LOWE’S REPORTS THIRD QUARTER 2025 SALES AND EARNINGS RESULTS

Diluted EPS of $2.88; Adjusted Diluted EPS1 of $3.06 – – Comparable Sales increased 0.4% – – Updates Full Year 2025 Outlook –

Lowe's Companies, Inc. (NYSE: LOW) today reported net earnings of $1.6 billion and diluted earnings per share (EPS) of $2.88 for the quarter ended Oct. 31, 2025, compared to diluted EPS of $2.99 in the third quarter of 2024. During the third quarter, the company recognized $129 million in pre-tax expenses associated with the acquisitions of Foundation Building Materials (FBM) and Artisan Design Group (ADG). Excluding these expenses, third quarter 2025 adjusted diluted EPS1 increased 5.9% to $3.06 compared to the prior-year adjusted diluted EPS1.

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Total sales for the quarter were $20.8 billion,compared to $20.2 billionin the prior-year quarter. Comparable sales for the quarter increased 0.4%, driven by 11.4% online sales growth, double-digit growth in home services and continued growth in Pro sales.

“The company delivered another quarter of positive comp sales, and we're pleased to start November with positive comps as well, despite headwinds related to hurricane activity in the prior year. With the closing of the FBM acquisition last month, we look forward to enhancing our offering to Pro customers and creating more sustainable, long-term sales and profit expansion for the company,” said Marvin R. Ellison, Lowe's chairman, president and CEO.”I would like to thank our associates for their hard work and dedication to the business.”

As of Oct. 31, 2025, Lowe's operated 1,756 stores, representing 195.8 million square feet of retail selling space.

Capital Allocation

The company remains committed to a disciplined capital allocation strategy focused on driving long-term shareholder value. During the quarter, the company invested $8.8 billion for the acquisition of FBM and paid $673 million in dividends.

Lowe's Business Outlook

The company is updating its outlook for the operating results of full year 2025 to reflect the ongoing uncertainty in the macroeconomic environment. The updated outlook also includes expectations for FBM.

Adjusted operating income, adjusted operating margin and adjusted diluted EPS are non-GAAP financial measures that exclude the transaction costs, purchase accounting adjustments and intangible asset amortization related to the acquisition of FBM and ADG. The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items (which may be significant) without unreasonable effort.

Full Year 2025 Outlook

— Total sales of $86.0 billion (previously $84.5 to $85.5 billion)

— Comparable sales expected to be flat as compared to prior year (previously flat to up +1%)

— Adjusted operating income as a percentage of sales (adjusted operating margin) of 12.1% (previously 12.2% to 12.3%)

— Net interest expense of approximately $1.4 billion (previously $1.3 billion)

— Effective income tax rate of approximately 24.0% (previously 24.5%)

— Adjusted diluted earnings per share of approximately $12.25 (previously $12.20 to $12.45)

— Capital expenditures of up to $2.5 billion

A conference call to discuss third quarter 2025 operating results is scheduled for today, Wednesday, Nov. 19, at 9 a.m. ET. The conference call will be available by webcast and can be accessed by visiting Lowe's website at ir.lowes.com and clicking on Lowe's Third Quarter 2025 Earnings Conference Call Webcast. Supplemental slides will be available prior to the start of the conference call. A replay of the call will be archived at ir.lowes.com.

Lowe's Companies, Inc.

Lowe's Companies, Inc. (NYSE: LOW) is a FORTUNE® 100 home improvement company serving approximately 16 million customer transactions a week, with total fiscal year 2024 sales of more than $83 billion. Lowe's employs approximately 300,000 associates and operates over 1,700 home improvement stores, 530 branches and 130 distribution centers. Based in Mooresville, N.C., Lowe's supports the communities it serves through programs focused on creating safe, affordable housing, improving community spaces, helping to develop the next generation of skilled trade experts and providing disaster relief to communities in need. For more information, visit Lowes.com.

Disclosure Regarding Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as “believe”, “expect”, “anticipate”, “plan”, “desire”, “project”, “estimate”, “intend”, “will”, “should”, “could”, “would”, “may”, “strategy”, “potential”, “opportunity”, “outlook”, “scenario”, “guidance”, and similar expressions are forward-looking statements. Forward-looking statements involve, among other things, expectations, projections, and assumptions about future financial and operating results, objectives (including objectives related to environmental and social matters), business outlook, priorities, sales growth, shareholder value, capital expenditures, cash flows, the housing market, the home improvement industry, demand for products and services including customer acceptance of new offerings and initiatives, macroeconomic conditions and consumer spending, share repurchases, and Lowe's strategic initiatives, including those relating to acquisitions and dispositions and the impact of such transactions on our strategic and operational plans and financial results. Such statements involve risks and uncertainties, and we can give no assurance that they will prove to be correct. Actual results may differ materially from those expressed or implied in such statements.

