Ferguson Enterprises Inc.

**Fourth Quarter Performance**: Ferguson reported sales of $7.9 billion for Q4, a modest increase of 1.4% year-over-year despite a 2% overall deflation. Adjusted operating profit was $857 million, reflecting a 5.3% increase, and diluted earnings per share rose by 7.6% to $2.98, showing resilience in their financial performance even amidst challenging market conditions.

**Full Year Results and Guidance**: For the fiscal year 2024, total revenue was $29.6 billion, flat compared to the prior year, with a 1.5% decline in adjusted diluted EPS to $9.69. Looking ahead, the company expects low single-digit revenue growth for fiscal 2025, assuming a continued challenging market environment with ongoing deflation primarily affecting pricing and overall revenue.

**Market Conditions and Challenges**: The company expects residential markets to decline by approximately 4% due to weak new construction and repair/maintenance activity, while non-residential markets are anticipated to remain flat. Key indicators, such as the AIA’s Architectural Billing Index (ABI), suggest ongoing pressure, leading to cautious sentiments from customers and potential slowing in demand within traditional commercial segments.