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 ~~December~~April 228, ~~2025~~2026, the number of outstanding shares of common stock was ~~195~~193,~~545~~937,~~957~~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: Revenue and segment information			10
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			1615
Note 11: Share-based compensation			1615
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			18
Note 12: Restructuring expenses			18
Item 3. Quantitative and Qualitative Disclosures About Market Risk			26
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			19
Item 4. Controls and Procedures			26
Item 3. Quantitative and Qualitative Disclosures About Market Risk			27
PART II - OTHER INFORMATION			27
Item 4. Controls and Procedures			27
Item 1. Legal Proceedings			27
PART II - OTHER INFORMATION			28
Item 1A. Risk Factors			27
Item 1. Legal Proceedings			28
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			27
Item 1A. Risk Factors			28
Item 6. Exhibits			28
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			28
SIGNATURES			29
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. As previously announced, our board of directors approved a change in our fiscal year end from July 31st to December 31st. The term “transition period” refers to the five-month period from August 1, 2025 to December 31, 2025 as the Company transitions from a July 31st fiscal year end to a December 31st fiscal year end. References to the “current quarter” refer to the three months in the transition period ended October 31, 2025. Prior to the transition period, our fiscal year was the year ending on July 31 of the corresponding calendar year. For example, references to “fiscal 2025” or similar references refer to the fiscal year ended July 31, 2025, and references to “the first quarter of fiscal 2025” refer to the quarter ended October 31, 2024. Our fiscal year 2026 will commence on January 1, 2026.

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 ~~the~~ 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 ~~Annual~~Transition Report ~~on Form 10-K for the fiscal year ended July 31, 2025 filed with the Securities~~ and ~~Exchange Commission (“SEC”) on September 26, 2025 (the “Annual 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
	October 31,
	March 31,
(In millions, except per share amounts)	~~2025~~2026	~~2024~~2025
Net sales	$87,~~169~~472	$7,~~772~~213
Cost of sales	(5,~~663~~154)	(54,~~432~~997)
Gross profit	2,~~506~~318	2,~~340~~216
Selling, general and administrative expenses	(1,~~641~~607)	(1,~~585~~565)
Depreciation and amortization	(94)	(90)
Restructuring expenses	(2)	(51)
Operating profit	771	665
Depreciation and amortization	(97)	(93)
Interest expense, net	(46)	(46)
Operating profit	612	507
Other (expense) income, net	(13)	5
Interest expense, net	(45)	(46)
Income before income taxes	712	624
Other (expense) income, net	(7)	8
Provision for income taxes	(142)	(154)
Income before income taxes	560	469
Net income	$570	$470
Provision for income taxes	(146)	(124)
Earnings per share - Basic	$2.91	$2.34
Net income	$414	$345
Earnings per share - Diluted	$2.90	$2.34
Earnings per share - Basic	$2.13	$1.74
Earnings per share - Diluted	$2.13	$1.73
Weighted average number of shares outstanding:
Basic	~~196~~194.26	~~200~~198.8
Diluted	~~196~~194.68	~~201~~199.30

See accompanying Notes to the Condensed Consolidated Financial Statements.

Ferguson Enterprises Inc.

Condensed Consolidated Statements of Comprehensive Income

(unaudited)

Three months ended

October 31,

March 31,

(In millions)

~~2025~~2026

~~2024~~2025

Net income

$~~570~~414

$~~470~~345

Other comprehensive (loss) income:

Foreign currency translation adjustments

(911)

~~(7)~~—

Pension adjustments, net of tax impacts of ($1) and ($2), respectively

Pension adjustments, net of tax impacts of ($1) and ($3), respectively

Total other comprehensive income (loss), net of tax

(7)

(2)

Total other comprehensive (loss) income, net of tax

(7)

Comprehensive income

$~~563~~407

$~~468~~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)	~~October~~March 31, ~~2025~~2026	~~July~~December 31, 2025
Assets
Cash and cash equivalents	$~~526~~820	$~~674~~557
Accounts receivable, less allowances of $24 and $24, respectively	3,807	3,964
Accounts receivable, less allowances of $24 and $25, respectively	3,669	3,312
Inventories	4,~~613~~676	4,~~492~~588
Prepaid and other current assets	~~1,025~~961	~~945~~1,031
Assets held for sale	5639	7148
Total current assets	10,~~027~~165	109,~~146~~536
Property, plant and equipment, net	1,~~886~~931	1,~~846~~911
Operating lease right-of-use assets	1,~~841~~893	1,~~763~~832
Deferred income taxes, net	~~136~~125	~~225~~165
Goodwill	2,~~464~~481	2,~~464~~470
Other intangible assets, net	~~704~~653	~~726~~685
Other non-current assets	~~636~~541	~~559~~553
Total assets	$17,~~694~~789	$17,~~729~~152
Liabilities and stockholders’ equity
Accounts payable	$3,~~468~~677	$3,~~577~~117
Short-term debt	—148	~~400~~148
Current portion of operating lease liabilities	~~461~~465	~~447~~455
Other current liabilities	1,~~397~~395	1,~~578~~392
Liabilities held for sale	13	2613
Total current liabilities	5,~~339~~698	65,~~028~~125
Long-term debt	43,~~124~~979	3,~~752~~978
Long-term portion of operating lease liabilities	1,~~434~~489	1,~~367~~436
Other long-term liabilities	~~741~~749	~~750~~756
Total liabilities	11,~~638~~915	11,~~897~~295
Stockholders’ equity:
Common stock, par value $0.0001; 500,000,000 shares authorized; 201,343,253 issued	—	—
Paid-in capital	~~990~~1,011	~~926~~996
Retained earnings	7,~~117~~403	67,~~776~~167
Treasury shares, 5,447,701 and 4,759,053 shares, respectively at cost	(1,073)	(899)
Treasury shares, 7,214,742 and 6,291,666 shares, respectively at cost	(1,501)	(1,274)
Accumulated other comprehensive loss	(~~978~~1,039)	(~~971~~1,032)
Total stockholders' equity	65,~~056~~874	5,~~832~~857
Total liabilities and stockholders' equity	$17,~~694~~789	$17,~~729~~152

