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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-42200

Ferguson Enterprises Inc.
(Exact name of registrant as specified in its charter)


Delaware						38-4304133
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

751 Lakefront Commons

Newport News, Virginia 23606

+1-757-874-7795


(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class:	Trading Symbol:	Name of Each Exchange on Which Registered:
Common Stock, par value $0.0001 per share	FERG	The New York Stock Exchange
		London Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

As of April 28, 2026, the number of outstanding shares of common stock was 193,937,826.

TABLE OF CONTENTS


			PAGE


CERTAIN TERMS			1
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS			1
PART I – FINANCIAL INFORMATION			3
Item 1. Financial Statements			3
Condensed Consolidated Statements of Earnings			3
Condensed Consolidated Statements of Comprehensive Income			4
Condensed Consolidated Balance Sheets			5
Condensed Consolidated Statements of Stockholders’ Equity			6
Condensed Consolidated Statements of Cash Flows			7
Notes to the Condensed Consolidated Financial Statements			8
Note 1: Summary of significant accounting policies			8
Note 2: Segment and net sales information			10
Note 3: Weighted average shares			12
Note 4: Income tax			12
Note 5: Debt			13
Note 6: Assets and liabilities at fair value			14
Note 7: Commitments and contingencies			14
Note 8: Accumulated other comprehensive loss			14
Note 9: Retirement benefit obligations			15
Note 10: Stockholders’ equity			15
Note 11: Share-based compensation			15

Note 1 2 : Restructuring expenses			18

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			19
Item 3. Quantitative and Qualitative Disclosures About Market Risk			27
Item 4. Controls and Procedures			27
PART II - OTHER INFORMATION			28
Item 1. Legal Proceedings			28
Item 1A. Risk Factors			28
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			28
Item 5. Other Information			28
Item 6. Exhibits			29
SIGNATURES			30

CERTAIN TERMS

Unless otherwise specified or the context otherwise requires, the terms “Company,” “Ferguson,” “we,” “us,” and “our” and other similar terms used in this Quarterly Report on Form 10-Q (this “Quarterly Report”) refer to Ferguson Enterprises Inc. and its consolidated subsidiaries.

In connection with its fiscal year-end change from July 31st to December 31st, the Company filed audited financial statements for the five-month transition period from August 1, 2025 to December 31, 2025, on a Transition Report on Form 10-KT (the “Transition Report”). The condensed consolidated financial statements on this Quarterly Report should be read in conjunction with the financial statements and related notes thereto included in the Transition Report filed with the SEC on February 27, 2026. Except as otherwise specified or the context otherwise requires, references to years indicate the calendar year ended December 31st of the respective year. For example, references to the “first quarter of 2025” refer to the three months ended March 31, 2025.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain information included in this Quarterly Report 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 differ 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 financial 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 fluctuations, our financial condition and liquidity, legal or regulatory changes, and other statements concerning the success of our business and strategies.

Forward-looking statements can be identified by the use of forward-looking terminology, including terms such as “believes,” “estimates,” “anticipates,” “expects,” “forecasts,” “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 Quarterly Report are based on reasonable assumptions, you should be aware that many factors could cause actual results to differ 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, inflation/deflation, recession, labor and wage pressures, trade restrictions such as tariffs, sanctions and retaliatory countermeasures, interest rates, and geopolitical conditions);

•failure to rapidly identify or effectively 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 effectively 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 artificial intelligence (“AI”));

•failure of a key information technology system or process 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;

•ineffectiveness of or disruption in our domestic or international supply chain or our fulfillment 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 effectively 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 fleet 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;

•fluctuations in product prices/costs (e.g., including as a result of the use of commodity-priced materials, inflation/deflation, trade restrictions and/or failure to qualify for or maintain supplier rebates) and foreign currency;

•funding risks related to our defined benefit 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 (“NYSE”) and London Stock Exchange (“LSE”) 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 as set forth under the heading “Risk Factors” in our Transition Report and in other filings 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.

Part I - FINANCIAL INFORMATION

Item 1.Financial Statements

Ferguson Enterprises Inc.

Condensed Consolidated Statements of Earnings

(unaudited)


	Three months ended
	March 31,
(In millions, except per share amounts)	2026	2025
Net sales	$7,472	$7,213
Cost of sales	(5,154)	(4,997)
Gross profit	2,318	2,216
Selling, general and administrative expenses	(1,607)	(1,565)
Restructuring expenses	(2)	(51)
Depreciation and amortization	(97)	(93)
Operating profit	612	507
Interest expense, net	(45)	(46)
Other (expense) income, net	(7)	8
Income before income taxes	560	469
Provision for income taxes	(146)	(124)
Net income	$414	$345

Earnings per share - Basic	$2.13	$1.74

Earnings per share - Diluted	$2.13	$1.73

Weighted average number of shares outstanding:
Basic	194.6	198.8
Diluted	194.8	199.0

See accompanying Notes to the Condensed Consolidated Financial Statements.

Ferguson Enterprises Inc.

Condensed Consolidated Statements of Comprehensive Income

(unaudited)


	Three months ended
	March 31,
(In millions)	2026	2025
Net income	$414	$345
Other comprehensive (loss) income:
Foreign currency translation adjustments	(11)	—
Pension adjustments, net of tax impacts of ($1) and ($3), respectively	4	5
Total other comprehensive (loss) income, net of tax	(7)	5
Comprehensive income	$407	$350

See accompanying Notes to the Condensed Consolidated Financial Statements.

Ferguson Enterprises Inc.

