Ferguson Posts August-October Sales Decline, Makes TX Acquisition - Modern Distribution Management

Log In

Ferguson Posts August-October Sales Decline, Makes TX Acquisition

Modest year-over-year increases in the previous quarter moved to declines in the company's 2024 first quarter, including a 4.9% organic revenue decline year-over-year.
Secaucus, NJ, USA - August 22, 2022: Ferguson Plumbing Supply he

Plumbing, HVAC and industrial supplies distribution giant Ferguson reported its 2024 fiscal first quarter results on Dec. 5, which spanned Aug. 1 through Oct. 31.

The results were led by 1Q sales of $7.71 billion that were down 2.8% year-over-year, following 4Q23’s 1.7% decline and a 16.6% increase in 1Q 2022. Organic revenue fell 4.9% year-over-year, which included a favorable 2.2% impact from acquisitions.

Ferguson said the decrease in net sales was primarily driven by a decline in its residential segment, partially offset by growth in non-residential sales. The company added that expected weakness in certain commodity categories drove modest overall price deflation of about 2% as Ferguson lapped strong inflation comparables.

Premium: Ferguson Eyes Market Opportunities, Acquisitions Despite Headwinds (Sept. 28)

In the U.S., Ferguson 1Q sales of $7.33 billion declined 2.7% year-over-year, while adjusted operating profit of $766 million fell 9.3%. 1Q U.S. organic sales fell 5.0% year-over-year.

Here is how Ferguson’s U.S. 1Q sales growth fared by customer group.

  • Residential Trade Plumbing: -12% (-11% in 4Q23)
  • HVAC: +4% (+4% in 4Q23)
  • Residential Building & Remodel: -3% (+2% in 4Q23)
  • Residential Digital Commerce: -14%
  • Waterworks: -1% (-1% in 4Q23)
  • Commercial/Mechanical: +6% (+6% in 4Q23)
  • Other (Fire Fabrication, Facilities Supply, Industrial): Flat (+6% in 4Q23)

In Canada, 1Q sales of $379 million fell 5.0%, while adjusted operating profit of $23 million fell 30.3%. 1Q Canada organic sales fell 3.3% year-over-year.

The company’s 1Q gross margin of 30.2% was down 30 basis points year-over-year and trailed 4Q23’s 30.6%. 1Q operating profit of $739 million (on 9.6% margin) was down 11.1% year-over-year and topped 4Q23’s $782 million (on 10.0% margin).

Ferguson’s 1Q adjusted EBITDA of $819 million was down 10.2% year-over-year and trailed 4Q23’s $858 million, while net profit of $519 million likewise was down 12.8% and trailed 4Q23’s $584 million.

RELATED: Ferguson Makes Trio of Acquisitions, Adding $450M Revenue (Aug. 2)

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.

In providing its 2024 full-year guidance, Ferguson said it expects broadly flat net sales and adjusted operating margin between 9.2% to 9.8%.

1Q Acquisition

Ferguson noted that it completed one acquisition during its 1Q24 in the form of SecureVision of America, Inc. — a waterworks metering distributor serving customers in Dallas, Austin, San Antonio and Western Texas. The company is based in Sweetwater, Texas.

Other Notes

On Dec. 1, MDM real estate management firm Adler Industrial shared that Ferguson has opened a new 165,000-square-foot distribution center in Nampa, Idaho — about 20 miles west of Boise.   

For its fiscal 2023 that ended July 31, Ferguson posted total annual sales of $29.73 billion — up 4.1% vs. 2022. See our full recap of the company’s fiscal 2023 here.

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.