Ferguson Enterprises is pressing its advantage in big nonresidential construction, especially data centers and other large capital projects—while positioning water and wastewater upgrades as a long-running source of demand, even as housing-related work remains sluggish.
“Our associates delivered a strong year, continuing to provide essential water and air solutions for our customers,” CEO Kevin Murphy said in the company’s results announcement.
Ferguson said 2025 sales rose 5.0% to $31.3 billion. Net income increased to $2.006 billion, up from $1.651 billion a year earlier, an increase of about 21.5%.
In the fourth quarter ended Dec. 31, the company reported sales of $7.5 billion, up 3.6%, and net income of $389 million, up from $356 million—an increase of about 9.3%.
Ferguson’s message to investors wasn’t just “we sold more.” It was that the company is increasingly winning work by helping contractors finish complex jobs faster that matters in a construction market strained by labor shortages and tighter schedules.
“In a trade-starved world, our customers don’t just need product. They need productivity,” Murphy said on the earnings call.
That theme runs through Ferguson’s strategy update, which highlights expanded capabilities such as project planning support, prefabrication and fabrication services, and specialized technical work used heavily on large jobs.
Ferguson pointed to the U.S. build-out of large capital projects as a multiyear runway, citing more than 4,000 planned projects through 2031 and about $6 trillion in projected spending. It said the slice of that activity relevant to its product and service mix represents about a $90 billion opportunity.
To make the point tangible, Ferguson highlighted a large data center job and described what it is supplying and coordinating: 5,700 liquid-cooling assemblies, 57,000 valves, 12 miles of copper pipe, and more than 19 miles of water and fire lines. The company said it has generated more than $40 million in revenue so far and has more than $100 million in open orders on that project.
Management also told analysts that this kind of work changes the competitive dynamic because contractors increasingly need off-site assembly, specialized automation, and dependable coordination—areas where Ferguson says its scale and technical capabilities can matter.
Ferguson also framed water infrastructure as one of its most durable growth drivers, pointing to aging systems and the need for upgrades across transmission, treatment, and storm water management.
On the call, Murphy described a more diversified waterworks business than in prior cycles, extending beyond new housing into municipal work, public works, and treatment-related projects, including equipment used inside water and wastewater facilities.
Ferguson said housing conditions remained uneven, with softer demand in residential construction and repair-and-remodel work. In the fourth quarter, it reported residential revenue was down 2% while nonresidential revenue rose 10%, supported by waterworks and commercial/mechanical activity tied to large projects.
Looking to 2026, Ferguson forecast low- to mid-single-digit sales growth, describing its end markets as mixed—residential weaker, nonresidential stronger.
Do not miss any content from Distribution Strategy Group. Join our list.
