Ferguson announced its Q4 earnings and FY 2022 results, its first as a U.S. listed company. 

Key highlights of the results include:

• Ferguson’s consistent financial performance driven by continued market share gains and its ability to appropriately manage and pass through price inflation;
• Ongoing cost control, which ensured a robust profit performance including profit growth of 44.6% for the year; and
• Its strong balance sheet, which enables Ferguson to continue to invest for organic growth (leading to sales growth of 25.3%), consolidate its fragmented markets through acquisitions (including seventeen acquisitions this year) and return capital to shareholders.

And in the fourth quarter:

• Strong sales growth of 21.4%, with core strengths driving market share gains;
• Operating profit growth of 23.1% driven by strong sales and operating cost leverage;
• Operating margin of 10.7% on an adjusted basis;
• Seven acquisitions in the quarter with annualized revenues of approximately $470 million; and
• Share repurchases of $627 million.

FY2023 guidance:

• Net sales growth of low single digits driven by market outperformance and completed acquisitions;
• Adjusted operating margin of 9.3% to 9.9%;
• Interest expense of $170 - $190 million;
• Adjusted effective tax rate of approximately 25%; and
• Capital expenditures of $350 - $400 million.

Kevin Murphy, Ferguson CEO, commented, "Our associates delivered another quarter of strong financial performance driven by continued market share gains and our ability to appropriately manage and pass through price inflation. Ongoing cost control ensured a robust profit performance in the quarter as we ran up against tough prior year comparables. For the full year, our teams achieved excellent results despite labor and supply chain challenges. The balance sheet remains strong as we continue to invest for organic growth, consolidate our fragmented markets through acquisitions and return capital to shareholders.

"We are well positioned for the year ahead with diversified end market exposure and a strong balance sheet. The agility of our business model will enable us to navigate macro economic headwinds.

Importantly, we remain confident in the strength of our markets over the longer term and our financial guidance continues to reflect market outperformance, both organically and from acquisitions."