Condensed Consolidated Balance Sheets

(unaudited)


	As of
(In millions, except share amounts)	March 31, 2026	December 31, 2025
Assets
Cash and cash equivalents	$820	$557
Accounts receivable, less allowances of $24 and $25, respectively	3,669	3,312
Inventories	4,676	4,588
Prepaid and other current assets	961	1,031
Assets held for sale	39	48
Total current assets	10,165	9,536
Property, plant and equipment, net	1,931	1,911
Operating lease right-of-use assets	1,893	1,832
Deferred income taxes, net	125	165
Goodwill	2,481	2,470
Other intangible assets, net	653	685
Other non-current assets	541	553
Total assets	$17,789	$17,152

Liabilities and stockholders’ equity
Accounts payable	$3,677	$3,117
Short-term debt	148	148
Current portion of operating lease liabilities	465	455
Other current liabilities	1,395	1,392
Liabilities held for sale	13	13
Total current liabilities	5,698	5,125
Long-term debt	3,979	3,978
Long-term portion of operating lease liabilities	1,489	1,436
Other long-term liabilities	749	756
Total liabilities	11,915	11,295

Stockholders’ equity:
Common stock, par value $0.0001; 500,000,000 shares authorized; 201,343,253 issued	—	—
Paid-in capital	1,011	996
Retained earnings	7,403	7,167
Treasury shares, 7,214,742 and 6,291,666 shares, respectively at cost	(1,501)	(1,274)
Accumulated other comprehensive loss	(1,039)	(1,032)
Total stockholders' equity	5,874	5,857
Total liabilities and stockholders' equity	$17,789	$17,152

See accompanying Notes to the Condensed Consolidated Financial Statements.

Ferguson Enterprises Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(unaudited)



	Three months ended
	March 31,
(In millions, except per share data)	2026	2025
Common stock:
Balance at beginning of period	$—	$—
Common stock issued	—	—
Balance at end of period	—	—

Paid-in capital:
Balance at beginning of period	996	908
Share-based compensation expense	15	10
Balance at end of period	1,011	918

Retained earnings:
Balance at beginning of period	7,167	5,887
Net earnings	414	345
Cash dividends declared of $0.89 and $0.83, respectively	(173)	(165)
Shares issued under employee stock plans	—	(2)
Other	(5)	—
Balance at end of period	7,403	6,065

Treasury shares:
Balance at beginning of period	(1,274)	(407)
Share repurchases	(227)	(204)
Shares issued under employee share plans, net	—	1
Balance at end of period	(1,501)	(610)

Accumulated other comprehensive loss:
Balance at beginning of period	(1,032)	(955)
Total other comprehensive (loss) income	(7)	5
Balance at end of period	(1,039)	(950)
Total stockholder's equity	$5,874	$5,423

See accompanying Notes to the Condensed Consolidated Financial Statements.

Ferguson Enterprises Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)


(In millions)	Three months ended
	March 31,
	2026	2025
Cash flows from operating activities:
Net income	$414	$345


Depreciation and amortization	97	93
Share-based compensation	16	9

Changes in deferred income taxes	38	(4)
Changes in inventories	(92)	(54)
Changes in receivables and other assets	(275)	(121)
Changes in accounts payable and other liabilities	543	656
Changes in income taxes payable	29	(51)
Other operating activities	2	1


Net cash provided by operating activities	772	874

Cash flows from investing activities:
Purchase of businesses acquired, net of cash acquired	(10)	(150)
Capital expenditures	(92)	(73)
Other investing activities	8	12


Net cash used in investing activities	(94)	(211)

Cash flows from financing activities:
Purchase of treasury shares	(236)	(207)
Repayments of debt	—	(775)
Proceeds from debt	—	475
Change in bank overdrafts	—	(119)
Cash dividends	(174)	(166)
Other financing activities	(3)	(22)
Net cash used in financing activities	(413)	(814)
Change in cash, cash equivalents and restricted cash	265	(151)
Effects of exchange rate changes	(2)	9
Cash, cash equivalents and restricted cash, beginning of period	581	773
Cash, cash equivalents and restricted cash, end of period	$844	$631

Supplemental Disclosures:
Cash paid for income taxes, net	$78	$180
Cash paid for interest	22	19
Accrued capital expenditures	12	6
Accrued dividends	173	165
Lease assets obtained in exchange for new operating lease liabilities (non-cash)	183	158

See accompanying Notes to the Condensed Consolidated Financial Statements.

Ferguson Enterprises Inc.

Notes to the Condensed Consolidated Financial Statements

(unaudited)

Note 1: Summary of significant accounting policies

Background

Ferguson Enterprises Inc. (including subsidiaries, the “Company”) (NYSE: FERG; LSE: FERG) is a Delaware corporation. Ferguson is a value-added distributor of essential water and air solutions, serving the specialized professional in the residential and non-residential North American 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. We sell through a common network of distribution centers, branches, counter service and expert sales associates, showroom consultants and e-commerce channels. The corporate headquarters of the Company is located at 751 Lakefront Commons, Newport News, Virginia 23606.

Basis of presentation

The accompanying unaudited condensed consolidated financial statements and notes to the condensed consolidated financial statements are presented in accordance with the rules and regulations of the SEC and accounting principles generally accepted in the United States of America (“U.S. GAAP”), but do not include all disclosures normally required in annual consolidated financial statements. In the opinion of management, the unaudited condensed consolidated financial statements contain all normal recurring adjustments necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented.

These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Transition Report. The financial results for the interim period may not be indicative of the financial results for the entire annual period.

Use of estimates

The preparation of the Company's interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions affecting certain reported amounts in the interim condensed consolidated financial statements and accompanying notes. Actual results may differ from those estimates.

Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits with banks with original maturities of three months or less and overdrafts to the extent there is a legal right of offset and practice of net settlement with cash balances. Cash equivalents also include amounts due from third-party credit card processors as they are both short-term and highly liquid in nature and are typically converted to cash within a few days of the sales transaction.

Restricted cash primarily consists of deferred consideration for business combinations, subject to various settlement agreements. These amounts are recorded in prepaid and other current assets and other non-current assets in the Company’s condensed consolidated balance sheets.

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows.


	As of
(In millions)	March 31, 2026	December 31, 2025
Cash and cash equivalents	$820	$557
Restricted cash	24	24
Total cash, cash equivalents and restricted cash	$844	$581

Supplier finance program

The Company maintains a supplier financing program with a third party financial institution wherein certain of the Company’s shipping and logistics providers in the United States can opt to receive early payment from the third party financial institution at a nominal discount. Such payment terms are independently negotiated between the third party financial institution and the shipping and logistics providers. The Company’s obligations to suppliers are unchanged and payment terms are consistent with the Company’s normal payment terms. All outstanding payables related to the supplier finance program are classified within accounts payable within our condensed consolidated balance sheets and were $64 million and $49 million as of March 31, 2026 and December 31, 2025, respectively.

