferguson CEO, commented “Our associates delivered a strong year, continuing to provide essential water and air solutions for our customers. We are particularly pleased with double digit non-residential growth during the year and our continued performance against a challenging residential market. Our scale-advantaged business model and strong balance sheet enable us to invest in organic growth, consolidate our markets through acquisitions and return capital to shareholders. “While our markets remain mixed as we enter 2026, we expect another year of outperformance, strong operational execution and continued investment to expand our market leading capabilities and scale. We are con dent in our ability to capitalize on long-term growth drivers across both residential and non-residential markets as we provide essential water and air solutions for the complex project needs of the specialized professional.” Calendar 2026 Guidance Calendar 2026 Guidance January 1 - December 31, 2026 Net sales Low to mid-single digit growth Adjusted operating margin* 9.4% - 9.8% Interest expense ~$200 million Capital expenditures $350 - $400 million Adjusted e ective tax rate* ~26% * The Company does not reconcile forward-looking non-GAAP measures. See “Non-GAAP Reconciliations and Supplementary information”. Twelve months ended December 31,US$ (In millions, except pershare amounts)2025 2024 Change ReportedAdjusted(1) ReportedAdjusted(1) ReportedAdjusted Net sales 31,31631,31629,81829,818+5.0 %+5.0 %Gross margin 31.0 %31.0 %30.3 %30.3 %+70 bps+70 bpsOperating pro t 2,789 3,011 2,528 2,705 +10.3 %+11.3 %Operating margin 8.9 % 9.6 % 8.5 % 9.1 % +40 bps+50 bpsEarnings per share - diluted10.16 10.58 8.18 9.33 +24.2 %+13.4 %Adjusted EBITDA 3,243 2,905 +11.6 %Net debt(1) : Adjusted EBITDA 1.1x 1.2x Three months ended December 31,US$ (In millions, except pershare amounts)2025 2024 Change ReportedAdjusted(1) ReportedAdjusted(1) ReportedAdjusted Net sales 7,495 7,495 7,234 7,234 +3.6 %+3.6 %Gross margin 30.6 %30.6 %29.7 %29.7 %+90 bps+90 bpsOperating pro t 596 625 509 549 +17.1 %+13.8 %O i i 80% 83% 70% 76% 100b 70b 2
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Operating margin 8.0 % 8.3 % 7.0 % 7.6 %+100 bps+70 bpsEarnings per share - diluted1.99 2.10 1.78 1.88 +11.8 %+11.7 % Adjusted EBITDA 686 601 +14.1 % (1) The Company uses certain non-GAAP measures, which are not de ned or speci ed under U.S. GAAP. See the section titled “Non-GAAPReconciliations and Supplementary Information.” Summary of nancial results Full calendar year Net sales of $31.3 billion were 5.0% above last year driven by organic revenue growth of 4.5% and acquisition growth of 1.0%, partially o set by 0.4% from one fewer sales day and 0.1% from the combined adverse impact of foreign exchange rates and a divestment in Canada. Price in ation was low single digits. Gross margin of 31.0% was 70 basis points ahead of last year driven by our associates’ strong execution and the timing and extent of supplier price increases. Reported operating pro t was $2.8 billion (8.9% operating margin), 10.3% higher than last year. Adjusted operating pro t of $3.0 billion (9.6% adjusted operating margin) was 11.3% above last year. Reported diluted earnings per share was $10.16 (CY2024: $8.18), an increase of 24.2%, while adjusted diluted earnings per share of $10.58 increased 13.4% due to adjusted operating pro t growth and the impact of share repurchases. During the year we acquired eight businesses which in aggregate had annualized revenue in excess of $300 million. Calendar fourth quarter Net sales of $7.5 billion were 3.6% ahead of last year driven by organic revenue growth of 3.0% and acquisition growth of 0.9%, partially o set by 0.3% from the combined adverse impact of foreign exchange rates and a divestment in Canada. Price in ation was low to mid-single digits. In the US, residential end markets, representing approximately half of revenue, remained weak. New residential housing starts and permit activity remained down and repair, maintenance and improvement (“RMI”) work has also remained soft. Overall, residential revenue was down 2% in the fourth quarter. Non-residential end markets, representing approximately half of US revenue, performed better than residential. Our scale, expertise, multi-customer group approach and value added solutions drove continued share gains with non-residential revenue up 10% during the quarter. Growth continued to be underpinned by both waterworks and commercial / mechanical, including large capital project activity. Bidding and shipment activity on large capital projects remained solid. 3
