Ferguson Enterprises (FERG) official guidance

We've updated our CapEx estimate to a range of $375 million-$425 million to reflect the timing of our expected capital deployment.

We anticipate an effective tax rate of approximately 26%.

We expect to complete the FloWorks acquisition in our third quarter and believe this transaction creates compelling value for our shareholders. The cash transaction values FloWorks at an enterprise value of approximately $1.6 billion, and we expect the deal to be immediately accretive to adjusted earnings per share.

Looking at the rest of the P&L, interest expense remains unchanged at approximately $200 million.

We expect our net debt-to-EBITDA leverage to increase from 1.3x at the end of the second quarter to approximately 1.8x upon closing the acquisition, keeping us within our stated leverage target of 1x to 2x.

We're also raising the lower-end of our operating margin guidance, which we now expect to be in the range of 9.5%-9.8%.

We now expect net sales to grow mid-single-digits, an increase from our prior expectations of low-to mid-single-digit growth.

We estimate CapEx of approximately $350 million the upper end of our previous guide.

We continue to expect our effective tax rate to land at approximately 26%.

And as we had talked about coming out of the summer months that we had expected, to get back more into that normalized range of somewhere between 30-31%, So I think you can you can expect it in that in that range. As we exit the calendar year.

Interest expense is expected to be approximately $190 million for the year.

And we expect an operating margin range of between 9.4% to 9.6% up from our prior expectation of between 9.2% to 9.6%.

Assuming that we have supportive market and we have decent growth, we would expect some modest progression on operating margins next year.

And if we look at entering the calendar '26, we would expect modest price increases that are in line with traditional behavior on the finished goods side of the world, and those announcements are coming through right now.

We now expect approximately 5% revenue growth for the year.