Recently issued accounting standard updates (“ASU”)

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” This ASU requires new financial statement disclosures disaggregating prescribed expense categories within relevant income statement expense captions, including information about purchases of inventory, employee compensation, depreciation, and intangible asset amortization for each relevant expense caption on the face of the income statement. Per ASU No. 2025-01, the amendments under ASU No. 2024-03 are effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The ASU No. 2024-03 can be adopted either prospectively or retrospectively. The Company is currently evaluating the ASU to determine the impact on its disclosures.

In September 2025, the FASB issued ASU No. 2025-06, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40).” The amendments in this update remove all references to the previously existing software development project stages and require entities to start capitalizing software costs when management has authorized and committed funding to a software project and it is probable that the project will be completed with its intended functionality. The new standard is effective for fiscal years beginning after December 15, 2027. Early adoption is permitted and can be applied prospectively, retrospectively, or utilizing a modified transition approach. The Company is currently evaluating the ASU to determine the impact on its consolidated financial statements.

Recent accounting pronouncements pending adoption that are not discussed above are either not applicable, or will not have, or are not expected to have, a material impact on our consolidated financial condition, results of operations or cash flows.

Note 2: Segment and net sales information

The Company reports its financial results of operations on a geographical basis in the following two reportable segments: United States and Canada. Each segment generally derives its revenues in the same manner as described in Note 1, Summary of significant accounting policies included in the Transition Report. The Company uses adjusted operating profit as its measure of segment profit. Certain income and expenses are not allocated to the Company’s segments and, thus, the information that management uses to make operating decisions and assess performance does not reflect such amounts.

This segment structure reflects the financial information and reports used by the Company’s management, specifically its chief operating decision makers (“CODM”), to make decisions regarding the Company’s business, including resource allocations and performance assessments, as well as the current operating focus in compliance with ASC 280, Segment Reporting. The Company’s CODM are the Chief Executive Officer and the Chief Financial Officer.

The significant expenses reviewed by the CODM include operating costs and costs of sales. The operating costs evaluated by the CODM are primarily SG&A, including depreciation expense on long lived assets and software amortization expense.

The CODM use segment adjusted operating profit to evaluate performance and allocate resources (including employees, property, and financial or capital resources) in conjunction with the annual budget process, as well as during periodic business reviews.

Segment results were as follows:


	Three months ended
	March 31,
(In millions)	2026	2025
Net sales:
United States	$7,146	$6,904
Canada	326	309
Total net sales	7,472	7,213

Cost of sales:
United States	(4,915)	(4,772)
Canada	(239)	(225)

Operating costs:
United States	(1,575)	(1,521)
Canada	(82)	(78)

Adjusted operating profit:
United States	656	611
Canada	5	6
Total segment adjusted operating profit	661	617

Central and other costs(1)	(14)	(20)
Restructuring activities(2)	(2)	(51)
Amortization of acquired intangible assets	(33)	(39)
Interest expense, net	(45)	(46)
Other (expense) income, net	(7)	8
Income before income taxes	$560	$469

(1)Primarily includes SG&A that is not related to a segment.

(2)See Note 12, Restructuring expenses for further information.

Capital expenditures and depreciation and amortization by segment were as follows:


	Three months ended
	March 31,
(In millions)	2026	2025
Capital expenditures:
United States	$90	$72
Canada	2	1

Total capital expenditures	$92	$73

Depreciation and amortization:
United States	$92	$89
Canada	5	4

Total depreciation and amortization(1)	$97	$93
(1) Includes amortization of acquired intangible assets of $33 million and $39 million in the three months ended March 31, 2026 and 2025, respectively. These amounts are not included in segment adjusted operating profit.

Assets by segment included:


	As of
(In millions)	March 31, 2026	December 31, 2025
Assets:
United States	$15,872	$15,444
Canada	929	946
Total segment assets	16,801	16,390
Corporate	988	762
Total assets	$17,789	$17,152

Long-lived assets are as follows:


	As of
(In millions)	March 31, 2026	December 31, 2025
Long-lived assets:
United States	$1,887	$1,865
Canada	44	46
Total long-lived assets	$1,931	$1,911

Net sales disaggregation

A disaggregation of net sales by customer group in the United States is as follows:


	Three months ended
	March 31,
	2026		2025
Customer Group
Waterworks	23	%	22	%
Ferguson Home	21	%	22	%
Commercial/Mechanical	16	%	14	%
Residential Trade Plumbing	15	%	16	%
HVAC	11	%	11	%
Industrial	7	%	7	%
Facilities Supply	4	%	5	%
Fire & Fabrication	3	%	3	%
Total United States	100	%	100	%

The Company does not disaggregate sales for Canada based on materiality. No sales to an individual customer accounted for more than 10% of net sales during any of the periods presented.

The Company is a value-added distributor in North America, providing a wide range of products from plumbing, HVAC, appliances, and lighting to PVF, water and wastewater solutions, and more. We offer a broad line of products, and items are regularly added to and removed from the Company's inventory. Accordingly, it would be impractical to provide sales information by product category due to the way the business is managed, and the dynamic nature of the inventory offered.

Note 3: Weighted average shares

The following table shows the calculation of diluted shares:


	Three months ended
	March 31,
(In millions)		2026	2025
Weighted average number of shares outstanding:
Basic weighted average shares		194.6	198.8
Effect of dilutive shares(1)		0.2	0.2
Diluted weighted average shares		194.8	199.0

Excluded anti-dilutive shares		—	0.1

(1)Represents the potential dilutive impact of share-based awards.

Note 4: Income tax

The Company’s tax provision for each period presented was calculated using an estimated annual tax rate, adjusted for discrete items occurring during the applicable period to arrive at an effective tax rate. The effective income tax rates for the relevant periods were as follows:


	Three months ended
	March 31,
		2026		2025
Effective tax rate		26.1	%	26.4	%

During the three months ended March 31, 2026, there were no material changes to the Company’s unrecognized tax benefits when compared to those items disclosed in the Transition Report.

