Newport News’ Ferguson Joins Elite Fortune 500 List
Construction product distributor ranks 146 among nation's largest companies
A Newport News Daily contributor produced this post using AI and these sources:
Ferguson Fortune 500 Press Release
Ferguson Enterprises - Wikipedia
Ferguson FY25 Q3 Results Press Release
Fortune 500 - Wikipedia
Ferguson Enterprises, Inc., a leading value-added distributor for North American construction markets, has made its debut on the prestigious 2025 Fortune 500 list, landing at number 146. This milestone underscores the Newport News-based company's substantial presence and economic impact within its sector.
Ferguson earned its place on this annual ranking based on its fiscal year 2024 revenues of $29.6 billion. The company's inclusion follows a significant corporate restructuring completed in August 2024, which relocated its parent company headquarters to Newport News. Kevin Murphy, Ferguson CEO, expressed honor in joining the list, attributing the achievement to the dedication of their associates and the strong relationships built with customers and suppliers who rely on Ferguson to make complex projects simple, successful, and sustainable.
Fortune 500
The Fortune 500 is an annual ranking compiled and published by Fortune magazine. It lists the 500 largest corporations in the United States, ranked by their total revenue for their respective fiscal years. The list includes both publicly held companies and privately held companies whose revenue information is publicly available. The concept was created by Fortune editor Edgar P. Smith, with the first list published in 1955. The Fortune 500 is more commonly referenced than related lists such as the Fortune 100 or Fortune 1000. Originally, the list was limited to companies deriving revenue from manufacturing, mining, and energy exploration. The methodology was updated in 1994 to include service companies, which added numerous new entrants. As of 2020, Fortune 500 companies collectively represented approximately two-thirds of the United States' gross domestic product.
Financial performance
Adding to its significant Fortune 500 entry, Ferguson recently reported its financial performance for the third quarter of fiscal year 2025. Net sales for the third quarter reached $7.6 billion, an increase of 4.3% compared to the prior year, despite facing the impact of one fewer sales day and adverse foreign exchange rates. Organic revenue growth was 5.0%, and acquisition growth contributed 1.0% to sales. The company achieved a gross margin of 31.0%, a 50 basis point improvement year-over-year.
This margin expansion was driven by specific actions to better capture the value delivered to customers while maintaining market share, as well as moderating deflation. Operating margin for the quarter was 8.0%, with an adjusted operating margin of 9.4%. Diluted earnings per share were $2.07, and adjusted diluted earnings per share were $2.50. Ferguson declared a quarterly dividend of $0.83, representing a 5% increase over the previous year. During the quarter, Ferguson completed three acquisitions, including two in the U.S.: Independent Pipe & Supply Corp., a commercial/mechanical distributor in the Northeast, and Light Innovations Inc., a residential building and remodel showroom in Little Rock, Arkansas, supporting the Ferguson Home strategy.
The company also repurchased $251 million in shares during the quarter. Ferguson's balance sheet remains strong, with a net debt to adjusted EBITDA ratio of 1.2x. CEO Kevin Murphy highlighted strong volume growth, gross margin actions, moderating deflation, and the early benefits of streamlining the business as key drivers for the adjusted operating profit growth and margin expansion. The company updated its full-year guidance, projecting low to mid-single-digit revenue growth with an adjusted operating margin range of 8.5% to 9.0%, expressing confidence in its markets over the medium term.
Company history
Ferguson boasts a rich history dating back to its founding in 1953. The company began with two locations, Lenz Supply and Smither Supply, and expanded throughout the Southeast, eventually establishing its headquarters in Newport News, Virginia. A significant event in its history was being acquired by Wolseley UK in 1982 for $30.7 million. Ferguson merged with Familian in 1989. The company experienced significant layoffs during the Great Recession due to a slowdown in business. Growth has also come through various acquisitions, including Power Equipment Direct in 2012, Signature Hardware in 2016 for $210 million, and multiple others between fiscal years 2019 and 2020, such as Columbia Pipe & Supply, S.W. Anderson, Process Instruments, Innovative Soil Solutions and Action Plumbing Supply, Mission Pipe, and Kitchen Art.
In 2017, the parent company, Wolseley plc, changed its name to Ferguson plc. A pivotal recent change occurred in August 2024, when Ferguson plc merged into Ferguson Enterprises Inc., officially establishing the parent company's headquarters in Newport News, Virginia.
More recently, in February 2025, the company announced that its residential-focused brands, Ferguson Bath, Kitchen & Lighting Gallery and Build.com, would operate under the unified name Ferguson Home. Ferguson is recognized as the largest U.S. distributor of products for specialized professionals in areas including plumbing, HVAC, appliances, lighting, pipes, valves and fittings (PVF), and water and wastewater solutions. The vast majority of the company's revenue, 95%, is generated in the United States, with 5% coming from Canada. As of July 31, 2024, Ferguson had approximately 35,000 employees and operated from 1,773 branches.