See accompanying Notes to the Condensed Consolidated Financial Statements.

Ferguson Enterprises Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(unaudited)

	Three months ended
	October 31,
	March 31,
(In millions, except per share data)	~~2025~~2026	~~2024~~2025
Ordinary shares:
Balance at beginning of period	$—	$30
Treasury shares canceled	—	(4)
Ordinary shares canceled	—	(26)
Balance at end of period	—	—
Common stock:
Balance at beginning of period	$—	$—
Common stock issued	—	—
Balance at end of period	—	—
Paid-in capital:
Balance at beginning of period	~~926~~996	~~864~~908
Share-based compensation expense	6415	2010
Ordinary shares canceled	—	26
Balance at end of period	1,011	918
Balance at end of period	990	910
Retained earnings:
Balance at beginning of period	67,~~776~~167	95,~~589~~887
Treasury shares canceled	—	(3,932)
Net earnings	414	345
Net earnings	570	470
Cash dividends declared of $0.89 and $0.83, respectively	(173)	(165)
Cash dividends declared of $0.83 and $0.79, respectively	(163)	(158)
Shares issued under employee stock plans	—	(2)
Shares issued under employee stock plans	(66)	(80)
Other	(5)	—
Balance at end of period	7,~~117~~403	56,~~889~~065
Treasury shares:
Balance at beginning of period	(~~899~~1,274)	(~~3,936~~407)
Treasury shares canceled	—	3,936
Share repurchases	(227)	(204)
Share repurchases	(210)	(261)
Shares issued under employee share plans, net	—	1
Shares issued under employee share plans, net	36	50
Balance at end of period	(1,501)	(610)
Balance at end of period	(1,073)	(211)
Accumulated other comprehensive loss:
Balance at beginning of period	(~~971~~1,032)	(~~931~~955)
Total other comprehensive loss	(7)	(2)
Total other comprehensive (loss) income	(7)	5
Balance at end of period	(~~978~~1,039)	(~~933~~950)
Total stockholder's equity	$65,~~056~~874	$5,~~655~~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
	October 31,
	March 31,
	2025	2024
	2026	2025
Cash flows from operating activities:
Net income	$~~570~~414	$~~470~~345
Depreciation and amortization	9497	9093
Share-based compensation	6416	119
Changes in deferred income taxes	8738	(14)
Changes in inventories	(~~118~~92)	(~~203~~54)
Changes in receivables and other assets	49(275)	(4121)
Changes in accounts payable and other liabilities	~~(371)~~543	~~(169)~~656
Changes in income taxes payable	4629	~~158~~(51)
Other operating activities	92	~~(7)~~1
Net cash provided by operating activities	~~430~~772	~~345~~874
Cash flows from investing activities:
Purchase of businesses acquired, net of cash acquired	(2110)	(22150)
Capital expenditures	(~~118~~92)	(7773)
Other investing activities	78	—12
Net cash used in investing activities	(~~132~~94)	(99211)
Cash flows from financing activities:
Purchase of treasury shares	(~~208~~236)	(~~256~~207)
Repayments of debt	~~(1,475)~~—	(~~1,550~~775)
Proceeds from debt	~~1,447~~—	~~1,621~~475
Change in bank overdrafts	~~(2)~~—	4(119)
Cash dividends	(~~164~~174)	—(166)
Other financing activities	(463)	(3322)
Net cash used in financing activities	(~~448~~413)	(~~214~~814)
Change in cash, cash equivalents and restricted cash	~~(150)~~265	32(151)
Effects of exchange rate changes	(2)	~~(3)~~9
Cash, cash equivalents and restricted cash, beginning of period	~~707~~581	~~625~~773
Cash, cash equivalents and restricted cash, end of period	$~~555~~844	$~~654~~631
Supplemental Disclosures:
Cash paid for income taxes, net	$978	$—180
Cash paid for interest	7522	7419
Accrued capital expenditures	1112	76
Accrued dividends	~~163~~173	~~158~~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 ~~serving~~of ~~the~~essential water and air solutions, serving the specialized professional in the residential and non-residential North American construction ~~market~~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.~~ We sell through a common network of distribution centers, branches, counter service and ~~specialist~~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 ~~Annual~~Transition Report. The financial results for the interim period may not be indicative of the financial results for the entire ~~fiscal~~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)	~~October~~March 31, ~~2025~~2026	~~July~~December 31, 2025
Cash and cash equivalents	$~~526~~820	$~~674~~557
Restricted cash	2924	3324
Total cash, cash equivalents and restricted cash	$~~555~~844	$~~707~~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 $6364 million and $6249 million as of ~~October~~March 31, ~~2025~~2026 and ~~July~~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 December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This ASU provides qualitative and quantitative updates to the rate reconciliation and income taxes paid disclosures, among others, in order to enhance the transparency of income tax disclosures, including consistent categories and greater disaggregation of information in the rate reconciliation and disaggregation by jurisdiction of income taxes paid. The amendments in this ASU are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied prospectively; however, retrospective application is also permitted. The impact to the Company’s consolidated financial statements and related disclosures is not expected to be material.

