Ferguson Enterprises Inc. (NYSE: FERG; LSE: FERG) announced its intention to pay a dividend of $0.83 per share. The dividend will be paid on May 6, 2025, to stockholders of record as of the close of business on March 21, 2025.

Ferguson Enterprises Enters New $1.5 Billion Revolving Credit Facility

Newport News, VA – April 2, 2025 – Ferguson Enterprises Inc. (NYSE/LSE: FERG) today announced that it has entered into a new unsecured $1.5 billion revolving credit agreement scheduled to mature on April 2, 2030. The agreement includes an accordion feature that allows Ferguson to increase the facility by up to an additional $500 million, subject to lender commitments and other conditions.

The agreement was signed with JPMorgan Chase Bank, N.A. as administrative agent and includes Ferguson UK Holdings Limited as guarantor. The facility provides flexible borrowing options in USD or CAD, with interest rates based on Ferguson’s credit rating and benchmark rates (Base Rate, Term SOFR, or Adjusted Term CORRA), plus applicable margins.

Ferguson will pay a commitment fee ranging from 0.07% to 0.15% on unused portions of the facility, and must maintain a maximum net leverage ratio of 3.5x, with a temporary increase to 4.0x following certain material acquisitions.

Simultaneously, the company terminated its previous $1.35 billion multicurrency revolving facility, which had been in place since March 2020 and amended in October 2022. No amounts were outstanding under the prior facility at the time of termination.

The new agreement supports Ferguson’s long-term financial flexibility and commitment to disciplined capital management.

Ferguson Enterprises reported its second-quarter results, showing continued volume growth in a challenging market environment. Sales reached $6.9 billion, a 3.0% increase driven by market outperformance. The company's sales volume grew by 5%, offset by a 2% decline due to deflationary pressures. Gross margin was 29.7%, down 70 basis points from the prior year. Operating margin stood at 6.0% (6.5% on an adjusted basis). Diluted earnings per share were $1.38 ($1.52 on an adjusted basis).

Despite market headwinds, Ferguson reaffirmed its full-year revenue guidance, expecting low single-digit growth. However, the company revised its expected full-year adjusted operating margin down to a range of 8.3% to 8.8%. Capital expenditure guidance was also reduced to $325-$375 million from the previous $400-$450 million.

The company continues to manage costs carefully while making strategic investments to improve efficiency. Ferguson completed one acquisition during the quarter and signed an agreement to acquire a leading commercial/mechanical distributor in the Northeast. The share repurchase program was expanded by an additional $1 billion, with $252 million in repurchases completed during the quarter. The quarterly dividend was increased by 5% to $0.83 per share.

In the U.S., net sales rose 3.0%, with residential markets remaining steady and non-residential markets showing stronger resilience, particularly in large capital projects and infrastructure. Adjusted operating profit in the U.S. was $455 million, down 13.3% year-over-year. In Canada, net sales grew 3.2%, with adjusted operating profit increasing to $11 million.

Ferguson maintains a strong financial position, with net debt to adjusted EBITDA at 1.2x. The company remains confident in medium-term market conditions and continues to focus on balancing strategic investments with cost management.