Ferguson Enterprises Inc. /DE/FERG
Ferguson Enterprises Inc. /DE/ Segments Disclosure
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 which are also operating 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. 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:
| For the years ended July 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Net sales: | |||||||||||||||||
| United States | $29,269 | $28,195 | $28,291 | ||||||||||||||
| Canada | 1,493 | 1,440 | 1,443 | ||||||||||||||
| Total net sales | $30,762 | $29,635 | $29,734 | ||||||||||||||
| Cost of sales: | |||||||||||||||||
| United States | (20,238) | (19,528) | (19,650) | ||||||||||||||
| Canada | (1,089) | (1,054) | (1,059) | ||||||||||||||
| Operating costs: | |||||||||||||||||
| United States | (6,191) | (5,847) | (5,749) | ||||||||||||||
| Canada | (338) | (326) | (308) | ||||||||||||||
| Adjusted operating profit: | |||||||||||||||||
| United States | 2,840 | 2,820 | 2,892 | ||||||||||||||
| Canada | 66 | 60 | 76 | ||||||||||||||
| Total segment adjusted operating profit | 2,906 | 2,880 | 2,968 | ||||||||||||||
Central and other costs(1) | (64) | (56) | (51) | ||||||||||||||
Restructuring and impairment expenses(2) | (80) | (28) | (125) | ||||||||||||||
| Amortization of acquired intangible assets | (156) | (144) | (133) | ||||||||||||||
| Interest expense, net | (190) | (179) | (184) | ||||||||||||||
| Other expense, net | 7 | (9) | (11) | ||||||||||||||
| Income before income taxes | $2,423 | $2,464 | $2,464 | ||||||||||||||
(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 18, Restructuring and impairment expenses for further information.
Capital expenditures and depreciation and amortization by segment were as follows:
| For the years ended July 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Capital expenditures: | |||||||||||||||||
| United States | $300 | $353 | $423 | ||||||||||||||
| Canada | 5 | 19 | 18 | ||||||||||||||
| Total capital expenditures | $305 | $372 | $441 | ||||||||||||||
| Depreciation and amortization: | |||||||||||||||||
| United States | $356 | $323 | $313 | ||||||||||||||
| Canada | 17 | 12 | 8 | ||||||||||||||
Total depreciation and amortization(1) | $373 | $335 | $321 | ||||||||||||||
(1) Includes amortization of acquired intangible assets of $156 million, $144 million and $133 million in 2025, 2024 and 2023, respectively. These amounts are not included in segment adjusted operating profit. | |||||||||||||||||
Assets by segment included:
| As of July 31, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| Assets: | |||||||||||
| United States | $15,757 | $14,795 | |||||||||
| Canada | 1,008 | 898 | |||||||||
| Total segment assets | 16,765 | 15,693 | |||||||||
| Corporate | 964 | 879 | |||||||||
| Total assets | $17,729 | $16,572 | |||||||||
Long-lived assets are as follows:
| As of July 31, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| Long-lived assets: | |||||||||||
| United States | $1,795 | $1,699 | |||||||||
| Canada | 51 | 53 | |||||||||
| Total long-lived assets | $1,846 | $1,752 | |||||||||
Net sales disaggregation
A disaggregation of net sales by end market is as follows:
| For the years ended July 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| United States: | |||||||||||||||||
| Residential | $14,598 | $14,464 | $14,820 | ||||||||||||||
| Non-residential: | |||||||||||||||||
| Commercial | 10,088 | 9,431 | 9,213 | ||||||||||||||
| Civil/Infrastructure | 2,609 | 2,396 | 2,344 | ||||||||||||||
| Industrial | 1,974 | 1,904 | 1,914 | ||||||||||||||
| Total Non-residential | 14,671 | 13,731 | 13,471 | ||||||||||||||
| Total United States | 29,269 | 28,195 | 28,291 | ||||||||||||||
| Canada | 1,493 | 1,440 | 1,443 | ||||||||||||||
| Total net sales | $30,762 | $29,635 | $29,734 | ||||||||||||||
No sales to an individual customer accounted for more than 10% of net sales during any of the last three fiscal years.
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.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Sep 26, 2025 | Showing above |
| 2024 | Sep 25, 2024 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.