Note 5: Debt

The Company’s debt obligations consisted of the following:


	As of
(In millions)	March 31, 2026	December 31, 2025


Fixed-rate debt:
Private placement notes	300	300
Unsecured senior notes, due April 2027 - October 2034	3,850	3,850
Subtotal	$4,150	$4,150
Less: current maturities of debt	(148)	(148)
Unamortized discounts and debt issuance costs	(21)	(22)
Interest rate swap - fair value adjustment	(2)	(2)
Total long-term debt	$3,979	$3,978

Receivables Securitization Facility

The Company maintains a Receivables Securitization Facility (the “Receivables Facility”) which is primarily governed by the Receivables Purchase Agreement, dated July 31, 2013, as amended from time to time (the “Receivables Purchase Agreement”). Pursuant to an Omnibus Amendment and Consent to the Receivables Purchase Agreement dated March 13, 2026, the Maximum Net Investment, as defined in the Receivables Purchase Agreement, was reduced by $15 million. As a result, the Receivables Facility now consists of funding for up to $900 million, terminating on October 29, 2027. The Company maintains the ability to increase the aggregate total available amount under the Receivables Facility up to a total of $1.5 billion, subject to lender participation. As of March 31, 2026, no borrowings were outstanding under the Receivables Facility.

Revolving Credit Facility

The Company, pursuant to a revolving credit agreement (the “Revolving Credit Agreement”), maintains a revolving credit facility that has aggregate total available credit commitments of $1.5 billion (the “Revolving Facility”). The Revolving Credit Agreement provides the Company with the ability to increase the aggregate capacity of the facility by $500 million under certain conditions, including the receipt of additional or increased lender commitments. As of March 31, 2026, no borrowings were outstanding under the Revolving Facility.

On April 2, 2026, the Company extended the stated maturity date of the commitments under the Revolving Facility from April 2, 2030 to April 2, 2031 by utilizing one of the two extension options available in the Revolving Credit Agreement.

Private Placement Notes

In November 2026, $150 million of private placement notes will mature.

Other

The Company was in compliance with all debt covenants that were in effect as of March 31, 2026.

Note 6: Assets and liabilities at fair value

The Company has not changed its valuation techniques for measuring the fair value of any financial assets or liabilities during the periods presented. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and other debt instruments, such as the Receivables Facility due to its variable interest rate, approximated their fair values as of March 31, 2026 and December 31, 2025.

The Company’s derivatives (interest rate swaps which are considered fair value hedges) and investments in equity instruments are carried at fair value on the condensed consolidated balance sheets (Level 2 and Level 3 fair value inputs, respectively) and are not material. The notional amount of the Company’s outstanding fair value hedges was $150 million as of March 31, 2026 and December 31, 2025.

Carrying amounts and the related estimated fair value of the Company’s long-term debt were as follows:


	March 31, 2026		December 31, 2025
(In millions)	Carrying Amount	Fair Value	Carrying Amount	Fair Value
Unsecured senior notes	$3,829	$3,781	$3,828	$3,833
Private placement notes	300	299	300	300

Note 7: Commitments and contingencies

The Company is, from time to time, involved in various legal proceedings considered to be normal course of business in relation to, among other things, the products that we supply, contractual and commercial disputes, fleet incidents and disputes with employees. Provision is made if, on the basis of current information and professional advice, liabilities are considered probable. In the case of unfavorable outcomes, the Company may benefit from applicable insurance protection. The Company does not expect any of its pending legal proceedings to have a material adverse effect on its results of operations, financial position or cash flows.

Note 8: Accumulated other comprehensive loss

The change in accumulated other comprehensive loss was as follows:


(In millions, net of tax)	Foreign currency translation	Pensions	Total
Balance at December 31, 2025	($456)	($576)	($1,032)
Other comprehensive (loss) income before reclassifications	(11)	—	(11)
Amounts reclassified from accumulated other comprehensive loss	—	4	4
Other comprehensive (loss) income	(11)	4	(7)
Balance at March 31, 2026	(467)	(572)	(1,039)


(In millions, net of tax)	Foreign currency translation	Pensions	Total
Balance at December 31, 2024	($491)	($464)	($955)
Other comprehensive income before reclassifications	—	2	2
Amounts reclassified from accumulated other comprehensive loss	—	3	3
Other comprehensive (loss) income	—	5	5
Balance at March 31, 2025	(491)	(459)	(950)

Amounts reclassified from accumulated other comprehensive loss related to pension and other post-retirement items include the related income tax impacts. Such amounts consisted of the following:


	Three months ended
	March 31,
(In millions)	2026	2025
Amortization of actuarial losses	$5	$4
Tax benefit	(1)	(1)
Amounts reclassified from accumulated other comprehensive loss	$4	$3

Note 9: Retirement benefit obligations

The Company maintains pension plans in the U.K. and Canada. The components of net periodic pension cost, which are included in Other (expense) income, net in the condensed consolidated statements of earnings, were as follows:


	Three months ended
	March 31,
(In millions)	2026	2025
Interest cost	($18)	($15)
Expected return on plan assets	17	16
Amortization of net actuarial losses	(5)	(4)
Net periodic cost	($6)	($3)

The impact of exchange rate fluctuations is included in the amortization of net actuarial losses line above.

Note 10: Stockholders’ equity

The following table presents a summary of the Company’s share activity:


	Three months ended
	March 31,
	2026	2025
Common stock:
Balance at beginning of period	201,343,253	201,343,253
Common stock issued	—	—
Balance at end of period	201,343,253	201,343,253
Treasury shares:
Balance at beginning of period	(6,291,666)	(2,035,323)
Share repurchases	(926,015)	(1,180,465)
Treasury shares used to settle share-based compensation awards	2,939	7,452
Balance at end of period	(7,214,742)	(3,208,336)
Total shares outstanding at end of period	194,128,511	198,134,917

Share Repurchases

As of March 31, 2026, the Company had completed $4.7 billion in share repurchases under a September 2021 program that authorized up to $5.0 billion. In April 2026, the board of directors authorized a new share repurchase program of up to $2 billion in aggregate purchases of common stock, replacing the prior program.

Note 11: Share-based compensation

The Company grants share-based compensation awards that can be broadly characterized by the underlying vesting conditions as follows:

•Time vested, restricted stock units (“RSU”) vest over time. RSU awards granted prior to October 2024 cliff vest, typically at the end of three years. RSU awards granted in October 2024 and beyond will vest in equal, annual installments over three years. The fair value of these awards is based on the closing share price on the date of grant.

