Question · Q1 2026
Julie Ann, on behalf of Keith Hughes from Truist, asked when Ferguson expects the HVAC business to see an easing of difficult year-over-year comparisons, specifically related to the pre-shipment activity ahead of last year's standard change.
Answer
Kevin Murphy, Ferguson's CEO, acknowledged the challenging HVAC market, citing factors like the A2L transition pull-forward, equipment price increases for new standards, a pressured consumer shifting to repair over replacement, and past multifamily new construction playthrough. He stated it's difficult to pinpoint when the market will return to a "replace" environment or see residential recovery, but expressed long-term bullishness on the HVAC market and Ferguson's continued investment in convenient locations, OEM brand representation, and M&A.
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