In Q1 of its 2025 fiscal year, plumbing and HVAC distributor Ferguson Enterprises Inc. faced a challenging market environment, navigating soft economic conditions to post modest gains.

For the quarter ending Oct. 31, United Kingdom-based Ferguson reported total revenue of $7.772 billion. That’s a slight increase of 1% compared to $7.708 billion in the same period last year. Net income, however, declined to $470 million from $519 million a year earlier.

Ferguson generates approximately 95% of its revenue in the U.S.

Ferguson digital sales in Q1

Digital sales played a growing role in Ferguson’s U.S. operations, contributing $515.8 million. That’s 7% of the total U.S. revenue of $7.369 billion. Despite this, the residential digital commerce segment saw an 8% year-over-year decline due to weaker consumer demand.

“Residential digital commerce declined by 8% as consumer demand remained weak,” CEO Kevin Murphy said during the company’s earnings call.

Despite the ecommerce slowdown, Ferguson is doubling down on investments in digital tools and value-added solutions, though specific initiatives were not disclosed. Murphy emphasized the company’s focus on driving efficiencies and supporting customers amid challenging macroeconomic conditions.

“By enhancing our value-added solutions and digital tools, we’re creating efficiencies, reducing costs, and improving quality to deliver real benefits for our customers,” Murphy noted. “This is especially critical given current pressures on the trade labor force.”

While the company faces headwinds in the residential sector, its commitment to innovation and efficiency positions it to navigate the tough economic climate.

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