Ferguson Enterprises Inc Q1 2026 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Matthew Bouley - Barclays Services Corp - Analyst : Wanted to start on the data center and large capital projects. I'm wondering if at this point, given all the growth you've seen, you're able to quantify, perhaps what portion of the business that is for you today, and maybe kind of where that can get to. But also, I'm curious if you can kind of, I don't know, give us a little bit of color on the timing of bidding and the momentum and if there's any risk of kind of lumpiness given how those projects work and how you shift to them or if we should kind of think that this is going to be more of a I don't know smoother kind of outlook for that business. Thank you.

Question: Matthew Bouley - Barclays Services Corp - Analyst : Alright, that's perfect. Thanks for that, guys. And then, secondly, kind of jumping into the outlook, I guess, maybe this is since a bit of an unusual period here where you're guiding to just kind of the sub period. I guess I'm curious if you kind of give us any color on the November or quarter-to-date results. But just given this is sort of a smaller and again an unusual guidance outlook here. If you're willing to kind of give any early 2026 thoughts across the end markets kind of carry over inflation, et cetera sort of help us point us direction a little bit into next year.

Question: Matthew Bouley - Barclays Services Corp - Analyst : Excellent. Thanks, Bill. Good luck, guys.

Question: David Manthey - Robert W. Baird & Co Inc - Analyst : Along the lines of the pricing discussion here with price looking like it's going to represent a pretty positive factor year over year through the coming calendar year against what appears to be pretty easy deflation affected comps last year. Should we continue to expect incremental margins to run ahead of that targeted 11% to 13% rate given the contribution from positive pricing over the course of the next four quarters?

Question: David Manthey - Robert W. Baird & Co Inc - Analyst : Makes sense. Thank you. And second, as it relates to the $2 billion-ish in revenues from major projects that you discussed, it seems like you've been having a lot of success there because of the one Ferguson effort. Could you, maybe I don't know if you could quantify or bigger than a breadbasket, tell us what percentage of those projects do you get more than one product and customer group via the one Ferguson effort versus not? Is that something you could share with us?

Question: Scott Schneeberger - Oppenheimer & Co Inc - Analyst : I want to touch on some SG&A topics. Last fiscal year, we made investments in trainees, HVAC counter expansion, large project teams. Just could I get an update on how these investments have been trending, what you're looking for maybe going out over the coming year and impacts of these investments to date. Thanks.

Question: Scott Schneeberger - Oppenheimer & Co Inc - Analyst : Great, thanks guys. And just to follow-up. You spoke a little bit earlier, you were asked about the supplier pricing going into next year. I'm just curious at that from a high level, how are you thinking about managing inventory as you enter 2026? Thanks. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 1:30PM, FERG.N - Q1 2026 Ferguson Enterprises Inc Earnings Call

Question: Nigel Coe - Wolfe Research LLC - Analyst : So you gave a bit of cover on the calendar fourth quarter. I missed any gross margin commentary just wondering if there's any sense on how that's been trending Q2 date.

Question: Nigel Coe - Wolfe Research LLC - Analyst : Great. And then a lot of helpful commentary on the larger project side. In terms of, I know this would probably be in quite a range, but any sense on what Ferguson's opportunity would be on a typical large project? Again, I know there's no typical large project but any sense on what the kind of content might be for Ferguson.

Question: Nigel Coe - Wolfe Research LLC - Analyst : Right, very helpful. Thank you.