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Gross margin was 30.6%, an increase of 90 basis points over last year, driven by our associates’ disciplined execution. Operating expenses continued to be diligently managed while we continued to invest in core capabilities for future growth. Reported operating pro t of $596 million (8.0% operating margin) was 17.1% ahead of last year. Adjusted operating pro t of $625 million (8.3% adjusted operating margin) was 13.8% ahead of last year. Reported diluted earnings per share was $1.99 (Q4 CY 2024: $1.78), an increase of 11.8%, while adjusted diluted earnings per share of $2.10 increased 11.7%, driven principally by operating pro t growth. Segment overview Twelve months endedDecember 31, US$ (In millions) 2025 2024 Change Net sales: USA 29,807 28,349 5.1 % Canada 1,509 1,469 2.7 % Total net sales 31,316 29,818 5.0 % Adjusted operating pro t: USA 3,024 2,697 12.1 %Canada 54 60 (10.0) % Central and other costs (67) (52) Total adjusted operating pro t 3,011 2,705 11.3 % Financial position Net debt to adjusted EBITDA at December 31, 2025 was 1.1x and during the year we invested $0.4 billion in capital expenditures, invested $0.3 billion in eight acquisitions, paid $0.7 billion of dividends, and repurchased 4.5 million of our outstanding shares equating to $0.9 billion. We have a remaining outstanding balance of $0.6 billion under the current share repurchase program at December 31, 2025. We have declared a quarterly dividend of $0.89. The dividend will be paid on April 30, 2026 to stockholders of record as of March 6, 2026. Update on market opportunities and strategy Later this morning, we look forward to providing an updated view of how we are uniquely positioned to provide essential water and air solutions for the complex needs of the specialized professional. We will discuss how our scale and capabilities combined with multi-year market opportunities in large capital projects, water infrastructure investment, climate & comfort and aging & underbuilt housing will allow us to continue outperforming the market 4
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and deliver shareholder value over the longer term. Investor relations changes The Board would like to congratulate Brian Lantz, Vice President Investor Relations and Communications, on his decision to retire e ective May 1, 2026, and thank him for his signi cant contribution to Ferguson during the last ve years, most notably establishing a strong investor relations presence in the US after helping to transition our primary listing from the London Stock Exchange to the New York Stock Exchange. We are pleased to announce that Pete Kennedy has been promoted to Vice President Investor Relations and Christine Dwyer has been promoted to Vice President Communications and Public Relations. Pete has been with Ferguson for over ten years, initially in nance and the last seven years within investor relations, working closely with Brian. Christine brings over 25 years of experience in communications, including the last 15 at Ferguson. Investor conference call and webcast A call with Kevin Murphy, CEO and Bill Brundage, CFO will commence at 8:30 a.m. ET (1:30 p.m. GMT) today. The call will be recorded and available on our website after the event at corporate.ferguson.com. Dial in numberUS: +1 646 664 1960UK: +44 (0) 20 3936 2999 Ask for the Ferguson call quoting 192073. To access the call via your laptop, tablet or mobile device please go to corporate.ferguson.com. If you have technical di culties, please click the “Listen by Phone” button on the webcast player and dial the number provided. About Ferguson Ferguson (NYSE: FERG; LSE: FERG) is North America’s largest value-added distributor of essential water and air solutions, serving specialized professionals in our $340B residential and non-residential construction markets. We help make our customers’ complex projects simple, successful and sustainable by providing expertise and a wide range of products and services from plumbing, HVAC, appliances, and lighting to PVF, water and wastewater solutions, and more. Headquartered in Newport News, Va., Ferguson has sales of $31.3 billion (CY’25) and approximately 35,000 associates in over 1,700 locations. For more information, please visit corporate.ferguson.com. 5
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Financial calendar Q1 Results for period ending March 31, 2026May 5, 2026 with call from 8:30 a.m. ET Cautionary note on forward-looking statements Certain information included in this announcement is forward-looking, including within the meaning of the Private Securities Litigation Reform Act of 1995, and involves risks, assumptions and uncertainties that could cause actual results to di er materially from those expressed or implied by forward-looking statements. Forward-looking statements cover all matters which are not historical facts and include, without limitation, statements or guidance regarding or relating to our future nancial position, results of operations and growth, plans and objectives for the future including our capabilities and priorities, risks associated with changes in global and regional economic, market and political conditions, ability to manage supply chain challenges, ability to manage the impact of product