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 ~~Annual~~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

October 31,

March 31,

(In millions)

~~2025~~2026

~~2024~~2025

Net sales:

United States

$7,~~757~~146

$76,~~369~~904

Canada

~~412~~326

~~403~~309

Total net sales

87,~~169~~472

7,~~772~~213

Cost of sales:

United States

(54,~~361~~915)

(54,~~136~~772)

Canada

(~~302~~239)

(~~296~~225)

Operating costs:

United States

(1,~~590~~575)

(1,~~536~~521)

Canada

(9482)

(8478)

Adjusted operating profit:

United States

~~806~~656

~~697~~611

Canada

165

236

Total segment adjusted operating profit

~~822~~661

~~720~~617

Central and other costs(1)

(14)

(1420)

Corporate restructuring expenses

(2)

(3)

Restructuring activities(2)

(2)

(51)

Amortization of acquired intangible assets

(3533)

(3839)

Interest expense, net

(4645)

(46)

Other (expense) income, net

(137)

Income before income taxes

$~~712~~560

$~~624~~469

(1)Primarily includes SG&A, ~~including depreciation expense on long lived assets and software amortization expense~~ 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

October 31,

March 31,

(In millions)

~~2025~~2026

~~2024~~2025

Capital expenditures:

United States

$~~114~~90

$7672

Canada

Total capital expenditures

$~~118~~92

$7773

Depreciation and amortization:

United States

$8992

$8589

Canada

Total depreciation and amortization(1)

$9497

$9093

(1) Includes amortization of acquired intangible assets of $35 million and $38 million in the three months ended October 31, 2025 and 2024, respectively. These amounts are not included in segment adjusted operating profit.

(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)	~~October~~March 31, ~~2025~~2026	~~July~~December 31, 2025
Assets:
United States	$15,~~914~~872	$15,~~757~~444
Canada	~~990~~929	~~1,008~~946
Total segment assets	16,~~904~~801	16,~~765~~390
Corporate	~~790~~988	~~964~~762
Total assets	$17,~~694~~789	$17,~~729~~152

Long-lived assets are as follows:

	As of
(In millions)	~~October~~March 31, ~~2025~~2026	~~July~~December 31, 2025
Long-lived assets:
United States	$1,~~836~~887	$1,~~795~~865
Canada	5044	5146
Total long-lived assets	$1,~~886~~931	$1,~~846~~911

Net sales disaggregation

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

	Three months ended
	October 31,
	March 31,
	2025		2024
	2026		2025
Customer Group
Waterworks	2523	%	2322	%
Ferguson Home	21	%	2122	%
Commercial/Mechanical	1516	%	1314	%
Residential Trade Plumbing	1415	%	16	%
HVAC	11	%	1311	%
Industrial	7	%	7	%
Facilities Supply	4	%	45	%
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

October 31,

March 31,

(In millions)

~~2025~~2026

~~2024~~2025

Weighted average number of shares outstanding:

Basic weighted average shares

~~196~~194.26

~~200~~198.8

Effect of dilutive shares(1)

0.42

0.52

Diluted weighted average shares

~~196~~194.68

~~201~~199.30

Excluded anti-dilutive shares

~~0.1~~—

0.21

(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
	October 31,
	March 31,
		2025		2024
		2026		2025
Effective tax rate		1926.91	%	2426.74	%

During the three months ended ~~October~~March 31, ~~2025~~2026, there were no material changes to the Company’s unrecognized tax benefits, ~~beyond the release of benefits following the lapse of statute of limitations,~~ when compared to those items disclosed in the ~~Annual~~Transition Report.

Note 5: Debt

The Company’s debt obligations consisted of the following:

	As of
(In millions)	~~October~~March 31, ~~2025~~2026	~~July~~December 31, 2025
Variable-rate debt:
Receivables Facility	$—	$375
Fixed-rate debt:
Private placement notes	300	~~700~~300
Unsecured senior notes, due April 2027 - October 2034	3,~~100~~850	3,~~100~~850
2031 Senior Notes, 4.35% due March 2031	750	—
Subtotal	$4,150	$4,150
Subtotal	$4,150	$4,175
Less: current maturities of debt	(148)	(148)
Less: current maturities of debt	—	(400)
Unamortized discounts and debt issuance costs	(21)	(22)
Unamortized discounts and debt issuance costs	(23)	(19)
Interest rate swap - fair value adjustment	(2)	(2)
Interest rate swap - fair value adjustment	(3)	(4)
Total long-term debt	$3,979	$3,978
Total long-term debt	$4,124	$3,752

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”). ~~The~~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 $~~915~~900 million, terminating on October 29, 2027. The Company ~~has~~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 ~~October~~March 31, ~~2025~~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 ~~October~~March 31, ~~2025~~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 ~~September~~November ~~2025~~2026, ~~the Company repaid~~ $~~400~~150 million ~~related~~of ~~to the 3.73%~~ private placement notes ~~that~~will ~~matured~~mature.

