Ferguson Enterprises : 2024 Annual Report
FERG
Annual Report FY2024
Ferguson is the largest value-added distributor serving the specialized professional in our $340B residential and non-residential North American construction market.
We help make our customers' complex projects simple, successful and sustainable by providing expertise and a wide range of products and services from plumbing, HVAC, appliances, and lighting to PVF, water and wastewater solutions, and more.
Throughout Ferguson's history, the trade professional has always been our core customer. Our goal is to provide that customer with the products and solutions needed to enable project success. We believe that our associates are the driving force of our operations and a key differentiator in creating value for our customers.
Our vision is clear: to be the ultimate project success company. Guided by our values - safety, integrity, service, teamwork and impact - our customer groups collaborate to bring greater value to our customers throughout the life of the project. Through scale deployed locally utilizing our world-class supply chain, value-added solutions and digital tools, along with our expert associates, we help meet our customers' unique needs.
~1,800
Branches
~35K
Associates
~36K
Suppliers
1M+
Customers
Annual Report FY2024 | 3
Our core strengths
We deliver value for our customers through scale deployed locally.
World-class supply chain
Our scale and global supply chain set us apart. We deploy scale locally through our vast network of facilities and our fleet of vehicles for final-mile delivery. This extensive network places us within 60 miles of 95% of our customers in North America. We intend to build on this competitive advantage by further optimizing our network through a combination of automation, efficiency and expansion to drive the best breadth and depth of inventory to better serve our customers.
Value-added solutions
We strive to consistently provide differentiated services to our customers to drive construction productivity and help make their projects more successful. We deliver solutions that enable our customers to improve project planning and execution, including virtual design and construction, project management, pre-assembly, fabrication and kitting and installation services.
Branch
Market Distribution Center
Regional Distribution Center
Import Center
ALASKA
HAWAII
Digital tools
Through our digital platforms, we provide our customers with a suite of tools to support their businesses, such as order and quote management, fulfillment selection, budget tracking and more. We help drive productivity for our customers by enabling them to easily plan, order and track the delivery of products for all their project needs.
Experts serving experts
We are a project success company enabled by knowledgeable associates. The commitment to quality, dedication and service that our associates deliver to our customers and the long-term relationships they develop are key differentiators. We are committed to recruiting, developing, engaging and retaining passionate people who build the relationships that are vital to our success.
Annual Report FY2024 | 5
Ferguson has a balanced business mix and leading positions in large, growing and fragmented markets that outpace GDP over the long term. Our balanced exposure and agile business model position us to take advantage of growth opportunities while navigating dynamic markets.
Balanced market exposure
~1/3
New construction
~2/3
Repair, Maintenance and Improvement (RMI)
~1/2
Residential
~1/2
Non-residential
Our positions in North
American markets
Residential Trade Plumbing
$30B market
HVAC
~$70B market
Residential Building and Remodel
$29B market
Residential Digital Commerce
$23B market
Waterworks
$29B market
Commercial / Mechanical
$17B market
Fire & Fabrication
$4B market
Facilities Supply
~$100B market
Industrial
$33B market
0
18% share
#2 market position
14% share
#1 market position
9% share
#4 market position
23% share
#1 market position
23% share
#1 market position
26% share
#1 market position
6% share
#2 market position
$25B$50B
5% share
#3 market position
$30B
revenue with a
~$340B
market opportunity
>75%
of revenue generated from the #1 or #2 market positions.
1% share
#3 market position
$75B$100B
Market size, market share, market position, residential/non-residential proportion and RMI/new construction proportion are approximates and derived from management estimates as of FY2024.
Annual Report FY2024 | 7
HVAC everywhere we
are plumbing
The residential market has evolved, with a growing proportion of our customers working as dual-trade plumbing and HVAC companies.
We help the dual-trade pro succeed by providing convenient access to the expertise, equipment, parts and supplies for their repair and maintenance needs and new construction projects. Bringing together market-leading capabilities in both plumbing and HVAC is a competitive advantage.
By offering a wide selection of plumbing and HVAC products in our branches, we strive to meet every customer's needs while we capture growth from the dual-trade market. We remain focused on dual-trade branch conversions, geographic branch expansion and strategic acquisitions.
Large capital project opportunities
We have seen robust bidding activity and early-stage shipment activity on large capital projects driven in part by onshoring/re-shoring and supported by federal stimulus.
These large capital projects provide us with a significant opportunity to sell "from the ground up" solutions throughout the life cycle of the project as we leverage our unique ability to bring multiple customer groups to an individual project. We engage early on large capital projects, building relationships with owners, general contractors and engineers. We believe this approach and our capabilities will help us to capitalize on the
~$50 billion total addressable market opportunity for these projects.* Key focus areas include data centers, chip and semi-conductor manufacturing facilities, electric vehicle and battery plants, biotech facilities, water and wastewater treatment plants and sports and entertainment facilities. We expect to see continued momentum from large capital projects throughout the fiscal year.
Ferguson multi-customer group opportunity
Data center buildout**
Fire & Fabrication
• Fire protection pipe & sprinklers
• Design & fabrication
Commercial
Waterworks
• PVF
• Water & wastewater PVF
• Virtual design & construction
• Stormwater drainage &
• Fabrication
retention
• Geosynthetic solutions
Industrial
Annual Report FY2024 | 9
Our vision for sustainability
Our vision is to minimize the environmental impact of our operations and foster a culture that is safe, inclusive and engaging for all our associates.
Beyond the scope of our operations, we are committed to driving sustainable product innovation and helping our customers achieve their sustainability goals while supporting the communities we serve through Ferguson Cares.
Ferguson's Board-approved environmental, social and governance (ESG) framework provides a structured strategy that informs our actions and approach to ESG.
Environmental
Social
Governance
Fleet
Health & Safety
Board Management
Electric / hybrid vehicles
and Composition
Associate Development
Facilities
Inclusion & Diversity
Shareholder Engagement
Energy management
Human capital management
Shareholder rights
Renewable energy
Supply Chain
Executive compensation
Sustainable Products
Supplier compliance and
Regulatory and Risk Oversight
Supplier Code of Conduct
Encourage adoption of sustainable
Product safety
Ethics / business conduct
and energy-ecient solutions
Enterprise risk management
Product quality
Information security
Community Investment/
Privacy
Ferguson Cares
Compliance with laws and regulations
Disclaimer
Ferguson Enterprises Inc. published this content on October 15, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on October 15, 2024 at 11:42:07.989.