A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results either expressed or implied by these forward-looking statements including, but not limited to, changes in general economic conditions, such as volatility and/or lack of liquidity from time to time in U.S. and world financial markets and the consequent reduced availability and/or higher cost of borrowing to Lowe's and its customers, slower rates of growth in real disposable personal income that could affect the rate of growth in consumer spending, inflation and its impacts on discretionary spending and on our costs, shortages, and other disruptions in the labor supply, interest rate and currency fluctuations, home price appreciation or decreasing housing turnover, age of housing stock, the availability of consumer credit and of mortgage financing, trade policy changes or additional tariffs, outbreaks of pandemics, fluctuations in fuel and energy costs, inflation or deflation of commodity prices, natural disasters, geopolitical or armed conflicts, acts of both domestic and international terrorism, and other factors that can negatively affect our customers.

Investors and others should carefully consider the foregoing factors and other uncertainties, risks and potential events including, but not limited to, those described in “Item 1A – Risk Factors” in our most recent Annual Report on Form 10-K and as may be updated from time to time in Item 1A in our quarterly reports on Form 10-Q or other subsequent filings with the SEC. All such forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update these statements other than as required by law.

1 Adjusted diluted earnings per share is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures Reconciliation” section of this release for additional information, as well as reconciliations between the company's GAAP and non-GAAP financial results.