2031 Senior Notes

In September 2025, the Company issued and sold $750 million aggregate principal amount of unsecured senior notes, maturing in March 2031 (the “2031 Senior Notes”). The 2031 Senior Notes bear interest at a rate of 4.35%, payable semi-annually. The obligations of the Company under the 2031 Senior Notes are fully and unconditionally guaranteed by Ferguson UK Holdings Limited, an indirect subsidiary of the Company.

The 2031 Senior Notes may be redeemed, in whole or in part, (i) at 100% of the principal amount on the notes being redeemed plus a “make-whole” prepayment premium at any time prior to one month before the maturity date (the “Notes Par Call Date”) or (ii) after the Notes Par Call Date at 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest on the principal being redeemed. The 2031 Senior Notes include covenants, subject to certain exceptions, which include limitations on the granting of liens and on mergers and acquisitions.

Other

The Company was in compliance with all debt covenants that were in effect as of ~~October~~March 31, ~~2025~~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 ~~October~~March 31, ~~2025~~2026 and ~~July~~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 ~~October~~March 31, ~~2025~~2026 and ~~July~~December 31, 2025.

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

October 31, 2025

July 31, 2025

March 31, 2026

December 31, 2025

(In millions)

Carrying Amount

Fair Value

Carrying Amount

Fair Value

Unsecured senior notes

$3,~~827~~829

$3,~~829~~781

$3,~~081~~828

$3,~~033~~833

Private placement notes

300

~~300~~299

~~700~~300

~~698~~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 July 31, 2025	($463)	($508)	($971)
Balance at December 31, 2025	($456)	($576)	($1,032)
Other comprehensive (loss) income before reclassifications	(911)	~~(1)~~—	(1011)
Amounts reclassified from accumulated other comprehensive loss	—	34	34
Other comprehensive (loss) income	(911)	24	(7)
Balance at October 31, 2025	(472)	(506)	(978)
Balance at March 31, 2026	(467)	(572)	(1,039)

(In millions, net of tax)	Foreign currency translation	Pensions	Total
Balance at July 31, 2024	($461)	($470)	($931)
Balance at December 31, 2024	($491)	($464)	($955)
Other comprehensive (loss) before reclassifications	(7)	2	(5)
Other comprehensive income before reclassifications	—	2	2
Amounts reclassified from accumulated other comprehensive loss	—	3	3
Other comprehensive (loss) income	~~(7)~~—	5	~~(2)~~5
Balance at October 31, 2024	(468)	(465)	(933)
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
	October 31,
	March 31,
(In millions)	~~2025~~2026	~~2024~~2025
Amortization of actuarial losses	$45	$4
Tax benefit	(1)	(1)
Amounts reclassified from accumulated other comprehensive loss	$34	$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
	October 31,
	March 31,
(In millions)	~~2025~~2026	~~2024~~2025
Interest cost	($1718)	($1615)
Expected return on plan assets	1617	16
Amortization of net actuarial losses	(45)	(4)
Net periodic cost	($56)	($43)

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
	October 31,
	March 31,
	2025	2024
	2026	2025
Ordinary shares:
Balance at beginning of period	—	232,171,182
Treasury shares canceled	—	(30,827,929)
Ordinary shares canceled	—	(201,343,253)
Balance at end of period	—	—
Common stock:
Balance at beginning of period	201,343,253	—201,343,253
Common stock issued	—	~~201,343,253~~—
Balance at end of period	201,343,253	201,343,253
Treasury shares:
Balance at beginning of period	(46,~~759~~291,~~053~~666)	(302,~~827~~035,~~929~~323)
Treasury shares canceled	—	30,827,929
Share repurchases	(926,015)	(1,180,465)
Share repurchases	(901,308)	(1,310,163)
Treasury shares used to settle share-based compensation awards	2,939	7,452
Treasury shares used to settle share-based compensation awards	212,660	248,690
Balance at end of period	(7,214,742)	(3,208,336)
Balance at end of period	(5,447,701)	(1,061,473)
Total shares outstanding at end of period	194,128,511	198,134,917
Total shares outstanding at end of period	195,895,552	200,281,780

Share Repurchases

~~The~~As of March 31, 2026, the Company ishad ~~currently~~completed ~~purchasing~~$4.7 ~~shares~~billion in share repurchases under ana ~~authorization~~September 2021 program that ~~allows~~authorized up to $5.0 billion. inIn ~~share~~April ~~repurchases.~~2026, Asthe board of ~~October 31,~~directors ~~2025,~~authorized ~~the~~a ~~Company~~new ~~had~~share ~~completed~~repurchase program of up to $4.2 billion in ~~share~~aggregate ~~repurchases~~purchases ~~under~~of common stock, replacing the ~~authorized~~prior program.

~~Ordinary Shares and Treasury shares~~15

As of August 1, 2024, the Company canceled all ordinary shares in connection with its completion of the transaction to establish a new corporate structure to domicile our parent company in the United States. As a result, in the first quarter of fiscal 2025, 30,827,929 ordinary shares held in treasury were canceled, 201,343,253 of outstanding ordinary shares not held in treasury were canceled and 201,343,253 shares of common stock were issued as consideration therefor.

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 ~~fiscal~~October ~~2025~~2024 cliff vest, typically at the end of three years. RSU awards granted in ~~fiscal~~October ~~2025~~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:

•Single metric performance stock units (“PSU”) typically vest following three-year performance cycles. The number of shares issued will vary based upon the Company’s performance against an adjusted operating profit measure. The Company did not issue new PSUs in the current quarter.


