Cash flow generation remains highly volatile, as evidenced by the swing from a negative 6.1% FCF margin in 2026Q2 to a positive 9.1% in 2026Q3, largely driven by fluctuating working capital requirements.
| Metric | TTM | Jul'25 | Jul'24 | Jul'23 | Jul'22 | Jul'21 | Jul'20 | Jul'19 | Jul'18 | Jul'17 | Jul'16 | Jul'15 | Jul'14 | Jul'13 | Jul'12 | Jul'11 | Jul'10 | Jul'09 | Jul'08 | Jul'07 | Jul'06 | Jul'05 | Jul'04 | Jul'03 | Jul'02 | Jul'01 | Jul'00 | Jul'99 | Jul'98 | Jul'97 | Jul'96 |
|---|
| Cash from Operations | 1.24B | 1.91B | 1.87B | 2.72B | 1.15B | 1.38B | 1.54B | 1.29B | 1.04B | 950M | 1.04B | 1.07B | 764.2M | 630.9M | 1.01B | -333.14M | 1.14B | 1.58B | 2.06B | 1.98B | 997.72M | 931.58M | 86.91M | 582.77M | 534.8M | 424.27M | 258.25M | 222.86M | 259.28M | 187.32M | 172.46M |
| Operating CF Margin % | - | 6.2% | 6.32% | 9.16% | 4.02% | 6.06% | 7.75% | 5.86% | 4.99% | 4.93% | 6.27% | 5.13% | 3.68% | 3.15% | 4.81% | -1.5% | 5.5% | 6.56% | 7% | 5.99% | 3.77% | 4.48% | 0.47% | 4.4% | 4.29% | 4.14% | 2.69% | 2.5% | 3.33% | 2.48% | 2.57% |
| Operating CF Growth % | -165% | 1.87% | -31.22% | 136.99% | -16.86% | -10.55% | 19.77% | 24.52% | 9.05% | -8.64% | -2.56% | 39.65% | 21.13% | -37.76% | 404.28% | -129.23% | -28.04% | -22.94% | 3.99% | 98.08% | 7.1% | 971.84% | -85.09% | 8.97% | 26.05% | 64.29% | 15.88% | -14.05% | 38.42% | 8.62% | 16.8% |
| Net Income | 2.07B | 1.86B | 1.74B | 1.89B | 2.12B | 1.63B | 961M | 1.11B | 1.27B | 1.03B | 858.87M | 332.32M | 852.11M | 464.79M | 89.55M | 749.98M | -268.44M | -1.01B | 1.1B | 1.53B | 1.56B | 1.23B | 1.06B | 713.56M | 683.87M | 564.55M | 559.69M | 507.47M | 453.22M | 433.69M | 383.52M |
| Depreciation & Amortization | 383M | 373M | 335M | 321M | 301M | 298M | 602M | 288M | 245M | 442.93M | 379.22M | 647.49M | 262.06M | 344.4M | 845.19M | 374.17M | 1.01B | 2.08B | 1.09B | 641.03M | 351.26M | 215.79M | 267.3M | 198.12M | 186.45M | 121.63M | 110.83M | 100.33M | 88.88M | 83.33M | 78.29M |
| Stock-Based Compensation | 86M | 28M | 49M | 51M | 57M | 77M | 29M | 34M | 35M | 28.92M | 26.43M | 31.2M | 37.2M | 33.53M | 32.99M | 4.92M | 12.56M | 15.04M | 9.91M | 40.7M | 41.1M | 33.33M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 132.76M | 0 | 0 | 41M | 0 | 0 | -60M | -108M | -203M | -419.27M | -212.74M | 93.61M | -131.87M | -245.35M | 92.69M | 0 | 23.55M | -223.87M | -620.66M | 262.52M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -709.07M | -1M | 104M | -13M | 2M | 39M | -182M | 70M | 57M | 7.65M | 44.93M | 48.37M | 80.71M | 401M | 52.25M | -283.91M | 69.07M | -1.08B | -361.94M | -984.6M | -620.31M | -429.82M | -505.08M | -396.24M | -378.38M | -313.47M | -326.63M | -325.94M | -252.59M | -211.43M | -229.58M |
| Working Capital Changes | -725.97M | -348M | -350M | 434M | -1.33B | -662M | 195M | -102M | -365M | -139.35M | -56.82M | -85.81M | -336.01M | -367.47M | -98.97M | -1.18B | 296.69M | 1.81B | 840.77M | 484.33M | -332.57M | -119.3M | -732.48M | 67.33M | 42.86M | 51.56M | -85.63M | -59M | -30.23M | -118.26M | -59.77M |
