Income tax

3 Months Ended

Oct. 31, 2024

Income Tax Disclosure [Abstract]

Income tax

Income tax

As of August 1, 2024, Ferguson is a U.S. corporation. The provision for income taxes for fiscal 2025 consists of provisions for the U.S. plus non-U.S. tax rate differentials with respect to other locations in which Ferguson’s operations are based. For fiscal years prior to 2025, Ferguson’s provision for income taxes consists of provisions for the U.K. plus non-U.K. tax rate differentials with respect to other locations in which the predecessor operated. Accordingly, the consolidated income tax rate is a composite rate reflecting earnings in various locations and the applicable tax rates.

The Company’s tax provision for each period presented was calculated using an estimated annual tax rate, adjusted for discrete items occurring during the applicable period to arrive at an effective tax rate. The effective income tax rates for the relevant periods were as follows:

	Three months ended
	October 31,
	2024		2023
Effective tax rate	24.7	%	24.9	%

During the three months ended October 31, 2024, there were no material changes to the Company’s unrecognized tax benefits when compared to those items disclosed in the Annual Report.