	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

16The following table summarizes the share-based incentive awards activity for the three months ended March 31, 2026:

The following table summarizes the share-based incentive awards activity for the three months ended October 31, 2025:


	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

	Number of shares	Weighted average grant date fair value
Outstanding as of July 31, 2025	636,239	$159.58
RSU awards granted	95,641	234.31
PSU-EX granted	34,884	282.98
Share adjustments from modification(1)	193,618	224.13
Share adjustments based on performance	84,585	199.13
Vested	(338,550)	176.54
Forfeited	(7,652)	172.21
Outstanding as of October 31, 2025	698,765	$190.20

(1)In September 2025, the Company’s Compensation Committee used discretion to adjust the payout percentage for certain performance stock awards granted in fiscal 2023 that were not probable of vesting such that they became probable of vesting. This modification resulted in $43 million of share-based compensation expense and impacted approximately 530 grantees.

The following table relates to RSU, PSU and PSU-EX awards activity:

			Three months ended
			October 31,
(In millions, except per share amounts)			2025
Fair value of awards vested			$80
Weighted average grant date fair value per share granted			$247.32

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

Three months ended

October 31,

March 31,

(In millions)

~~2025~~2026

~~2024~~2025

Share-based compensation expense (within SG&A)

$6415

$119

Income tax benefit

164

Total unrecognized share-based compensation expense for all share-based payment plans was $96152 million at ~~October~~March 31, ~~2025~~2026, which is expected to be recognized over a weighted average period of 2.14 years.

Stock Options

InThe ~~October~~Company ~~2025,~~grants ~~the~~stock ~~Company~~option ~~granted~~awards ~~25,135~~to ~~stock~~certain ~~options~~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. As of October 31, 2025, the Company had 63,523 total stock options outstanding. The share-based compensation expense of stock options is not material.

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 ~~October~~March 31, ~~2025~~2026 and ~~2024~~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 ~~Annual~~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 ~~serving~~of ~~the~~essential water and air solutions, serving the specialized professional in the residential and non-residential North American construction ~~market~~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

October 31,

March 31,

(In millions, except per share amounts)

~~2025~~2026

~~2024~~2025

Net sales

$87,~~169~~472

$7,~~772~~213

Operating profit

~~771~~612

~~665~~507

Net income

~~570~~414

~~470~~345

Earnings per share - diluted

2.9013

21.3473

Net cash provided by operating activities

~~430~~772

~~345~~874

Supplemental non-GAAP financial measures:(1)

Adjusted operating profit

~~808~~647

~~706~~597

Adjusted earnings per share - diluted

2.8428

2.4509

(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 ~~three~~first ~~months~~quarter ~~ended~~of ~~October 31~~2026, ~~2025,~~ net sales increased by 53.16% compared with the first quarter of ~~fiscal~~ 2025, primarily due to price inflation, and incremental sales from acquisitions ~~and higher sales volume~~, partially offset by ~~the~~lower ~~impact of foreign exchange rates and an immaterial divestment in Canada~~volume.

For the ~~current~~first quarter of 2026, operating profit increased by 1520.97% (adjusted operating profit increased 148.4%), compared with the first quarter of ~~fiscal~~ 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 ~~current~~first quarter of 2026, diluted earnings per share was $2.9013 (adjusted diluted earnings per share: $2.8428), increasing 23.91% (~~15.~~9.1% on an adjusted basis) compared with the first quarter of ~~fiscal~~ 2025 due to higher net income and the impact of share repurchases.

Net cash provided by operating activities ~~increased~~decreased to $~~430~~772 million in the ~~current~~first quarter of 2026 compared with $~~345~~874 million in the first quarter of ~~fiscal~~ 2025, primarily reflecting an increased investment in working capital, partially offset by higher net income after adjusting for non-cash items.

1819

Results of Operations

	Three months ended
	October 31,
	March 31,
(In millions)	~~2025~~2026	~~2024~~2025
Net sales	$87,~~169~~472	$7,~~772~~213
Cost of sales	(5,~~663~~154)	(54,~~432~~997)
Gross profit	2,~~506~~318	2,~~340~~216
Selling, general and administrative expenses	(1,~~641~~607)	(1,~~585~~565)
Depreciation and amortization	(94)	(90)
Restructuring expenses	(2)	(51)
Operating profit	771	665
Depreciation and amortization	(97)	(93)
Interest expense, net	(46)	(46)
Operating profit	612	507
Other (expense) income, net	(13)	5
Interest expense, net	(45)	(46)
Income before income taxes	712	624
Other (expense) income, net	(7)	8
Provision for income taxes	(142)	(154)
Income before income taxes	560	469
Net income	$570	$470
Provision for income taxes	(146)	(124)
Net income	$414	$345

Net sales

For the ~~three~~first ~~months~~quarter ~~ended~~of ~~October 31~~2026, ~~2025,~~ net sales were $87.25 billion, an increase of $0.43 billion, or 53.16%, compared with the first quarter of ~~fiscal~~ 2025. The increase in net sales was primarily driven by mid-single digit price inflation ofand ~~approximately 3%,~~ incremental sales from acquisitions of 1.0.8% ~~and higher sales volume~~, partially offset by ~~0.1%~~lower ~~from~~sales ~~the combined impacts of foreign exchange rates and an immaterial divestment in Canada~~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 ~~current~~first quarter of 2026 increased $~~166~~102 million, or 74.16%, compared with the first quarter of ~~fiscal~~ 2025, primarily reflecting increased net sales. Gross profit as a percentage of sales was 3031.70% in the ~~current~~first quarter of 2026 compared with 30.17% in the first quarter of ~~fiscal~~ 2025. The increase of 0.63% primarily reflected ~~specific~~solid ~~management~~execution ~~actions~~across ~~to better capture~~ the ~~value provided to customers~~business.

