Ferguson Expects Flat 2024 Sales, Details Acquisitions - Modern Distribution Management

Log In

Ferguson Expects Flat 2024 Sales, Details Acquisitions

The company added $780 million in combined revenue from acquisitions during its fiscal 2023, which ended July 31. Find a recap of the distribution giant's financials.
Los Angeles, California, USA - 5 March 2019: Ferguson website homepage. Ferguson logo visible on screen, Illustrative Editorial

Plumbing, HVAC, PVF and industrial supplies distribution giant Ferguson reported its 2023 fourth-quarter and full-year financials on Sept. 25, which revealed that the company is expecting flat revenue in the year ahead after netting nearly $30 billion this past year.

The performance report also detailed the company’s substantial 2023 expansion via acquisitions.

Ferguson ranked No. 3 on MDM’s 2023 Top Industrial Distributors List, and charted No. 1 for Plumbing, No. 2 for HVACR, No. 2 for Industrial PVF, No. 7 for Building Materials/Construction, and No. 8 for MRO.

Fourth Quarter

Ferguson reported 4Q23 total sales of $7.84 billion, down 1.7% year-over-year, with organic revenue down 5.3%, partially offset by 2.2% acquisition growth and a 1.4% impact from an additional selling day. The company said the decline in net sales was mainly driven by declines in residential, partially offset by growth in non-residential. Price inflation stepped down from approximately 5% in 3Q23 to approximately 1% in 4Q23.

  • Gross margin of 30.6% ticked up 10 basis points year-over-year.
  • Operating profit of $782 million dipped 3.9% year-over-year, while operating margin of 10.0% (10.4% adjusted) dipped 20 basis points (-30 adjusted).
  • Adjusted EBITDA of $858 million declined 4.2% year-over-year.
  • Net profit of $584 million was nearly identical to the $582 million a year earlier.
  • In the U.S., sales of $7.43 billion declined 1.5% year-over-year, while adjusted operating profit of $804 million fell 3.0%.
  • Here is how Ferguson’s U.S. 4Q sales growth fared by customer group.
    • Residential Trade Plumbing: -11% (+21% in 4Q22)
    • HVAC: +4% (+18% in 4Q22)
    • Residential Building & Remodel: +2% (+21% in 4Q22)
    • Waterworks: -1% (+36% in 4Q22)
    • Commercial/Mechanical: +6% (+27% in 4Q22)
    • Other (Fire Fabrication, Facilities Supply, Industrial): +6% (+27% in 4Q22)
  • In Canada, sales of $410 million declined 5.1% year-over-year, while adjusted operating profit of $22 million fell 37.1% year-over-year
Full Year

For its calendar 2023, which spanned Aug. 1, 2022 through July 31 of this year, Ferguson reported net sales of $29.73 billion — up 4.1% vs. 2022. Organic revenue was up 1.5% vs. 2022, while acquisitions contributed 2.5% growth. Average inflation during the year was approximately 8%.

  • Gross margin of 30.4% dipped 30 basis points vs. 2022.
  • Operating profit of $2.66 billion decreased 5.7% vs. 2022, while operating margin of 8.9% (9.8% adjusted) fell 100 basis points (-50 adjusted).
  • Adjusted EBITDA of $3.11 billion decreased 1.5% vs. 2022.
  • Net profit of $1.89 billion trailed 2022’s $2.12 billion.
  • In the U.S., sales of $28.29 billion increased 4.5% vs. 2022, while adjusted operating profit of $2.89 billion was flat.
  • In Canada, sales of $1.44 billion decreased 3.7% vs. 2022, while adjusted operating profit of $76 million fell 32.1%.


Ferguson detailed that, during its 4Q23, the company completed three acquisitions that netted the company approximately $450 million in combined revenue. Those three deals were announced on Aug. 2 in the form of plumbing distributor Bruce Supply Corp. (Brooklyn, New York); waterworks distributor The Kennedy Companies (Mount Laurel, New Jersey); and HVAC distributor S. G. Torrice (Wilmington, Massachusetts).

Overall, Ferguson said it completed eight acquisitions during its fiscal 2023, gaining combined annualized revenue of approximately $780 million. The company noted it invested $616 million in those eight acquisitions during the year.

2024 Guidance

Ferguson’s fiscal 2024 guidance showed the company expects broadly flat net sales, with adjusted operating margin forecasted to be 9.2% to 9.8%. This assumes mid-single digit market decline with continued company market outperformance, contribution from already-completed acquisitions and one additional sales day.

Ferguson expects the overall impact of price inflation to be broadly neutral for the year.

The company anticipates full-year capital expenditures to be between $400-450 million.

“FY2024 financial guidance reflects a continued challenging market backdrop, particularly in the first half of our fiscal year against strong prior year comparables,” Ferguson CEO Kevin Murphy said in a news release. “Our balanced end market exposure positions us well to leverage emerging multi-year structural tailwinds such as non-residential megaprojects. We remain confident in the strength of our markets over the medium and longer term and expect to capitalize on attractive growth opportunities.”

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events



You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.