Ferguson recently released their Q3 Results through April 30, 2025 and although the pace of Ferguson acquisitions has slowed, their growth remains strong. Their focus on the dual trade contractor (Plumbing and HVACR) continues to be a winning company strategy.
Source: Ferguson Q3 results released June 3, 2025
Ferguson shared that Sales were up 4.3% in the Quarter with strong organic growth of 5% and a +20 bps improvement is strong performance (Feb. – April 2025) during a time of uncertainty in the channel.
Over the past year I have been writing consistently about Ferguson in HVACRtrends and will our friends at Modern Distribution Management. We have an extensive 3-part MDM premium reader series on Ferguson. I would encourage you to consider getting an MDM Premium subscription for your company to see the full series on MDM.
In the MDM Series we took a deep dive into Ferguson’s extensive private brand programs and their leading digital efforts (on both ferguson.com and build.com). We completed that digital look with an examination of Ferguson Pro Plus Customer Rewards program.
- Part 1: How Ferguson Worked Wonders with “Channel Drifting” Expansion
- Part 2: Inside Ferguson’s Private Brand Strategy
- Part 3: A Deep Dive into Ferguson’s Digital Strategy
In the series and accompanying MDM podcast, we discussed Ferguson’s three big strategic initiatives.
Ferguson has a laser focus on Dual Trade Contractors (Plumbing and HVACR) and has expanded their customer segments with strategic moves and acquisitions. This strategic move from just plumbing into HVACR, PVF Waterworks, Residential Lighting, and more was fun to write about. I call this channel drifting where now they compete with different distributors in each customer segment they are pursuing.
Ferguson consistently tracks their Market Share across 9 Segments with the Plumbing and HVAC channels representing $100 Billion market opportunity annually.
29% of Ferguson’s total sales come from HVAC and Plumbing Channel and solid growth comes from those two channels (served often by Dual Trade Contractors). Of course, Ferguson’s digital programs on both build.com and ferguson.com and their Ferguson Pro Plus Customer Rewards programs are key factors in driving that dual trade contractor growth. That strategy appears to be delivering solid results again for their business.
As a distributor or manufacturer in the HVACR channel are you considering focusing more on the Dual Trade Contractor like Ferguson?
As always, we appreciate your comments and feedback. jgunderson@channelmkt.com
