10-QPeriod: Q3 FY2026

LOWES COMPANIES INC Quarterly Report for Q3 Ended Aug 1, 2025

Filed August 28, 2025For Securities:LOW

Summary

Lowe's Companies, Inc. reported modest revenue growth for the second quarter of fiscal year 2025, with net sales increasing by 1.6% to $24.0 billion. This growth was primarily driven by a 1.1% increase in comparable sales, fueled by a 2.9% rise in average ticket, though partially offset by a 1.8% decrease in customer transactions. Net earnings remained stable at $2.4 billion, resulting in diluted earnings per share (EPS) of $4.27, a slight increase from $4.17 in the prior year period. The company successfully navigated market uncertainties by leveraging productivity initiatives and its 'Total Home' strategy, which continues to support Pro customer growth and online sales. For the first six months of the fiscal year, net sales saw a slight decrease of 0.1% to $44.9 billion, with comparable sales down 0.3%. Net earnings for the six-month period were $4.0 billion, compared to $4.1 billion in the prior year, leading to diluted EPS of $7.19 versus $7.23. The company completed the acquisition of Artisan Design Group (ADG) for $1.3 billion, which is expected to expand its Pro customer offerings. Lowe's maintained a strong liquidity position with $4.9 billion in cash and cash equivalents and $4.0 billion in undrawn credit facilities, while continuing to return capital to shareholders through dividends and share repurchases, albeit at a reduced pace for repurchases in the current period.

Financial Statements
Beta

Key Highlights

  • 1Net sales for the second quarter increased 1.6% to $24.0 billion, driven by a 1.1% increase in comparable sales.
  • 2Diluted Earnings Per Share (EPS) for the second quarter was $4.27, up from $4.17 in the prior year, despite a slight decrease in customer transactions.
  • 3Completed the acquisition of Artisan Design Group (ADG) for $1.3 billion to enhance Pro customer offerings.
  • 4Cash flow from operations remained strong, providing $7.6 billion for the first six months of the fiscal year.
  • 5The company reported $4.9 billion in cash and cash equivalents and $4.0 billion in undrawn revolving credit facilities as of August 1, 2025, indicating robust liquidity.
  • 6Significant share repurchases occurred in the prior year, while the current six-month period saw $113 million in repurchases, indicating a shift in capital allocation strategy.
  • 7Subsequent to the quarter, Lowe's announced a definitive agreement to acquire Foundation Building Materials (FBM) for approximately $8.8 billion, signaling a major strategic expansion.

Frequently Asked Questions

For the second quarter of fiscal year 2025, Lowe's reported a 1.6% increase in net sales to $24.0 billion, driven by a 1.1% rise in comparable sales. Net earnings remained stable at $2.4 billion, resulting in diluted earnings per share (EPS) of $4.27, an increase from $4.17 in the prior year's second quarter.

The acquisition of ADG was completed on June 2, 2025, for $1.3 billion. While the acquisition is expected to expand Lowe's Pro customer offerings, the financial statements note that the acquisition's impact was not material to the consolidated financial statements in terms of pro forma revenue and earnings. However, the quarter's results included $43 million in pre-tax expenses related to transaction costs and purchase accounting adjustments for ADG, which decreased diluted EPS by $0.06.

Lowe's maintains a strong liquidity position with $4.9 billion in cash and cash equivalents and $4.0 billion in undrawn capacity on its revolving credit facilities as of August 1, 2025. For the first six months of the fiscal year, the company generated $7.6 billion in cash flow from operations. Capital expenditures for the six-month period were $1.0 billion. While dividend payments continued, share repurchases were significantly lower in the first six months of fiscal 2025 ($113 million) compared to the prior year ($1.9 billion), with $10.8 billion remaining available under the share repurchase program.

Subsequent to the end of the second quarter, on August 20, 2025, Lowe's announced a definitive agreement to acquire Foundation Building Materials (FBM) for approximately $8.8 billion. This acquisition is intended to accelerate Lowe's 'Total Home' strategy by enhancing its offerings to Pro customers through expanded capabilities, fulfillment, digital tools, and trade credit platforms.