| Change in Receivables | -248M | -321M | -98M | -1M | -780M | -756M | 210M | -132M | -351M | -267.29M | -27.75M | -84.45M | -138.46M | -124.52M | 0 | 0 | 194.66M | 0 | 0 | 0 | -454.02M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -108.32M | -150.09M | 0 |
| Change in Inventory | 77.94M | -273M | -252M | 607M | -927M | -748M | 19M | -172M | -102M | -122.88M | -47.57M | -176.3M | -118.35M | -73.15M | -94.26M | -270.78M | 20.41M | 806.95M | 436.25M | 179.08M | -319.49M | -98.25M | -499.8M | -77.8M | 11.58M | 47.14M | -113.53M | -80.55M | -15.03M | -92.35M | -60.86M |
| Change in Payables | -413.98M | 0 | 436M | 436M | 436M | 0 | -9M | 227M | 208M | 292.63M | 0 | 248.19M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -5.44M | -543M | -601M | -1.05B | -922M | -125M | -571M | -783M | 700M | -209M | -351.48M | -390.05M | -547.79M | -315.45M | 222.63M | 137.85M | 263.73M | -263.95M | -831.7M | -3.27B | -2.04B | -945.61M | -454.32M | -935.2M | -402.16M | -715.52M | -336.38M | -355.6M | -301.11M | -214.71M | -265.07M |
| Capital Expenditures | -231.15M | -305M | -372M | -441M | -290M | -174M | -302M | -418M | -299M | -233.95M | -288.05M | -360.41M | -339.83M | -213.35M | -212.08M | -152.62M | -131.86M | -262.3M | -628.59M | -805.86M | -646.46M | -419.3M | -282.24M | -200.22M | -185.05M | -172.04M | -188.66M | -188.82M | -133.81M | -118.92M | -120.47M |
| CapEx % of Revenue | 0.73% | 0.99% | 1.26% | 1.48% | 1.02% | 0.76% | 1.51% | 1.9% | 1.44% | 1.21% | 1.74% | 1.73% | 1.64% | 1.06% | 1.01% | 0.69% | 0.64% | 1.09% | 2.14% | 2.44% | 2.44% | 2.02% | 1.53% | 1.51% | 1.48% | 1.68% | 1.96% | 2.12% | 1.72% | 1.58% | 1.79% |
| Acquisitions | 141.36M | -301M | -260M | -616M | -650M | -286M | -317M | -449M | 1.02B | -32.86M | -137.42M | -109.21M | -270.51M | -160.01M | 337.76M | 169.03M | -32.97M | -55.13M | -362.88M | -2.74B | -1.53B | -703.51M | -225.03M | -812.14M | -252.93M | -552.02M | -244.45M | -470.19M | -92.15M | -149.59M | -123.74M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 84.35M | 63M | 31M | 3M | 18M | 335M | 21M | 77M | 10M | 2.61M | 73.99M | -9.36M | 62.56M | 57.91M | 52.97M | 121.44M | 178.96M | 304.09M | 159.77M | 273.8M | 181.23M | 175.44M | 52.95M | 77.15M | 35.82M | 8.55M | 96.73M | 282.83M | -75.15M | 53.8M | -20.86M |
| Cash from Financing | -1.03B | -1.29B | -1.31B | -1.81B | -744M | -2.05B | 4M | 131M | -1.86B | -472M | -722.77M | -418.14M | -424.37M | -1.02B | -413.69M | -210.06M | -1.58B | -864.13M | -951.66M | 994.98M | 1.69B | 70.18M | 203.89M | 15.14M | 11.89M | 361.75M | 286.59M | -7.78M | 47.87M | -54.13M | 89.65M |
| Debt Issued (Net) | -181.65M | 225M | 129M | -155M | 1.44B | -584M | 833M | 755M | 198M | -164.68M | -14.6M | 326.08M | 431.13M | -60.96M | -191.66M | -146.92M | -1.56B | -2.4B | -529.81M | 18.32M | 1.9B | 316.03M | 178.38M | 495.79M | -162.99M | 361.18M | 291.54M | -4.38M | 47.38M | -56.26M | -6.69M |