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

SG&A expenses in the ~~current~~first quarter of 2026 increased $5642 million, or 32.57%, compared with the first quarter of ~~fiscal~~ 2025. SG&A as a percentage of sales was 2021.15% in the ~~current~~first quarter of 2026 compared with 2021.47% in the first quarter of ~~fiscal~~ 2025. The decrease in SG&A as a ~~percent~~percentage of sales primarily reflects improved productivity and operating leverage of the Company’s cost base~~, partially offset by the impact of performance driven variable incentive costs~~.

Income tax

Income tax expense was $~~142~~146 million in the ~~current~~first quarter of 2026, aan ~~decrease~~increase of $1222 million, or 717.87%, compared with the first quarter of ~~fiscal~~ 2025 due to higher income before income taxes. The Company’s effective tax rate ~~was~~of 1926.91% in the ~~current~~first quarter ~~compared~~of 2026 was generally in-line with 2426.74% for the first quarter of 2025. These decreases were mainly related to the release of uncertain tax positions due to the lapsing of the statute of limitations offset by the tax impact of increased income before income taxes in the current fiscal period.

Net income

Net income was $~~570~~414 million in the ~~current~~first quarter of 2026, an increase of $~~100~~69 million, or 2120.30%, compared with the first quarter of ~~fiscal~~ 2025, primarily due to the various elements described in the sections above.

1920

Segment results

United States

Three months ended

October 31,

March 31,

(In millions)

~~2025~~2026

~~2024~~2025

Net sales

$7,~~757~~146

$76,~~369~~904

Adjusted operating profit

~~806~~656

~~697~~611

Net sales for the United States segment were $7.81 billion in the ~~current~~first quarter of 2026, an increase of $~~388~~242 million, or 5.3.5%, compared with the first quarter of ~~fiscal~~ 2025. The increase in net sales was ~~due~~primarily todriven ~~price~~by ~~inflation~~mid-single ofdigit ~~approximately~~price ~~3%,~~inflation and incremental sales from acquisitions of 0.96%, ~~and~~partially ~~higher~~offset by lower sales volume. Net sales in non-residential markets, representing approximately half of revenue in the United States, increased approximately 128% compared with the first quarter of ~~fiscal~~ 2025. This increase was driven by ~~waterworks and~~ commercial/mechanical, industrial and waterworks, including large capital project activity. Net sales in residential markets decreased approximately 1% compared with the first quarter of ~~fiscal~~ 2025 in light of weak ~~housing~~new ~~starts~~construction ~~and permit~~ activity, along with soft repair, maintenance and improvement (“RMI”) work.

Adjusted operating profit for the United States segment was $~~806~~656 million in the ~~current~~first quarter of 2026, an increase of $~~109~~45 million, or 157.64%, compared with the first quarter of ~~fiscal~~ 2025, primarily reflecting higher sales and the associated gross profit, partially offset by higher variable operating costs.

Canada

Three months ended

October 31,

March 31,

(In millions)

~~2025~~2026

~~2024~~2025

Net sales

$~~412~~326

$~~403~~309

Adjusted operating profit

165

236

Net sales for the Canada segment were $~~412~~326 million in the ~~current~~first quarter of 2026, an increase of $917 million, or 25.25%, compared with the first quarter of ~~fiscal~~ 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 ~~price~~low ~~inflation~~to ofmid-single ~~approximately~~digit 4%price inflation. These increases were partially offset by lower volume, ~~the impact of foreign currency exchange rates of 1.6%~~ and the impact of a non-core business ~~divestment~~divestments of 14.56%.

Adjusted operating profit for the Canada segment decreased by $71 million in the first quarter of 2026, compared with the first quarter of ~~fiscal~~ 2025 due to higher operating costs, partially offset by higher gross profit.

2021

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
	October 31,
	March 31,
(In millions)	~~2025~~2026	~~2024~~2025
Net income	$~~570~~414	$~~470~~345
Provision for income taxes	~~142~~146	~~154~~124
Interest expense, net	4645	46
Other (income) expense, net	13	(5)
Other expense (income), net	7	(8)
Operating profit	~~771~~612	~~665~~507
Corporate restructuring expenses(1)	2	3—
Amortization of acquired intangibles	35	38
Business restructuring expenses(2)	—	51
Adjusted operating profit	$808	$706
Amortization of acquired intangibles	33	39
Adjusted operating profit	$647	$597

(1)For the three months ended ~~October~~March 31, ~~2025 and 2024~~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.

