On May 5, plumbing, PVF, HVAC, infrastructure and industrial supplies distributor Ferguson Enterprises reported its results for the 2026 first quarter, which ended March 31. Â
Amid what Ferguson CEO Kevin Murphy described as an uncertain and challenging market, the results were led by strong non-residential market revenue growth driven by large capital projects.
For the first quarter, Ferguson reported net sales of $7.5 billion up 3.6% year-over-year. The figure was driven by 2.8% organic revenue growth and 0.8% growth from acquisitions. Meanwhile, price inflation was in the mid-single digits, the company noted.
Ferguson’s 1Q26 U.S. sales results by customer group:
| Customer Group | % of U.S. Sales | 2026 YoY +/- | 2025 YoY +/- |
| Waterworks | 23% | +5% | +11% |
| Ferguson Home | 21% | -2% | Flat |
| Residential Trade Plumbing | 15% | -2% | -4% |
| HVAC | 11% | 1% | +5% |
| Commercial/Mechanical | 16% | +18% | +9% |
| Fire & Fabrication | 3% | -6% | -5% |
| Facilities Supply | 4% | +3% | -3% |
| Industrial | 7% | +10% | +1% |
| Total U.S. | 100% | +3.5% | +3.1% |
While net sales in the U.S. increase by 3.5%, with organic revenue growth of 2.9% and further 0.6% contribution from acquisitions, Ferguson officials said that 1Q U.S. residential end markets — representing about half of total U.S. business — remained challenged.
Residential revenue was down 1% in the quarter, meanwhile non-residential revenue was up 8% with on-going large capital project activity and “growth in open order volumes and bidding activity.”
1Q26 gross margin was 31.0% — up 30 basis points year-over-year. Operating profit was $612 million (8.2% margin), up 20.7% year-over-year, with adjusted operating profit of $647 million (8.7% margin) up 13.8%. Net income of $414 million topped the $345 million of a year earlier, and adjusted EBITDA of $711 million increased 9.2% year-over-year.