•Multiple metric performance stock units granted to certain members of management (“PSU-EX”) typically vest following three-year performance cycles. The number of shares issued will vary based upon the Company’s performance against pre-determined goals for adjusted EPS growth (diluted), return on capital employed (“ROCE”) and relative total shareholder return (“rTSR”). The fair value of awards vesting based upon EPS growth (diluted) and ROCE are equal to the closing share price on the date of grant and the fair value of rTSR awards are determined using a Monte-Carlo simulation. The assumptions used in the Monte Carlo simulations for the rTSR granted in 2026 were as follows:


	Three months ended
	March 31,
rTSR Fair value assumptions:	2026
Expected annualized volatility	29.48	%
Risk free interest rate	3.75	%
Simulation period	2.8 years
Grant date fair value of rTSR awards	$237.16

The following table summarizes the share-based incentive awards activity for the three months ended March 31, 2026:


	Number of shares	Weighted average grant date fair value
Outstanding as of December 31, 2025	712,184	$191.67
RSU awards granted	234,808	219.73

PSU-EX granted	89,457	225.54

Share adjustments based on performance	(21,836)	255.62
Vested	(2,860)	169.26
Forfeited	(6,492)	198.34
Outstanding as of March 31, 2026	1,005,261	$199.74

The following table relates to all share-based compensation awards:


	Three months ended
	March 31,
(In millions)	2026	2025
Share-based compensation expense (within SG&A)	$15	$9
Income tax benefit	4	2

Total unrecognized share-based compensation expense for all share-based payment plans was $152 million at March 31, 2026, which is expected to be recognized over a weighted average period of 2.4 years.

Stock Options

The Company grants stock option awards to certain members of management with an exercise price equal to the closing share price of the Company's common stock on the last trading day prior to the date of grant. These options vest and become exercisable over three years, in equal, annual installments beginning one year from the date of grant, and expire 10 years from the date of grant.

The fair value of the Company's stock options was estimated on the date of grant using the Black-Scholes option-pricing model. When determining expected volatility, the Company considers the historical volatility of the Company’s stock price. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant, based on the options’ expected term. The expected term of the options was estimated using the “simplified method” as permitted under Staff Accounting Bulletin 110. We consider the use of the simplified method appropriate due to the lack of sufficient historical data.

The assumptions used in the Black-Scholes option-pricing model in 2026 were as follows:


	Three months ended
	March 31,
Stock option fair value assumptions used:	2026
Expected annualized volatility	32.14	%
Dividend yield	1.54	%
Risk free interest rate	3.89	%
Expected term	6 years
Grant date fair value of stock option awards	$75.22

Stock option activity in 2026 is summarized in the following table:


	Number of shares	Weighted average exercise price per share	Aggregate intrinsic value (in millions)	Weighted average remaining contractual life (years)
Outstanding as of December 31, 2025	83,316	$211.52
Granted	61,416	231.63


Outstanding as of March 31, 2026	144,732	$220.06	$2	9.3
Exercisable as of March 31, 2026	19,793	$201.38	$1	8.5

Note 12: Restructuring expenses

The Company’s restructuring expenses are summarized below:


	Three months ended
	March 31,
(In millions)	2026	2025
Corporate restructuring expenses	$2	$—
Business restructuring expenses	—	51
Restructuring expenses	$2	$51

Corporate restructuring expenses

In the first quarter of 2026, corporate restructuring expenses primarily related transition activities following the establishment of our parent company’s domicile in the United States. The Company does not expect further charges to be material.

Business restructuring expenses

In the first quarter of 2025, the Company implemented targeted actions to streamline operations, enhancing speed and efficiency to better serve customers and drive further profitable growth. As a result of these actions, non-recurring business restructuring expenses of $51 million were incurred in the quarter, primarily in the United States. The charges primarily related to severance costs of $36 million, as well as $15 million of non-cash branch and facility costs, mainly related to lease impairments.

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s discussion and analysis of financial condition and results of operations (“MD&A”) is intended to convey management’s perspective regarding the Company’s operational and financial performance for the three months ended March 31, 2026 and 2025, respectively. This MD&A should be read in conjunction with the unaudited condensed consolidated financial statements and related notes appearing in “Item 1. Financial Statements” of this Quarterly Report (the “Condensed Consolidated Financial Statements”) and the consolidated financial statements and related notes in “Item 8. Financial Statements and Supplementary Data” of the Transition Report.

The following discussion contains trend information and other forward-looking statements. Actual results could differ materially from those discussed in these forward-looking statements, as well as from our historical performance, due to various factors, including, but not limited to, those referred to in “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” and elsewhere in this Quarterly Report.

Overview

Ferguson is a value-added distributor of essential water and air solutions, serving the specialized professional in the residential and non-residential North American 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. Ferguson is headquartered in Newport News, Virginia.

The following table presents highlights of the Company’s performance for the periods below:


	Three months ended
	March 31,
(In millions, except per share amounts)	2026	2025
Net sales	$7,472	$7,213
Operating profit	612	507
Net income	414	345

Earnings per share - diluted	2.13	1.73

Net cash provided by operating activities	772	874

Supplemental non-GAAP financial measures:(1)
Adjusted operating profit	647	597
Adjusted earnings per share - diluted	2.28	2.09

(1) The Company uses certain non-GAAP measures, which are not defined or specified under U.S. GAAP. See the section titled “Non-GAAP Reconciliations and Supplementary Information.”

For the first quarter of 2026, net sales increased by 3.6% compared with the first quarter of 2025, primarily due to price inflation and incremental sales from acquisitions, partially offset by lower volume.

For the first quarter of 2026, operating profit increased by 20.7% (adjusted operating profit increased 8.4%), compared with the first quarter of 2025. The year-over-year change was driven by higher sales and the associated gross profit, partially offset by higher variable operating costs.

For the first quarter of 2026, diluted earnings per share was $2.13 (adjusted diluted earnings per share: $2.28), increasing 23.1% (9.1% on an adjusted basis) compared with the first quarter of 2025 due to higher net income and the impact of share repurchases.

