FERG - Takeaways from the Truist Securities Industrials & Services Conference

Research evidence excerpt

FERG - Takeaways from the Truist Securities Industrials & Services Conference

Truist Securities

Equity Research Report June 22, 2026

INDUSTRIALS: Distributors Ferguson Enterprises Inc. (FERG)

FERG - Takeaways from the Truist Securities Industrials & Services Keith Hughes

404-926-5032 Conference

Keith.Hughes@truist.com

Julian Nirmal FERG continues to show revenue growth with large projects, particularly data centers, more

404-836-4749 than offsetting residential declines. FERG is uniquely positioned to serve these markets and

Julian.Nirmal@truist.com we see this continuing. Inflation will add to results, but recent falling crude oil could limit

its impact in our view heading into 2027. We remain Buy-rated but note some of the large

capital projects can be lumpy and could make results more volatile.

Stock Rating BUY

Unchanged We recently hosted meetings with numerous management teams at our Truist Securities

Industrial & Services Conference. Below are comments regarding FERG.

Price Target $300.00

Unchanged Large Capital Projects Continue to Help Growth. Management highlighted that revenues

from large capital projects were around MSD-HSD% of total revenues with data centers

representing about half. The shift towards liquid-based cooling has provided a meaningful

tailwind for FERG as can be seen in its growth for non-residential products. We note that

TR to Target 32.1% their Fire & Fabrication, Commercial/Mechanical, and Industrial customer groups are the

Price (Jun. 17, 2026) $229.62 main purchasers for these projects.

52-Wk Range $267.71-$211.61 FERG Uniquely Positioned to Serve These Markets. The ability for FERG to provide both

Market Cap ($M) $45,006 municipal water products (at times paid for by the project developers themselves), process