Ferguson prices $750 million senior notes offering due 2031

Published 18/09/2025, 22:18
Ferguson prices $750 million senior notes offering due 2031

NEWPORT NEWS - Ferguson Enterprises Inc. (NYSE:FERG; LSE:FERG), a $45.12 billion market cap distributor, announced Thursday it has priced a public offering of $750 million in aggregate principal amount of 4.350% senior unsecured notes due 2031. The company maintains a healthy financial position with a current ratio of 1.68, indicating strong liquidity.

The notes will be fully and unconditionally guaranteed by Ferguson UK Holdings Limited, an indirect subsidiary of Ferguson. The company expects the offering to close on September 22, 2025, subject to customary closing conditions.

Ferguson plans to use the net proceeds from the sale for general corporate purposes, which may include repayment of existing debt. J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc. and Barclays Capital Inc. are serving as joint book-running managers for the offering.

The offering is being made pursuant to an effective shelf registration statement filed with the U.S. Securities and Exchange Commission.

Ferguson, headquartered in Newport News, Virginia, is a distributor serving water and air professionals in the North American construction market. The company reported sales of $30.8 billion for fiscal year 2025 and employs approximately 35,000 associates across more than 1,700 locations. InvestingPro analysis reveals the company’s strong market position, with additional insights available in the comprehensive Pro Research Report, which provides detailed analysis of Ferguson’s financial health and market position.

This information is based on a press release statement issued by Ferguson.

In other recent news, Ferguson Plc reported its fourth-quarter earnings for 2025, exceeding expectations with earnings per share (EPS) of $3.48 against a forecast of $3.29. Despite this positive earnings surprise, the company’s revenue fell short of expectations, recording $8.5 billion compared to the anticipated $8.67 billion. Analysts have responded to these results with a series of price target adjustments. RBC Capital raised its price target to $243, maintaining an Outperform rating, highlighting Ferguson’s ability to surpass expectations despite weaker market demand. Wells Fargo also increased its price target to $275, emphasizing the company’s robust business model and potential for market share gains. Truist Securities adjusted its target to $260, noting significant growth in the non-residential segment. Meanwhile, UBS set a price target of $225, maintaining a Neutral rating, and revised its future earnings estimates downward due to more conservative margin expectations. These developments reflect the investment community’s varied outlook on Ferguson’s performance and future prospects.

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