Net cash provided by operating activities decreased to $772 million in the first quarter of 2026 compared with $874 million in the first quarter of 2025, primarily reflecting an increased investment in working capital, partially offset by higher net income after adjusting for non-cash items.

Results of Operations


	Three months ended
	March 31,
(In millions)	2026	2025
Net sales	$7,472	$7,213
Cost of sales	(5,154)	(4,997)
Gross profit	2,318	2,216
Selling, general and administrative expenses	(1,607)	(1,565)
Restructuring expenses	(2)	(51)
Depreciation and amortization	(97)	(93)
Operating profit	612	507
Interest expense, net	(45)	(46)
Other (expense) income, net	(7)	8
Income before income taxes	560	469
Provision for income taxes	(146)	(124)
Net income	$414	$345

Net sales

For the first quarter of 2026, net sales were $7.5 billion, an increase of $0.3 billion, or 3.6%, compared with the first quarter of 2025. The increase in net sales was primarily driven by mid-single digit price inflation and incremental sales from acquisitions of 0.8%, partially offset by lower sales volume. The Company’s increase in net sales was driven by growth in non-residential markets in its United States segment.

Gross profit

Gross profit in the first quarter of 2026 increased $102 million, or 4.6%, compared with the first quarter of 2025, primarily reflecting increased net sales. Gross profit as a percentage of sales was 31.0% in the first quarter of 2026 compared with 30.7% in the first quarter of 2025. The increase of 0.3% primarily reflected solid execution across the business.

Selling, general and administrative (“SG&A”) expenses

SG&A expenses in the first quarter of 2026 increased $42 million, or 2.7%, compared with the first quarter of 2025. SG&A as a percentage of sales was 21.5% in the first quarter of 2026 compared with 21.7% in the first quarter of 2025. The decrease in SG&A as a percentage of sales primarily reflects improved productivity and operating leverage of the Company’s cost base.

Income tax

Income tax expense was $146 million in the first quarter of 2026, an increase of $22 million, or 17.7%, compared with the first quarter of 2025 due to higher income before income taxes. The Company’s effective tax rate of 26.1% in the first quarter of 2026 was generally in-line with 26.4% for the first quarter of 2025.

Net income

Net income was $414 million in the first quarter of 2026, an increase of $69 million, or 20.0%, compared with the first quarter of 2025, primarily due to the various elements described in the sections above.

Segment results

United States


	Three months ended
	March 31,
(In millions)	2026	2025
Net sales	$7,146	$6,904
Adjusted operating profit	656	611

Net sales for the United States segment were $7.1 billion in the first quarter of 2026, an increase of $242 million, or 3.5%, compared with the first quarter of 2025. The increase in net sales was primarily driven by mid-single digit price inflation and incremental sales from acquisitions of 0.6%, partially offset by lower sales volume. Net sales in non-residential markets, representing approximately half of revenue in the United States, increased approximately 8% compared with the first quarter of 2025. This increase was driven by commercial/mechanical, industrial and waterworks, including large capital project activity. Net sales in residential markets decreased approximately 1% compared with the first quarter of 2025 in light of weak new construction activity, along with soft repair, maintenance and improvement (“RMI”) work.

Adjusted operating profit for the United States segment was $656 million in the first quarter of 2026, an increase of $45 million, or 7.4%, compared with the first quarter of 2025, primarily reflecting higher sales and the associated gross profit, partially offset by higher variable operating costs.

Canada


	Three months ended
	March 31,
(In millions)	2026	2025
Net sales	$326	$309
Adjusted operating profit	5	6

Net sales for the Canada segment were $326 million in the first quarter of 2026, an increase of $17 million, or 5.5%, compared with the first quarter of 2025. This increase in net sales was primarily driven by incremental sales from acquisitions of 5.8%, the impact of foreign currency exchange rates of 4.6% and low to mid-single digit price inflation. These increases were partially offset by lower volume and the impact of a non-core business divestments of 4.6%.

Adjusted operating profit for the Canada segment decreased by $1 million in the first quarter of 2026, compared with the first quarter of 2025 due to higher operating costs, partially offset by higher gross profit.

Non-GAAP Reconciliations and Supplementary Information

The Company reports its financial results in accordance with U.S. GAAP. However, the Company believes certain non-GAAP financial measures provide users of the Company’s financial information with additional meaningful information to assist in understanding financial results and assessing the Company’s performance from period to period. These non-GAAP financial measures include adjusted operating profit, adjusted net income and adjusted earnings per share (“adjusted EPS”) - diluted. 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 Company’s Board of Directors. 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 reflect 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 financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. These non-GAAP financial measures should not be considered in isolation or as a substitute for results reported under U.S. GAAP. These non-GAAP financial measures reflect 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 financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.

Reconciliation of net income to adjusted operating profit

The following table reconciles net income (U.S. GAAP) to adjusted operating profit (non-GAAP):


	Three months ended
	March 31,
(In millions)	2026	2025
Net income	$414	$345
Provision for income taxes	146	124
Interest expense, net	45	46
Other expense (income), net	7	(8)
Operating profit	612	507
Corporate restructuring expenses(1)	2	—
Business restructuring expenses(2)	—	51
Amortization of acquired intangibles	33	39
Adjusted operating profit	$647	$597

(1)For the three months ended March 31, 2026, corporate restructuring expenses primarily related to incremental costs in connection with transition activities following the establishment of our parent company’s domicile in the United States.

(2)For the three months ended March 31, 2025, business restructuring expenses primarily related to the Company’s implementation of targeted actions to streamline operations, enhancing speed and efficiency to better serve customers and drive further profitable growth.

Reconciliation of net income to adjusted net income and adjusted EPS - diluted

The following table reconciles net income (U.S. GAAP) to adjusted net income and adjusted EPS - diluted (non-GAAP):


	Three months ended
	March 31,
(In millions, except per share amounts)	2026		2025
		per share(1)		per share(1)
Net income	$414	$2.13	$345	$1.73
Corporate restructuring expenses(2)	2	0.01	—	—
Business restructuring expenses(3)	—	—	51	0.26
Amortization of acquired intangibles	33	0.17	39	0.20
Discrete tax adjustments(4)	4	0.02	3	0.02
Tax impact on non-GAAP adjustments(5)	(9)	(0.05)	(23)	(0.12)
Adjusted net income	$444	$2.28	$415	$2.09

Diluted weighted average shares outstanding	194.8		199.0

(1)Per share on a dilutive basis.

