Ferguson Enterprises (FERG) Risk Factor Changes

In addition, the market price of our common stock could also be adversely affected by developments unrelated to our operating performance, such as the operating and share price performance of other companies that inve…

Further, sustainability reporting is expected from, and in certain cases required by, certain stakeholders, state regulators, investors, shareholders and other third parties.

Certain organizations that provide corporate governance and other corporate risk information to investors and shareholders have developed scores and ratings to evaluate companies and investment funds based upon sustai…

Ongoing focus on sustainability matters by investors, customers, regulators and other parties may impose additional costs or expose us to new risks.

Corporate responsibility, specifically related to sustainability matters, may impose additional costs and expose us to new risks.

In recent years, a number of new laws and regulations have been adopted, new executive orders have been announced, and there has been expanded enforcement of certain existing laws and regulations by federal, state and…

Our private label products subject us to certain increased risks such as regulatory, product liability and reputational risks that could have an adverse effect on our business, financial condition and results of opera…

For example, the location of tax residence of certain subsidiaries could be challenged.

The nature of our operations can expose our associates, contractors, customers, suppliers and other individuals to health and safety risks, which can lead to loss of life or severe injuries or illness.

Attracting and retaining experienced, skilled associates must be balanced with managing overall labor costs.

We believe the quality of our associates provides us with the capabilities and expertise to serve our customers better than our competitors do.

In addition, our operations are working capital intensive, and our inventories, accounts receivable and accounts payable are significant components of our net asset base.

We accept payments using a variety of methods, including, but not limited to, cash, checks, credit and debit cards, PayPal and electronic payments, and we may offer new payment options over time.

For these information technology systems and processes to operate effectively, we rely on our service providers to continue to support and maintain them.

Technology systems and data are fundamental to the operations, future growth and success of our business.

Loss of customer, supplier, associate, or other business information or compromise of our information systems could disrupt operations and our key business processes, result in the impairment or loss of critical data,…

We face global cybersecurity threats, which range from uncoordinated individual attempts to sophisticated and targeted measures, known as advanced persistent threats, directed at us and our customers, suppliers, and s…

We source, distribute and sell products from domestic and international suppliers.

If our domestic or international supply chain or our fulfillment network for our products is ineffective or disrupted for any reason, including the loss of key suppliers, our business, financial condition and results…

We are exposed to foreign currency exchange rate risk with respect to the USD relative to the local currencies of our international subsidiaries, predominantly CAD, arising from transactions in the ordinary course of…

Potential regional or global barriers to trade or a global trade war could increase the cost of our products, which could have a material adverse impact on the competitiveness of our products and our business, financi…

Fluctuating product prices have in the past and may in the future adversely affect our business, financial condition and results of operations.

In response to these competitive pressures, among other initiatives, we are leveraging technology to enhance customer service, streamline product delivery and develop tools to save customers time and money.

Additionally, we have experienced and may continue to experience competitive pressure from certain of our suppliers vertically integrating and selling their products directly to customers.

The markets in which we operate are fragmented and highly competitive.

In fiscal 2025, residential markets and non-residential markets each accounted for approximately half of our net sales, with net sales within these combined markets balanced between RMI (approximately two-thirds of ou…

We have in the past and may in the future be adversely impacted by declines in the residential and non-residential markets.

In addition, we have closed and may in the future choose to close underperforming branches and/or showrooms from time to time as warranted by general economic conditions and/or weakness in the end markets in which we…

Our financial performance depends significantly on industry trends and general economic conditions, including the state of the residential and non-residential markets, as well as changes in gross domestic product in t…

Weakness in the economy, market trends, uncertainty and other conditions in the markets in which we operate, particularly in the U.S., have in the past and may in the future adversely affect the profitability and fina…

We are subject to income taxes in the U.S.

A widespread public health crisis may decrease demand for our products and solutions due to public reaction to the health crisis or actions taken by governmental or other regulatory organizations to control or otherwi…

A public health crisis, such as a pandemic or epidemic, and associated government restrictions to prevent its spread, could have a material adverse impact on our business, results of operations and financial condition…

A public health crisis could have a material adverse impact on our business and results of operations.

Furthermore, while we regularly evaluate potential upgrades and enhancements to our information technology systems and processes, we may be unable to make such upgrades on a timely basis or at all due to a lack of spe…

We rely on data centers and other technologies and services provided by third parties in order to manage our cloud-based infrastructure and operate our business.

We rely on IT systems, networks, products, and services, some of which are managed by service providers to protect our information.

While we have instituted safeguards for the protection of our information systems and believe we use reputable third-party service providers, during the normal course of business, we and our service providers have exp…

Our business could be negatively impacted by a serious disruption in the movement of products through our supply chain or by an increase in the cost of such products, including due to any of the following or other fac…

This process and the change in the U.S.

Trade tensions between the U.S.

Furthermore, the U.K.

As required by U.K.

We operate a variety of pension plans, including funded and underfunded defined benefit schemes in Canada and the U.K.

Our financial performance depends significantly on industry trends and general economic conditions, including the state of the residential and non-residential markets, as well as changes in gross domestic product in t…

Our sustainability and Inclusion-related initiatives and goals may not be favored by certain stakeholders, whose priorities and expectations may not align or may be opposed to one another, which could result in public…

Further, the application of tax law is subject to interpretation.

We are subject to income taxes in the U.S.

We rely on third parties to provide payment processing services, including the processing of credit cards, debit cards, and other forms of electronic payment.

In addition, our information technology systems, infrastructure and personnel require substantial investments, such as replacing existing systems, some of which are older, legacy systems that are less flexible and eff…

We rely on information technology systems, networks, products, and services, some of which are managed by service providers to protect our information.

While we have instituted safeguards for the protection of our information systems and believe we use reputable third-party service providers, during the ordinary course of business, we and our service providers have e…

For example, the rapid evolution of AI and machine learning technologies and the implementation of pilot programs integrating generative AI into both our internal and external-facing systems may intensify our cybersec…

Further, as we add fulfillment capabilities or pursue strategies with different fulfillment requirements, our fulfillment network becomes increasingly complex and operating it becomes more challenging.

Additionally, the loss of key supplier arrangements could have a material adverse impact on us.

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.

Trade restrictions could be adopted with little to no advanced notice, and we may not be able to effectively mitigate the adverse impacts from such measures.

Conversely, if tariffs, duties or quotas are lifted or if the level of imported products otherwise increases, we could be adversely affected to the extent that we would then have higher-cost products in our inventory…

Changes in laws or policies governing the terms of foreign trade, and in particular increased trade restrictions, tariffs, sanctions or taxes on imports from countries where we import products or raw materials (either…

In spite of the efforts taken to match our plan liabilities with a portfolio of assets designed to hedge the underlying interest, inflation and longevity risk, certain actions by pensions regulators or the trustees of…

The U.K.

We operate a variety of pension plans, including defined benefit plans in Canada and the U.K.

Furthermore, any of these conditions could affect key suppliers, which could impair their ability to deliver products and result in delays for our customers or added costs.

Any of these events could impair the ability of our customers to make full and timely payments for, or reduce the volume of, products our customers purchase from us and could cause increased pressure on our selling pr…