| Equity Issued (Net) | -46.98M | -948M | -617M | -908M | -1.64B | -382M | -466M | -176M | -716M | 19M | -395.08M | -391.8M | -9.85M | -144.77M | 20.42M | 9.85M | 6.28M | 1.66B | 7.93M | 1.26B | 7.47M | 25.87M | 30.98M | 15.14M | 11.89M | 7.83M | 3M | 5.19M | 8.01M | 9.02M | 104.29M |
| Dividends Paid | -507.23M | -489M | -784M | -711M | -538M | -1.04B | -327M | -445M | -1.36B | -328M | -314.48M | -346.37M | -826.75M | -793.95M | -223.08M | -68.93M | 0 | 0 | -426.33M | -402.93M | -289.22M | -267.98M | -238.47M | -182.01M | -156.58M | -784M | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -46.98M | -948M | -634M | -908M | -1.64B | -400M | -477M | -188M | -716M | 0 | -458.41M | -390.05M | 0 | 0 | 0 | 0 | 0 | -7.86M | 0 | -52.57M | -50.45M | -35.11M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -289.41M | -74M | -41M | -33M | -9M | -49M | -36M | -3M | 20M | 1.68M | 1.39M | -6.06M | -18.89M | -18.29M | -19.37M | -4.06M | -26.69M | -124M | -3.45M | 121.75M | 74.96M | -3.75M | 233M | -313.77M | 319.57M | 776.74M | -7.95M | -8.59M | -7.52M | -6.89M | -7.94M |
| Net Change in Cash | 264M | 82M | -44M | -116M | -557M | -788M | 982M | 628M | -128M | 256M | -10.57M | 138.86M | -229.94M | -717.76M | 612.28M | -380.73M | 962.29M | 416.87M | 140.05M | -280.87M | 650.2M | 56.14M | -208.99M | -452.78M | 231.66M | 36.46M | 157.92M | -144.58M | -1.14M | -81.52M | -2.96M |
| Free Cash Flow | 1.01B | 1.6B | 1.5B | 2.28B | 859M | 1.14B | 1.26B | 872M | 737M | 754.43M | 751.84M | 706.77M | 424.37M | 417.55M | 796.49M | -485.76M | 1.01B | 1.31B | 1.28B | 1.12B | 351.26M | 512.28M | -195.33M | 382.55M | 349.76M | 252.23M | 69.59M | 34.04M | 125.48M | 68.4M | 51.99M |
| FCF Margin % | 3.19% | 5.21% | 5.07% | 7.67% | 3.01% | 5.01% | 6.33% | 3.96% | 3.55% | 3.91% | 4.53% | 3.4% | 2.05% | 2.08% | 3.78% | -2.18% | 4.86% | 5.44% | 4.37% | 3.39% | 1.33% | 2.46% | -1.06% | 2.89% | 2.81% | 2.46% | 0.72% | 0.38% | 1.61% | 0.91% | 0.77% |
| FCF Growth % | -28.04% | 6.8% | -34.22% | 165.66% | -24.72% | -9.59% | 44.72% | 18.32% | -2.31% | 0.34% | 6.38% | 66.55% | 1.63% | -47.58% | 263.97% | -148.2% | -23.16% | 2.07% | 14.8% | 218.64% | -31.43% | 362.27% | -151.06% | 9.38% | 38.67% | 262.47% | 104.44% | -72.87% | 83.44% | 31.57% | 9.67% |
| FCF per Share | 5.18 | 8.05 | 7.38 | 11.01 | 3.92 | 5.08 | 5.56 | 3.76 | 2.98 | 3.15 | 3.11 | 2.87 | 1.68 | 1.58 | 3.04 | -1.94 | 4.08 | 7.12 | 2.23 | 1.97 | 0.67 | 0.98 | -0.38 | 0.75 | 0.69 | 0.50 | 0.14 | 0.07 | 0.25 | 0.14 | 0.11 |
| FCF Conversion (FCF/Net Income) | 0.49x | 1.03x | 1.08x | 1.44x | 0.54x | 0.94x | 1.61x | 1.16x | 0.82x | 1.03x | 1.19x | 3.21x | 0.90x | 1.42x | 11.32x | -0.75x | -2.14x | -0.92x | 14.01x | 2.05x | 0.99x | 1.11x | 0.12x | 1.21x | 1.19x | 1.61x | 0.90x | 0.69x | 0.90x | 0.65x | 0.68x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical working capital volatility