price uctuations, our nancial condition and liquidity, legal or regulatory changes and other statements concerning the success of our business and strategies. Forward-looking statements can be identi ed by the use of forward-looking terminology, including terms such as “believes,” “estimates,” “anticipates,” “expects,” “forecasts,” “guidance,” “intends,” “continues,” “plans,” “projects,” “goal,” “target,” “aim,” “may,” “will,” “would,” “could” or “should” or, in each case, their negative or other variations or comparable terminology and other similar references to future periods. Forward-looking statements speak only as of the date on which they are made. They are not assurances of future performance and are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Therefore, you should not place undue reliance on any of these forward-looking statements. Although we believe that the forward-looking statements contained in this announcement are based on reasonable assumptions, you should be aware that many factors could cause actual results to di er materially from those contained in such forward-looking statements, including but not limited to: weakness in the economy, market trends, uncertainty and other conditions in the markets in which we operate and the macroeconomic impact of factors beyond our control (including, among others, in ation/de ation, recession, labor and wage pressures, trade restrictions such as tari s, sanctions and retaliatory countermeasures, interest rates, and geopolitical conditions); failure to rapidly identify or e ectively respond to direct and/or end customers’ wants, expectations or trends, including costs and potential problems associated with new or upgraded information technology systems or our ability to timely deploy new omni-channel capabilities; decreased demand for our products as a result of operating in highly competitive industries and the impact of declines in the residential and non-residential markets and our ability to e ectively manage inventory as a result; changes in competition, including as a result of market consolidation, new entrants, vertical integration or competitors responding more quickly to emerging technologies (such as generative or agentic arti cial intelligence (“AI”)); failure of a key information technology system or process 6
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as well as payment-related risks, including exposure to fraud or theft; privacy and protection of sensitive data failures, including failures due to data corruption, cybersecurity incidents, network security breaches or the use of AI; ine ectiveness of or disruption in our domestic or international supply chain or our ful llment network, including delays in inventory availability at our distribution facilities and branches, increased delivery costs or lack of availability due to loss of key suppliers; failure to e ectively manage and protect our facilities and inventory or to prevent personal injury to customers, suppliers or associates, including as a result of workplace violence; unsuccessful execution of our operational strategies, including the failure to quickly adapt our strategy to emerging technologies; failure to attract, retain and motivate key associates; exposure of associates, contractors, customers, suppliers and other individuals to health and safety risks and eet incidents; risks associated with acquisitions, partnerships, joint ventures and other business combinations, dispositions or strategic transactions; risks associated with sales of private label products, including regulatory, product liability and reputational risks and the adverse impact such sales may have on supplier relationships and rebates; the failure to achieve and maintain a high level of product and service quality or comply with responsible sourcing standards; inability to renew leases on favorable terms or at all, as well as any remaining obligations under a lease when we close a facility; changes in, interpretations of, or compliance with tax laws and accounting standards; our access to capital, indebtedness and changes in our credit ratings and outlook; uctuations in product prices/costs (e.g., including as a result of the use of commodity-priced materials, in ation/de ation, trade restrictions and/or failure to qualify for or maintain supplier rebates) and foreign currency; funding risks related to our de ned bene t pension plans; legal proceedings in the ordinary course of our business as well as any failure to comply with domestic and foreign laws, regulations and standards, as those laws, regulations and standards or interpretations and enforcement thereof may change; the occurrence of unforeseen developments such as litigation, investigations, governmental proceedings or enforcement actions; our failure to comply with the obligations associated with being a public company listed on the New York Stock Exchange and London Stock Exchange and the costs associated therewith; the costs and risk exposure relating to sustainability matters and disclosures, including regulatory or legal requirements and disparate stakeholder expectations; and other risks and uncertainties set forth under the heading “Risk Factors” in our Annual Report on Form 10-K for the scal year ended July 31, 2025 led with the Securities and Exchange Commission (“SEC”) on September 26, 2025 and in other lings we make with the SEC in the future. Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Other than in accordance with our legal or regulatory obligations, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Important note regarding results reported in this announcement All historical calendar quarter and calendar year results, as well as the historical ve month results, contained in this announcement have not been audited and have been derived from the books and records of the Company. As 7
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such, these results have not been subject to external audit or review procedures, and may be subject to adjustment. We expect to le a Transition Report on Form 10-KT on February 27, 2026, which will include audited results for the transition period from August 1, 2025 to December 31, 2025, and for the scal years ended July 31, 2025 and 2024. Investors are encouraged to review the information presented in this announcement in conjunction with our Transition Report on Form 10-KT, when available. Non-GAAP Reconciliations and Supplementary Information (unaudited) Non-GAAP items This announcement contains certain nancial information that is not presented in conformity with U.S. GAAP. These non-GAAP nancial measures include adjusted operating pro t, adjusted operating margin, adjusted net income, adjusted earnings per share - diluted, adjusted EBITDA, adjusted e ective tax rate, net debt and net debt to adjusted EBITDA ratio. The Company believes that these non-GAAP nancial measures provide users of the Company’s nancial information with additional meaningful information to assist in understanding nancial results and assessing the Company’s performance from period to period. Management believes these measures are important indicators of operations because they exclude items that may not be indicative of our core operating results and provide a better baseline for analyzing trends in our underlying businesses, and they are consistent with how business performance is planned, reported and assessed internally by management and the Board. Such non-GAAP adjustments include amortization of acquired intangible assets, discrete tax items, and any other items that are non-recurring. Non-recurring items may include various restructuring charges, gains or losses on the disposals of businesses which by their nature do not re ect primary operations, as well as certain other items deemed non-recurring in nature and/or that are not a result of the Company’s primary operations. Because non- GAAP nancial measures are not standardized, it may not be possible to compare these nancial measures with other companies' non-GAAP nancial measures having the same or similar names. These non-GAAP nancial measures should not be considered in isolation or as a substitute for results reported under U.S. GAAP. These non- GAAP nancial measures re ect an additional way of viewing aspects of operations that, when viewed with U.S. GAAP results, provide a more complete understanding of the business. The Company strongly encourages investors and shareholders to review the Company’s nancial statements and publicly led reports in their entirety and not to rely on any single nancial measure. The Company does not provide a reconciliation of forward-looking non-GAAP nancial measures to the most directly comparable U.S. GAAP nancial measures on a forward-looking basis because it is unable to predict with reasonable certainty or without unreasonable e ort non-recurring items, such as those described above, that may arise in the future. The variability of these items is unpredictable and may have a signi cant impact. 8
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Reconciliation of Net Income to Adjusted Operating Pro t and Adjusted EBITDAThree months endedTwelve months endedDecember 31,December 31, (In millions) 2025 202420252024 Net income $ 389$ 356$ 2,006$ 1,651Provision for income taxes 145 109 578 695Interest expense, net 48 48 190 179 Other expense, net 14 (4) 15 3 Operating pro t 596 509 2,789 2,528Restructuring activities(1) (5) — 74 26 Amortization of acquired intangibles34 40 148 151 Adjusted Operating Pro t625 549 3,011 2,705Depreciation and impairment of PP&E55 44 204 170 Amortization and impairment of non-acquired intangibles6 8 28 30 Adjusted EBITDA $ 686$ 601$ 3,243$ 2,905 (1)For the three and twelve months ended December 31, 2025, restructuring expenses primarily related to the Company’s implementation oftargeted actions to streamline operations, enhancing speed and e ciency