(2)For the three months ended March 31, 2026, corporate restructuring expenses primarily related to incremental costs in connection with transition activities following the establishment of our parent company’s domicile in the United States.

(3)For the three months ended March 31, 2025, business restructuring expenses primarily related to the Company’s implementation of targeted actions to streamline operations, enhancing speed and efficiency to better serve customers and drive further profitable growth.

(4)For the three months ended March 31, 2026 and 2025, discrete tax adjustments were mainly related to interest on uncertain tax positions.

(5)For the three months ended March 31, 2026, the tax impact on non-GAAP adjustments primarily related to the amortization of acquired intangibles. For the three months ended March 31, 2025, the tax impact on non-GAAP adjustments related to the restructuring expenses and the amortization of acquired intangibles.

Liquidity and Capital Resources

The Company believes its current cash position coupled with cash flow anticipated to be generated from operations and access to capital should be sufficient to meet its operating cash requirements for the next 12 months and will also enable the Company to invest and fund capital expenditures, acquisitions, dividend payments, share repurchases, required debt payments and other contractual obligations through the next several years. The Company also anticipates that it has the ability to obtain alternative sources of financing, if necessary.

The Company’s material cash requirements include contractual and other obligations arising in the normal course of business. These obligations primarily include debt service and related interest payments, operating lease obligations and other purchase obligations. The nature and composition of such existing cash requirements have not materially changed from those disclosed in the Transition Report other than items updated in this Quarterly Report.

Cash flows

As of March 31, 2026 and December 31, 2025, the Company had cash and cash equivalents of $820 million and $557 million, respectively. In addition to cash, the Company had $2.4 billion of available liquidity from undrawn debt facilities as of March 31, 2026.

As of March 31, 2026, the Company’s total debt was $4.1 billion. The Company anticipates that it will be able to meet its debt obligations as they become due.

Cash flows from operating activities


	Three months ended
	March 31,
(In millions)	2026	2025
Net cash provided by operating activities	$772	$874

Net cash provided by operating activities was $772 million and $874 million for the three months ended March 31, 2026 and 2025, respectively. The $102 million decrease was mainly due to an increased investment in working capital compared with the prior year, partially offset by higher net income (adjusted for non-cash items) and lower cash tax payments due to timing. The increase in working capital was primarily driven by an increase in receivables due to the timing of collections year-over-year, higher inventory purchases in consideration of customer demand, the timing of vendor payments compared with the prior year and the change in timing of cash incentive payouts in light of the Company’s change to a calendar year-end.

Cash flows from investing activities


	Three months ended
	March 31,
(In millions)	2026	2025
Net cash used in investing activities	($94)	($211)

Capital expenditures totaled $92 million and $73 million for the three months ended March 31, 2026 and 2025, respectively. These investments were primarily for strategic projects to support future growth, such as new market distribution centers, our branch network and new technology. In addition, the Company invested $10 million and $150 million in new acquisitions for the three months ended March 31, 2026 and 2025, respectively.

Cash flows from financing activities


	Three months ended
	March 31,
(In millions)	2026	2025
Net cash used in financing activities	($413)	($814)

Dividends paid to shareholders were $174 million and $166 million for the three months ended March 31, 2026 and 2025, respectively.

Share repurchases under the Company’s September 2021 share repurchase program were $236 million and $207 million for the three months ended March 31, 2026 and 2025, respectively.

Net payments from debt transactions were $300 million for the three months ended March 31, 2025 due to net repayments under the Receivables Facility. The Company did not have any debt transactions in the first quarter of 2026.

Debt facilities

The following section summarizes certain material provisions of our long-term debt facilities and current obligations. The following description is only a summary, does not purport to be complete and is qualified in its entirety by reference to the documents governing such indebtedness.


	As of
(In millions)	March 31, 2026	December 31, 2025
Short-term debt	$148	$148
Long-term debt	3,979	3,978
Total debt	$4,127	$4,126

Private Placement Notes

In June 2015 and November 2017, Wolseley Capital, Inc., a wholly-owned subsidiary of the Company, privately placed fixed rate notes (the “Private Placement Notes”). As of March 31, 2026, $300 million in Private Placement Notes remain outstanding.

In November 2026, $150 million of private placement notes will mature.

Unsecured Senior Notes

The Company has issued $3.85 billion in various issuances of unsecured senior notes.

Receivables Securitization Facility

The Company maintains a Receivables Securitization Facility with an aggregate total available amount of $900 million (the “Receivables Facility”). The Company has the ability to increase the aggregate total available amount under the Receivables Facility up to a total of $1.5 billion from time to time, subject to lender participation. As of March 31, 2026, no borrowings were outstanding under the Receivables Facility.

Revolving Credit Facility

The Company, pursuant to a revolving credit agreement (the “Revolving Credit Agreement”), maintains a revolving credit facility that has aggregate total available credit commitments of $1.5 billion (the “Revolving Facility”). The Revolving Credit Agreement provides the Company with the ability to increase from time to time the aggregate capacity of the facility by $500 million under certain conditions, including the receipt of additional or increased lender commitments. As of March 31, 2026, no borrowings were outstanding under the Revolving Facility.

Other

The Company was in compliance with all debt covenants that were in effect as of March 31, 2026.

See Note 5, Debt to the Condensed Consolidated Financial Statements and the notes to the consolidated financial statements in “Item 8. Financial Statements and Supplementary Data” of the Transition Report for further details regarding the Company’s debt.

There have been no significant changes to the Company’s policies on accounting for, valuing or managing the risk of financial instruments during the three months ended March 31, 2026.

Guarantor Disclosures

Ferguson Enterprises Inc. (the “Issuer”) is the issuer of the 4.350% Senior Notes due 2031 and 5.000% Senior Notes due 2034. The obligations under both series of senior notes are unsecured and are fully and unconditionally guaranteed on an unsecured basis by Ferguson UK Holdings Limited (the “Guarantor” and together with the Issuer, the “Obligor Group”).