According to recent financial disclosures, Ferguson's OCF/NI ratio fluctuated significantly, reaching 1.86 in 2026Q3 compared to a negative -1.29 in 2026Q2, which suggests that reported net income is currently a poor proxy for the actual cash-generating capacity of the underlying distribution business model.
The extreme variance in the conversion of net income to operating cash flow highlights the impact of aggressive working capital swings on reported earnings. Investors should monitor whether this divergence stems from temporary inventory management shifts or a more structural disconnect between accounting profit and cash realization.
As reported in quarterly filings, Ferguson's free cash flow margin swung from a negative 6.1% in 2026Q2 to a positive 9.1% in 2026Q3, illustrating the high sensitivity of cash generation to the timing of inventory procurement and project-based revenue recognition within the US construction market.
The sharp reversal in FCF trajectory underscores the difficulty in maintaining consistent cash flow during periods of cooling demand. This volatility suggests that the company's cash generation is heavily dependent on managing the cash conversion cycle rather than purely operational margin expansion.
Based on the provided cash flow statements, working capital changes have been a primary driver of liquidity, ranging from a $607 million inflow in 2025Q2 to a $307 million outflow in 2026Q1, indicating that inventory and payables management remains the most volatile component of Ferguson's cash flow.
The erratic nature of these working capital movements suggests that Ferguson is actively adjusting its inventory levels to match shifting demand in the residential and infrastructure sectors. Such fluctuations warrant further investigation into whether the company is successfully optimizing its supply chain or merely reacting to cyclical inventory bloat.
As detailed in recent financial statements, Ferguson consistently utilized cash for dividends and share repurchases, with buybacks totaling $350 million in 2026Q2, even as operating cash flow turned negative, suggesting a management preference for returning capital despite the cyclical pressures on the core business.
The commitment to shareholder returns during periods of negative operating cash flow may indicate management's confidence in the long-term durability of the business. However, investors should monitor if this capital allocation strategy limits the company's ability to fund necessary bolt-on acquisitions or maintain its branch network during a downturn.
Quick answers to the most common questions about buying FERG stock.
Ferguson plc (FERG) generated $1.91B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Ferguson plc (FERG) generated $1.60B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Ferguson plc (FERG) spent $305.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Ferguson plc (FERG) returned $489.0M to shareholders via cash dividends and spent $948.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.