to better serve customers and drive further pro table growth, includinga gain on the sale of a closed distribution center in November 2025. For the twelve months ended December 31, 2024, restructuring expensesrelated to incremental costs in connection with establishing a new corporate structure to domicile our parent company in the United States as ofAugust 1, 2024, and related transition activities thereafter. Net Debt : Adjusted EBITDA Reconciliation To assess the appropriateness of its capital structure, the Company’s principal measure of nancial leverage is net debt to adjusted EBITDA. The Company aims to operate with investment grade credit metrics and keep this ratio within one to two times. Net debt Net debt comprises bank overdrafts, bank and other loans and derivative nancial instruments, excluding lease liabilities, less cash and cash equivalents. Long-term debt is presented net of debt issuance costs. December 31, (In millions) 2025 2024 Long-term debt $ 3,978$ 3,798Short-term debt 148 400Bank overdrafts(1) — 124Derivative liabilities 2 6 Cash and cash equivalents (557) (722) Net debt $ 3,571$ 3,606 Adjusted EBITDA $ 3,243$ 2,905 Net Debt: Adjusted EBITDA 1.1x 1.2x 9
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(1)Bank overdrafts are included in other current liabilities in the Company’s Consolidated Balance Sheet. Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS - Diluted Three months endedDecember 31, (In millions, except per share amounts)2025 2024 per share(1) per share(1) Net income $ 389$ 1.99$ 356$ 1.78Restructuring activities(2) (5) (0.03) — —Amortization of acquired intangibles34 0.18 40 0.20Discrete tax adjustments(3) (2) (0.01) (10) (0.05) Tax impact on non-GAAP adjustments(4) (5) (0.03) (10) (0.05) Adjusted net income $ 411$ 2.10$ 376$ 1.88 Diluted weighted average shares outstanding195.9 200.2 Twelve months endedDecember 31, (In millions, except per share amounts)2025 2024 per share(1) per share(1) Net income $ 2,006$ 10.16$ 1,651$ 8.18Restructuring activities(2) 74 0.38 26 0.13Amortization of acquired intangibles148 0.75 151 0.75Discrete tax adjustments(3) (87) (0.44) 94 0.46 Tax impact on non-GAAP adjustments(4) (53) (0.27) (39) (0.19) Adjusted net income $ 2,088$ 10.58$ 1,883$ 9.33 Diluted weighted average shares outstanding197.4 201.9 (1)Per share on a dilutive basis. (2)For the three and twelve months ended December 31, 2025, restructuring expenses primarily related to the Company’s implementation oftargeted actions to streamline operations, enhancing speed and e ciency to better serve customers and drive further pro table growth, includinga gain on the sale of a closed distribution center in November 2025. For the twelve months ended December 31, 2024, restructuring expensesrelated to incremental costs in connection with establishing a new corporate structure to domicile our parent company in the United States as ofAugust 1, 2024, and related transition activities thereafter.(3)For the three months and twelve months ended December 31, 2025 and the three months ended December 31, 2024, discrete tax adjustmentsgenerally included the release of uncertain tax positions following the lapse of statute of limitations, adjustments in connection with amendedreturns and the tax treatment of certain compensation items, none of which were individually material. For the twelve months ended December31, 2024, discrete tax adjustments primarily related to non-recurring, non-cash deferred tax charges of $137 million, resulting from theelimination of certain pre-existing U.K. tax attributes as part of the establishment of our parent company’s domicile in the United States as ofAugust 1, 2024. This charge was partially o set by other discrete tax adjustments as noted for the three and twelve months ended December 31,2025 and three months ended December 31, 2024.(4)For the three and twelve months ended December 31, 2025, the tax impact on non-GAAP adjustments primarily related to restructuring activitiesand the amortization of acquired intangibles. For the three and twelve months ended December 31, 2024, the tax impact on non-GAAPadjustments primarily related to the amortization of acquired intangibles. 10
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Ferguson Enterprises Inc.Condensed Consolidated Statements of Earnings(unaudited)Three months endedTwelve months endedDecember 31,December 31, (In millions, except per share amounts)2025 2024 2025 2024 Net sales $7,495 $7,234$31,316$29,818 Cost of sales (5,199) (5,086) (21,608) (20,774) Gross pro t 2,296 2,148 9,708 9,044Selling, general and administrative expenses(1,610) (1,547) (6,465) (6,139)Restructuring activities 5 — (74) (26) Depreciation and amortization (95) (92) (380) (351) Operating pro t 596 509 2,789 2,528Interest expense, net (48) (48) (190) (179) Other (expense) income, net (14) 4 (15) (3) Income before income taxes 534 465 2,584 2,346 Provision for income taxes (145) (109) (578) (695) Net income $389 $356 $2,006 $1,651 Earnings per share - Basic $1.99 $1.78 $10.18 $8.19Earnings per share - Diluted $1.99 $1.78 $10.16 $8.18Weighted average number of shares outstanding:Basic 195.7 200.0 197.1 201.5Diluted 195.9 200.2 197.4 201.9 Ferguson Enterprises Inc.Condensed Consolidated Statements of Earnings(unaudited) Five months endedDecember 31, (In millions, except per share amounts)2025 2024 Net sales 12,833 $12,279 Cost of sales (8,903) (8,622) Gross pro t 3,930 3,657Selling, general and administrative expenses(2,677) (2,587)Restructuring activities 3 (3) Depreciation and amortization (157) (151) Operating pro t 1,099 916Interest expense, net (79) (79) Other income (expense), net (17) 5 Income before income taxes 1,003 842 Provision for income taxes (217) (206) Net income 786 $636 Earnings per share - Basic $4.01 $3.17Earnings per share - Diluted $4.01 $3.17Weighted average shares outstanding:Basic 195.9 200.4Diluted 196.2 200.7 Ferguson Enterprises Inc.Condensed Consolidated Balance Sheets(unaudited)December 31,July 31, (In millions) 2025 2025 Assets Cash and cash equivalents $557 $674Accounts receivable, net 3,312 3,964Inventories 4,588 4,492Prepaid and other current assets 1,031 94548 71 11
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Assets held for sale 48 71 Total current assets 9,536 10,146Property, plant and equipment, net 1,911 1,846Operating lease right-of-use assets 1,832 1,763Deferred income taxes, net 165 225Goodwill 2,470 2,464 Other non-current assets 1,238 1,285 Total assets $17,152 $17,729 Liabilities and stockholders’ equity Accounts payable $3,117 $3,577 Other current liabilities 2,008 2,451 Total current liabilities 5,125 6,028Long-term debt 3,978 3,752Long-term portion of operating lease liabilities1,436 1,367 Other long-term liabilities 756 750 Total liabilities 11,295 11,897 Total stockholders' equity 5,857 5,832 Total liabilities and stockholders' equity$17,152 $17,729 Ferguson Enterprises Inc.Condensed Consolidated Statements of Cash Flows(unaudited) (In millions) Twelve months endedDecember 31, 2025 2024 Cash ows from operating activities: Net income $2,006 $1,651Depreciation and amortization 380 351Share-based compensation 88 36Changes in deferred income taxes 44 128Changes in inventories (179) (241)Changes in receivables and other assets (210) (41)Changes in accounts payable and other liabilities95 176Changes in income taxes payable (41) 2Other operating activities (2) 9 Net cash provided by operating activities2,181 2,071 Cash ows from investing activities: Purchase of businesses acquired, net of cash acquired(276) (297)Capital expenditures (354) (328) Other investing activities 85 10 Net cash used in investing activities(545) (615) Cash ows from nancing activities: Purchase of treasury shares (902) (893)Proceeds from sale of treasury shares — 17Net change in debt and bank overdrafts (202) (717)Cash dividends (656) (637) Other nancing activities (88) (69) Net cash used in nancing activities(1,848) (2,299) Change in cash, cash equivalents and restricted cash(212) (843)E ects of exchange rate changes 20 (27) Cash, cash equivalents and restricted cash, beginning of period773 1,643 Cash, cash equivalents and restricted cash, end of period$581 $773 Ferguson Enterprises Inc.Condensed Consolidated Statements of Cash Flows(unaudited)Five monthsended Twelve months endedD b31 Jl31 12
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(In millions) December 31,July 31, 2025 2025 2024 Cash ows from operating activities: Net income $786 $1,856 $1,735Depreciation and amortization 157 373 335Share-based compensation 70 28 49Changes in inventories (87) (273) (252)Changes in receivables and other assets553 (321) (98)Changes in accounts payable and other liabilities(706) 278 11Other operating activities 86 (33) 93 Net cash provided by operating activities859 1,908 1,873 Cash ows from investing activities: Purchase of businesses acquired, net of cash acquired(21) (301) (260)Capital expenditures (185) (305) (372) Other investing activities 42 63 31 Net cash used in investing activities(164) (543) (601) Cash ows from nancing activities: Purchase of treasury shares (407) (948) (634)Proceeds from sale of treasury shares— — 17Net change in debt and bank overdrafts(33) 225 129Cash dividends (326) (489) (784) Other nancing activities (57) (74) (41) Net cash used in nancing activities(823) (1,286) (1,313) Change in cash, cash equivalents and restricted cash(128) 79 (41)E ects of exchange rate changes 2 3 (3) Cash, cash equivalents and restricted cash, beginning of period707 625 669 Cash, cash equivalents and restricted cash, end of period$581 $707 $625 For further information please contact Investor relations Brian Lantz, Vice President IR and Communications Mobile: +1 224 285 2410 Pete Kennedy, Vice President Investor Relations Mobile: +1 757 603 0111 Media inquiries Christine Dwyer, Vice President Communications and PR Mobile: +1 757 469 5813 Source: Ferguson Enterprises Inc. 13