What Ferguson Enterprises Inc. told the SEC could break it.

Up to ~15% of Ferguson's U.S. net sales are basic products containing significant commodity-priced materials — predominantly plastic, copper and steel — subject to volatile commodity-market pricing; rising prices raise costs and (if not passed through) cut operating profit, while sharp declines hurt inventory value.

“In the United States, net sales include basic products that contain significant amounts of commodity-priced materials, predominantly plastic, copper and steel, and other components which can be subject to volatile price changes based upon fluctuations in the commodities market. These commodity based products can represent up to approximately 15% of annual net sales.”

2025 U.S. and reciprocal tariffs on a wide range of products (directly or via Ferguson's suppliers) could reduce gross profit if costs can't be passed to customers, and could depress demand if customers' project costs rise and they delay or cancel purchases.

“If these tariffs are fully implemented and we are unable to pass on the costs of these tariffs to our customers, our gross profits will be reduced. In addition, if our customers' costs are increased, we could suffer from decreased demand as our customers may choose to delay or cancel projects and other purchases that include the products that we sell to them.”

Ferguson generated 95% of net sales in the U.S., so U.S.-specific macro factors — inflation/recession, interest and mortgage rates, foreclosure rates, government spending, labor shortages — strongly drive its results.

“which we operate, particularly in the U.S. where we generated 95% of our net sales in the transition period. Accordingly, a number of factors beyond our control, including but not limited to inflation, deflation, stagflation or recession, trade restrictions such as tariffs, sanctions and retaliatory countermeasures, the political climate, government spending, unemployment, interest rate and mortgage rate fluctuations, mortgage delinquency and foreclosure rates”

Ferguson has ~37,000 suppliers worldwide and its broad product offering depends on adequate supply; loss of suppliers, a substantial decrease in product availability, or loss of key supplier arrangements could materially harm its results.

“As of December 31, 2025, we had approximately 37,000 suppliers located in various countries around the world. Our ability to offer a wide variety of products to our customers is dependent upon our ability to obtain adequate product supply from our suppliers. The loss of, or an ongoing substantial decrease in the availability of, products from our suppliers, or the loss of key supplier arrangements, could materially adversely impact our financial condition, operating results, and cash flows.”