21(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
	October 31,
	March 31,
(In millions, except per share amounts)	~~2025~~2026		~~2024~~2025
		per share(1)		per share(1)
Net income	$~~570~~414	$2.9013	$~~470~~345	$21.3473
Corporate restructuring expenses(2)	2	0.01	3—	~~0.01~~—
Amortization of acquired intangibles	35	0.18	38	0.19
Business restructuring expenses(3)	—	—	51	0.26
Discrete tax adjustments(3)	(39)	(0.20)	(7)	(0.04)
Amortization of acquired intangibles	33	0.17	39	0.20
Tax impact on non-GAAP adjustments(4)	(9)	(0.05)	(10)	(0.05)
Discrete tax adjustments(4)	4	0.02	3	0.02
Adjusted net income	$559	$2.84	$494	$2.45
Tax impact on non-GAAP adjustments(5)	(9)	(0.05)	(23)	(0.12)
Diluted weighted average shares outstanding	196.6		201.3
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 ~~October~~March 31, ~~2025 and 2024~~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 ~~October~~March 31, 2025, ~~discrete~~business ~~tax~~restructuring ~~adjustments~~expenses ~~mainly~~primarily related to the ~~release~~Company’s ofimplementation ~~uncertain tax positions following the lapse~~ of ~~statute~~targeted ofactions ~~limitations~~to ~~and~~streamline ~~tax treatment of certain compensation items that are not material. For the three months ended October 31~~operations, ~~2024,~~enhancing ~~discrete~~speed ~~tax~~and ~~adjustments~~efficiency ~~mainly related~~ to ~~the~~better ~~tax~~serve ~~treatment~~customers ofand ~~certain~~drive ~~compensation~~further ~~items~~profitable ~~that are not material~~growth.

(4)For the three months ended ~~October~~March 31, ~~2025~~2026 and ~~2024~~2025, ~~the~~discrete tax ~~impact on non-GAAP~~ adjustments ~~primarily~~were mainly related to ~~the~~interest ~~amortization~~on ofuncertain ~~acquired~~tax ~~intangibles~~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 ~~acquisitions,~~ capital expenditures, acquisitions, dividend payments, share repurchases, required debt payments and other contractual obligations through the next several ~~fiscal~~ 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, ~~required pension obligations~~ and other purchase obligations. The nature and composition of such existing cash requirements have not materially changed from those disclosed in the ~~Annual~~Transition Report other than items updated in this Quarterly Report.

Cash flows

As of ~~October~~March 31, ~~2025~~2026 and ~~July~~December 31, 2025, the Company had cash and cash equivalents of $~~526~~820 million and $~~674~~557 million, respectively. In addition to cash, the Company had $2.4 billion of available liquidity from undrawn debt facilities as of ~~October~~March 31, ~~2025~~2026.

As of ~~October~~March 31, ~~2025~~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.

2223

Cash flows from operating activities

	Three months ended
	October 31,
	March 31,
(In millions)	~~2025~~2026	~~2024~~2025
Net cash provided by operating activities	$~~430~~772	$~~345~~874

Net cash provided by operating activities was $~~430~~772 million and $~~345~~874 million for the three months ended ~~October~~ March 31, ~~2025~~2026 and ~~2024~~2025, respectively. The $85102 million ~~increase~~decrease was mainly due to ~~higher~~an ~~net~~increased ~~income~~investment ~~(adjusted~~in ~~for~~working ~~non-cash~~capital ~~items)~~compared with the prior year, partially offset by ~~the~~higher net ~~increase~~income in(adjusted ~~working~~for ~~capital~~non-cash ~~compared~~items) ~~with~~and ~~the~~lower ~~prior~~cash ~~year~~tax payments due to timing. The increase in working capital was primarily driven by aan ~~decrease~~increase in ~~payables~~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, ~~partially~~and ~~offset~~the bychange ~~lower inventory purchases~~ in ~~order~~timing toof ~~appropriately~~cash ~~manage~~incentive ~~customer~~payouts ~~demand,~~in ~~along~~light ~~with~~of ~~lower~~the ~~receivables~~Company’s ~~due~~change to ~~the~~a ~~timing~~calendar ~~of collections~~ year-~~over-year~~end.

Cash flows from investing activities

	Three months ended
	October 31,
	March 31,
(In millions)	~~2025~~2026	~~2024~~2025
Net cash used in investing activities	($~~132~~94)	($99211)

Capital expenditures totaled $~~118~~92 million and $7773 million for the three months ended ~~October~~ March 31, ~~2025~~2026 and ~~2024~~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 $2110 million and $22150 million in new acquisitions for the three months ended ~~October~~ March 31, ~~2025~~2026 and ~~2024~~2025, respectively.

Cash flows from financing activities

	Three months ended
	October 31,
	March 31,
(In millions)	~~2025~~2026	~~2024~~2025
Net cash used in financing activities	($~~448~~413)	($~~214~~814)

Dividends paid to shareholders were $~~164~~174 million and $166 million for the three months ended ~~October~~ March 31, ~~2025.~~2026 ~~The~~and ~~Company generally pays dividends in the fiscal quarter following the fiscal quarter in which the dividend was declared. However~~2025, the dividends declared in the fourth quarter of fiscal 2024 were also paid in the fourth quarter of fiscal 2024 in connection with the transaction to establish a new corporate structure to domicile our parent company in the United Statesrespectively. ~~As such, no dividends were paid in the first quarter of fiscal 2025.~~

Share repurchases under the Company’s ~~announced~~September 2021 share repurchase program were $~~208~~236 million and $~~256~~207 million for the three months ended ~~October~~ March 31, ~~2025~~2026 and ~~2024~~2025, respectively.