The Issuer is a holding company that primarily repurchases shares and pays dividends, issues and services third-party debt obligations, and engages in certain corporate and headquarters activities, as well as holds an investment in its direct subsidiary, that primarily holds investments in and borrows from the Guarantor. The Guarantor is a holding company that primarily issues and services third-party debt obligations and holds investments in, borrows from and lends to non-guarantor subsidiary operating companies. These activities are generally funded by non-guarantor subsidiaries. The Guarantor is a private limited company incorporated under the laws of England and Wales and an indirect subsidiary of the Issuer.

Summarized Financial Information of Obligor Group

The following tables present the summarized financial information specified in Rule 1-02(bb)(1) of Regulation S-X for the Obligor Group on a combined basis, after elimination of intercompany transactions and balances between the Obligor Group, and excluding the investments in and equity in the earnings of any non-guarantor subsidiaries. The summarized financial information has been prepared in accordance with Rule 13-01 of Regulation S-X. The summarized financial information should be read in conjunction with the Condensed Consolidated Financial Statements and notes thereto included herein and the audited consolidated financial statements and notes thereto included in the Transition Report.


	As of
(In millions)	March 31, 2026	December 31, 2025
Current assets	$44	$46
Non-current assets	2	2
Current liabilities	203	214
Non-current liabilities	1,503	1,500
Due (to)/from non-guarantor subsidiaries, net	(51)	370


			Three months ended
			March 31,
(In millions)			2026
Net sales			$—
Gross profit			—
Operating loss			(12)
Net loss			(37)

Other interest income, net from non-guarantor subsidiaries			16
Other loss, net from non-guarantor subsidiaries(1)			(32)

(1)Includes income from intercompany transaction with non-guarantor subsidiaries, primarily from non-cash dividend transactions.

Critical accounting policies and estimates

There have been no material changes to our critical accounting policies as disclosed in the Transition Report.

Item 3.Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes to the quantitative and qualitative disclosures about market risk disclosed in the Transition Report.

Item 4.Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this Quarterly Report, our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has carried out an evaluation of the effectiveness of our disclosure controls and procedures, as defined in Rules 13a-15(e) or 15d-15(e) promulgated under the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of March 31, 2026. The term “disclosure controls and procedures” means controls and other procedures that are designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the SEC. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in our reports that we file or submit under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding our required disclosure. In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well conceived and operated, can only provide reasonable assurance that the objectives of the disclosure controls and procedures are met.

Based on their evaluation as of the end of the period covered by this Quarterly Report, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective at a reasonable assurance level.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

The Company is from time to time a party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. With respect to such lawsuits, claims and proceedings, the Company records reserves when it is probable a liability has been incurred and the amount of loss can be reasonably estimated. The Company does not expect any of its pending legal proceedings to have a material adverse effect on its results of operations, financial position or cash flows. The Company maintains liability insurance for certain risks that are subject to certain self-insurance limits.

Item 1A.Risk Factors

As of the date of this Quarterly Report, there have been no material changes to the risk factors disclosed in our Transition Report. We may disclose changes to such factors or disclose additional factors from time to time in our future filings with the SEC.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

Issuer purchases of equity shares

The following table presents the number and average price of shares purchased in each month of the first quarter of 2026:


(In millions, except share count and per share amount)	(a) Total Number of Shares Purchased	(b) Average Price Paid per Share	(c) Total Number of Shares Purchased as Part of Publicly Announced Program(1)	(d) Maximum Value of Shares that May Yet Be Purchased Under the Program(1)
January 1- January 31, 2026	350,471	$241.22	350,471	$475
February 1 - February 28, 2026	294,531	$259.55	294,531	$399
March 1 - March 31, 2026	281,013	$227.93	281,013	$335
	926,015		926,015

(1)In September 2021, the Company announced a program to repurchase up to $1.0 billion of shares. Since the initial authorization, the Company has announced from time-to-time various increases, bringing the total authorized share repurchase program to $5.0 billion. As of March 31, 2026, the Company had completed $4.7 billion in share repurchases under the 2021 authorization. In April 2026, the board of directors authorized a new share repurchase program of up to $2 billion in aggregate purchases of common stock, replacing the prior program.

Item 5.Other Information

Insider trading arrangements

None.

Item 6.Exhibits

The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report.


(a)			Exhibits


Exhibit						Description
3.1						Amended and Restated Certificate of Incorporation of Ferguson Enterprises Inc. (incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K (File No. 001-42200) filed by Ferguson Enterprises Inc. with the SEC on August 1, 2024).
3.2						Amended and Restated Bylaws of Ferguson Enterprises Inc. (incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K (File No. 001-42200) filed by Ferguson Enterprises Inc. with the SEC on September 16, 2025).
10.1*†						Omnibus Amendment and Consent, dated March 13, 2026, among Ferguson Receivables, LLC, as seller, Ferguson Enterprises, LLC, as servicer, the originators, the lenders as conduit purchasers and committed purchasers, letters of credit banks and facility agents party each thereto, Royal Bank of Canada, as administrative agent, and Ferguson Enterprises Inc. as parent, amending the Receivables Purchase Agreement and the Purchase and Contribution Agreement.
22.1						List of Subsidiary Guarantors (incorporated by reference to Exhibit 22.1 of the Registration Statement on Form S-3 (File No. 333-282398) filed by Ferguson Enterprises Inc. and Ferguson UK Holdings Ltd with the SEC on September 30, 2024).
31.1*						Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*						Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**						Certification of Chief Executive Officer under Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**						Certification of Chief Financial Officer under Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*						Inline XBRL Instance Document—this instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document
101.SCH*						Inline XBRL Taxonomy Extension Schema Document
101.CAL*						Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*						Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*						Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*						Inline XBRL Taxonomy Extension Presentation Linkbase Document
104*						Cover Page Interactive Data File (embedded within the Inline XBRL document)

* Filed herewith

** Furnished herewith

† Certain portions of this exhibit (indicated by “[***]”) have been omitted pursuant to Item 601(b)(10) of Regulation S-K.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

May 5, 2026


			Ferguson Enterprises Inc.
						/s/ William Brundage
			Name:			William Brundage
			Title:			Chief Financial Officer
						(Principal Financial Officer and Duly Authorized Officer)

Ferguson Enterprises Inc. /DE/ 10-Q