10:26 AM EDT, 06/03/2025 (MT Newswires) -- Ferguson Enterprises ( FERG ) raised its full-year sales growth expectations on Tuesday as the company's fiscal third-quarter earnings increased year over year, while revenue topped market estimates.

The plumbing and heating products company now anticipates sales to rise by low- to mid-single digits for fiscal 2025, compared with its previous projections for a low-single-digit gain. The current consensus on FactSet is for sales of $30.23 billion. Shares of the company climbed 13% in Tuesday trade.

"While we are in a dynamic and uncertain environment, given the strong performance in the quarter we are updating our full-year guidance," Chief Executive Kevin Murphy said in a statement. "We remain confident in our markets over the medium term and continue to balance investment in key strategic opportunities."

Adjusted operating margin is set to be in a range of 8.5% to 9% for the fiscal year, up from the prior guidance of 8.3% to 8.8%. The metric rose by 20 basis points to 9.4% in the third quarter.

"The combination of strong volume growth, gross margin actions, moderating deflation and the early benefits of streamlining our business drove adjusted operating profit growth and adjusted operating margin expansion," according to Murphy.

For the quarter ended April, Ferguson reported adjusted earnings of $2.50 a share, up from $2.32 the year before. Sales inclined 4.3% to $7.62 billion and exceeded the Street's view for $7.42 billion.

Higher finished goods prices were offset by persistent weakness in certain commodity categories, leading to overall pricing being broadly flat in the quarter, according to the firm. On an organic basis, revenue gained 5%, partially offset by foreign exchange rates, among other factors.

Sales in the US increased to $7.29 billion from $6.97 billion in the prior-year quarter, as residential revenue and non-residential revenue advanced 2% and 7%, respectively. Sales in Canada nudged 0.3% lower to $333 million.

Gross margin improved by 50 basis points to 31% on an annual basis. Ferguson said it incurred $68 million of non-recurring charges in the quarter, as it streamlined its operations and increased efficiency. These measures are expected to generate about $100 million in annualized savings, according to the firm.

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