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Lowe's Reports Third Quarter 2025 Earnings

On November 19, 2025, Lowe's Companies, Inc. (NYSE: LOW) announced its financial results for the third quarter of fiscal 2025, indicating a robust performance amid an ever-evolving economic landscape. The home improvement retail giant reported net earnings of $1.6 billion, translating to a diluted earnings per share (EPS) of $2.88, which shows a decrease from the previous year's EPS of $2.99, yet reflects an underlying strength in the company’s operations.

During this quarter, Lowe's incurred $129 million in pre-tax expenses related to the acquisitions of Foundation Building Materials (FBM) and Artisan Design Group (ADG). Excluding these costs, the adjusted diluted EPS rose by 5.9%, reaching $3.06, highlighting the company's ability to drive profitable growth.

Sales Overview

Lowe's reported total sales of $20.8 billion in the third quarter, up from $20.2 billion in the same quarter the previous year. This growth was bolstered by an impressive 11.4% increase in online sales and double-digit growth in home services, alongside sustained growth in its Pro customer segment. The comparable sales for this quarter also saw a modest rise of 0.4%.

Strategic Insights

Lowe's President and CEO, Marvin R. Ellison, expressed satisfaction with the results in light of challenges presented by natural disasters in the previous year. He noted, "We are pleased to report another quarter of positive comparable sales and remain optimistic as we head into November. The recent acquisition of FBM is expected to enhance our offerings and drive long-term growth, particularly for our professional customers."

With 1,756 stores operating as of October 31, 2025, Lowe's spans 195.8 million square feet of retail space, providing a substantial footprint to serve its vast customer base effectively.

Capital Allocation and Investment

Lowe's is committed to delivering shareholder value through a prudent capital allocation strategy. This quarter, the company invested $8.8 billion primarily towards the acquisition of FBM and returned $673 million to shareholders through dividends.

Updated Full-Year Outlook

Given the ongoing uncertainties in the macroeconomic environment, Lowe's updated its full-year 2025 outlook to align with current expectations:

• - Total sales are projected to reach $86.0 billion, up from previous estimates ranging from $84.5 to $85.5 billion.
• - Comparable sales are anticipated to remain flat compared to the prior year, adjusted from a previous forecast indicating a potential increase of up to 1%.
• - Expected adjusted operating income is estimated to be 12.1% of sales, slightly lower than earlier forecasts of 12.2% to 12.3%.
• - The net interest expense is now expected to be around $1.4 billion, adjusted from an earlier estimate of $1.3 billion.
• - An effective income tax rate is projected at approximately 24.0%, down from 24.5%.
• - Adjusted diluted EPS has been revised to approximately $12.25, previously set between $12.20 to $12.45.
• - Planned capital expenditures remain aligned at up to $2.5 billion.

Conclusion

As Lowe's continues to navigate a complex market landscape, its ability to adapt through strategic investments and acquisitions positions it well for future growth. The upcoming conference call scheduled for November 19, 2025, at 9 a.m. ET will provide further insights into the company’s performance and strategic direction.