Net payments from debt transactions were $28300 million ~~compared with net proceeds of $71 million~~ for the three months ended ~~October~~March 31, 2025 ~~and~~due ~~2024,~~to respectively. In the current quarter, the Company received $747 million from the issuance of the 2031 Senior Notes (as defined below). These proceeds were partially offset by debt repayments of $400 million in connection with the maturity of certain Private Placement Notes and net repayments ~~of $375 million~~ under the ~~Company’s~~ Receivables Facility ~~(each, as defined below)~~. InThe ~~the~~Company ~~first~~did ~~quarter~~not ofhave ~~fiscal~~any ~~2025,~~debt ~~the~~transactions ~~Company received $746 million~~ in ~~net proceeds from~~ the ~~issuance~~first ofquarter ~~2034 Senior Notes, partially offset by the repayment~~ of ~~the Company’s $500 million Term Loans and $175 million in net repayments under the Receivables Facility~~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)	~~October~~March 31, ~~2025~~2026	~~July~~December 31, 2025
Short-term debt	$—148	$~~400~~148
Long-term debt	43,~~124~~979	3,~~752~~978
Total debt	$4,~~124~~127	$4,~~152~~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 ~~October~~March 31, ~~2025~~2026, $300 million in Private Placement Notes remain outstanding.

In ~~September~~November ~~2025~~2026, ~~the Company repaid~~ $~~400~~150 million ~~related~~of ~~to the 3.73%~~ private placement notes ~~that~~will ~~matured~~mature.

Unsecured Senior Notes

The Company has issued $3.985 billion in various issuances of unsecured senior notes (collectively, the “Unsecured Senior Notes”), including the September 2025 issuance of $750 million aggregate principal amount of unsecured senior notes due March 2031 (the “2031 Senior Notes”).

Receivables Securitization Facility

The Company maintains a Receivables Securitization Facility with an aggregate total available amount of $~~915~~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 ~~October~~March 31, ~~2025~~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 ~~October~~March 31, ~~2025~~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 ~~October~~March 31, ~~2025~~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 ~~Annual~~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 ~~October~~ March 31, ~~2025~~2026.

2425

Guarantor Disclosures

Ferguson Enterprises Inc. (the “Issuer”) is the issuer of the ~~2031~~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 ~~Annual~~Transition Report.

As of

(In millions)

~~October~~March 31, ~~2025~~2026

~~July~~December 31, 2025

Current assets

$3544

$~~284~~46

Non-current assets

832

252

Current liabilities

~~197~~203

~~201~~214

Non-current liabilities

1,~~485~~503

~~740~~1,500

Due from non-guarantor subsidiaries

158

9,283

Due (to)/from non-guarantor subsidiaries, net

(51)

370

Three months ended

October 31,

March 31,

(In millions)

~~2025~~2026

Net sales

$—

Gross profit

—

Operating loss

(1312)

Net loss

(3137)

Other interest income, net from non-guarantor subsidiaries

~~156~~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 ~~Annual~~Transition Report.

2526

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 ~~Annual~~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 ~~October~~March 31, ~~2025~~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 ~~October~~March 31, ~~2025~~2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

2627

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 ~~Annual~~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 ~~current~~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)
August 1 -August 31, 2025	252,337	$228.31	252,337	$912
January 1- January 31, 2026	350,471	$241.22	350,471	$475
September 1 -September 30, 2025	265,255	$224.72	265,255	$852
February 1 - February 28, 2026	294,531	$259.55	294,531	$399
October 1 -October 31, 2025	383,716	$238.53	383,716	$761
March 1 - March 31, 2026	281,013	$227.93	281,013	$335
	901,308		901,308
	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 ~~October~~March 31, ~~2025~~2026, the Company had completed $4.27 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.

27Item 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 to Receivables Purchase Agreement and Purchase and Contribution Agreement, dated November 10, 2025, 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.
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.
10.2+						Form of Restricted Stock Unit Award Agreement pursuant to the Ferguson Enterprises Inc. 2023 Omnibus Equity Incentive Plan, approved by the Compensation Committee September 10, 2025 (incorporated by reference to Exhibit 10.56 of the Annual Report on Form 10-K (File No. 001-42200) filed by Ferguson Enterprises Inc. with the SEC on September 26, 2025).
10.3+						Form of Performance Award Unit Agreement pursuant to the Ferguson Enterprises Inc. 2023 Omnibus Equity Incentive Plan, approved by the Compensation Committee September 10, 2025 (incorporated by reference to Exhibit 10.57 of the Annual Report on Form 10-K (File No. 001-42200) filed by Ferguson Enterprises Inc. with the SEC on September 26, 2025).
10.4+						Form of Stock Option Agreement pursuant to the Ferguson Enterprises Inc. 2023 Omnibus Equity Incentive Plan, approved by the Compensation Committee September 10, 2025 (incorporated by reference to Exhibit 10.58 of the Annual Report on Form 10-K (File No. 001-42200) filed by Ferguson Enterprises Inc. with the SEC on September 26, 2025).
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

+† ~~Indicates~~Certain aportions ~~management~~of ~~contract~~this orexhibit ~~compensatory~~(indicated ~~plan~~by or“[***]”) ~~arrangement~~have been omitted pursuant to Item 601(b)(10) of Regulation S-K.

The Registrant agrees to furnish to the SEC, upon request, copies of any instruments that define the rights of holders of long-term debt of the Registrant that are not filed as Exhibits to this Quarterly Report.29

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.

~~December~~May 95, ~~2025~~2026


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

2930

Filing Compare · Ferguson Enterprises Inc. /DE/