LOW-IR

Contacts: Shareholder/Analyst Inquiries: Media Inquiries: Kate Pearlman Steve Salazar 704-775-3856 steve.j.salazar@lowes.com kate.pearlman@lowes.com
Lowe's Companies, Inc.Consolidated Statements of Current Earnings and Accumulated Deficit (Unaudited)In Millions, Except Per Share and Percentage Data Three Months Ended Nine Months Ended October 31, 2025 November 1, 2024 October 31, 2025 November 1, 2024Current Earnings Amount % Sales Amount % Sales Amount % Sales Amount % SalesNet sales $ 20,813 100.00 $ 20,170 100.00 $ 65,701 100.00 $ 65,120 100.00Cost of sales 13,697 65.81 13,374 66.31 43,497 66.20 43,340 66.55Gross margin 7,116 34.19 6,796 33.69 22,204 33.80 21,780 33.45Expenses:Selling, general and administrative 4,160 19.99 3,827 18.97 12,381 18.85 11,860 18.22Depreciation and amortization 475 2.28 433 2.15 1,378 2.10 1,284 1.97Operating income 2,481 11.92 2,536 12.57 8,445 12.85 8,636 13.26Interest – net 352 1.69 317 1.57 1,002 1.52 985 1.51Pre-tax earnings 2,129 10.23 2,219 11.00 7,443 11.33 7,651 11.75Income tax provision 513 2.46 524 2.59 1,789 2.72 1,818 2.79Net earnings $ 1,616 7.77 $ 1,695 8.41 $ 5,654 8.61 $ 5,833 8.96Weighted average common shares outstanding – basic 559 565 559 568Basic earnings per common share (1) $ 2.88 $ 2.99 $ 10.09 $ 10.24Weighted average common shares outstanding – diluted 560 566 560 569Diluted earnings per common share (1) $ 2.88 $ 2.99 $ 10.07 $ 10.22Cash dividends per share $ 1.20 $ 1.15 $ 3.55 $ 3.40Accumulated DeficitBalance at beginning of period $ (12,108) $ (14,342) $ (14,799) $ (15,637)Net earnings 1,616 1,695 5,654 5,833Cash dividends declared (673) (650) (1,991) (1,933)Share repurchases – (696) (29) (2,256)Balance at end of period $ (11,165) $ (13,993) $ (11,165) $ (13,993)
(1) Under the two-class method, earnings per share is calculated using net earnings allocable to common shares, which is derived by reducing net earnings by the earnings allocable to participating securities. Net earnings allocable to common shares used in the basic and diluted earnings per share calculation were 1,612 million for the three months ended October31, 2025, and 1,691 million for the three months ended November1, 2024. Net earnings allocable to common shares used in the basic and diluted earnings per share calculation were 5,639 million for the nine months ended October31, 2025, and 5,818 million for the nine months ended November1, 2024.
Lowe's Companies, Inc.Consolidated Statements of Comprehensive Income (Unaudited)In Millions, Except Percentage Data Three Months Ended Nine Months Ended October 31, 2025 November 1, 2024 October 31, 2025 November 1, 2024 Amount % Sales Amount % Sales Amount % Sales Amount % SalesNet earnings $ 1,616 7.77 $ 1,695 8.41 $ 5,654 8.61 $ 5,833 8.96Cash flow hedges – net of tax (7) (0.04) (3) (0.02) (14) (0.02) (9) (0.02)Other 1 – – – 1 – 1 -Other comprehensive loss (6) (0.04) (3) (0.02) (13) (0.02) (8) (0.02)Comprehensive income $ 1,610 7.73 $ 1,692 8.39 $ 5,641 8.59 $ 5,825 8.94
Lowe's Companies, Inc.Consolidated Balance Sheets (Unaudited)In Millions, Except Par Value Data October 31, 2025 November 1, 2024AssetsCurrent assets:Cash and cash equivalents $ 621 $ 3,271Short-term investments 412 335Receivables – net 1,216 108Merchandise inventory – net 17,183 17,566Other current assets 788 697Total current assets 20,220 21,977Property, less accumulated depreciation 18,309 17,586Operating lease right-of-use assets 4,345 3,771Long-term investments 280 312Deferred income taxes – net – 261Intangible assets – net 5,994 281Goodwill 3,982 311Other assets 323 244Total assets $ 53,453 $ 44,743Liabilities and shareholders' deficitCurrent liabilities:Current maturities of long-term debt $ 2,437 $ 2,576Current operating lease liabilities 691 497Accounts payable 10,236 10,602Accrued compensation and employee benefits 1,023 828Deferred revenue 1,537 1,359Other current liabilities 3,527 3,585Total current liabilities 19,451 19,447Long-term debt, excluding current maturities 37,498 32,906Noncurrent operating lease liabilities 4,070 3,741Deferred income taxes – net 808 -Deferred revenue – Lowe's protection plans 1,273 1,260Other liabilities 735 808Total liabilities 63,835 58,162Shareholders' deficit:Preferred stock, $5 par value: Authorized – 5.0 million shares; Issued and outstanding – none – -Common stock, $0.50 par value: Authorized – 5.6 billion shares; Issued and outstanding – 561 million and 565 million, respectively 280 282Capital in excess of par value 228 -Accumulated deficit (11,165) (13,993)Accumulated other comprehensive income 275 292Total shareholders' deficit (10,382) (13,419)Total liabilities and shareholders' deficit $ 53,453 $ 44,743
Lowe's Companies, Inc.Consolidated Statements of Cash Flows (Unaudited)In Millions Nine Months Ended October 31, 2025 November 1, 2024Cash flows from operating activities:Net earnings $ 5,654 $ 5,833Adjustments to reconcile net earnings to net cash provided by operating activities:Depreciation and amortization 1,557 1,461Noncash lease expense 405 392Deferred income taxes 24 (10)Loss on property and other assets – net 45 11Gain on sale of business – (97)Share-based payment expense 177 164Changes in operating assets and liabilities:Merchandise inventory – net 816 (672)Other operating assets 26 114Accounts payable 552 1,944Other operating liabilities (959) (426)Net cash provided by operating activities 8,297 8,714Cash flows from investing activities:Purchases of investments (1,290) (999)Proceeds from sale/maturity of investments 1,252 918Capital expenditures (1,610) (1,379)Proceeds from sale of property and other long-term assets 25 54Proceeds from sale of business – 97Acquisitions of businesses – net (10,055) -Other – net (9) (11)Net cash used in investing activities (11,687) (1,320)Cash flows from financing activities:Net proceeds from issuance of debt 6,974 -Repayment of debt (2,568) (522)Proceeds from issuance of common stock under share-based payment plans 82 95Cash dividend payments (1,963) (1,916)Repurchases of common stock (211) (2,681)Other – net (64) (20)Net cash provided by/(used in) financing activities 2,250 (5,044)Net (decrease)/increase in cash and cash equivalents (1,140) 2,350Cash and cash equivalents, beginning of period 1,761 921Cash and cash equivalents, end of period $ 621 $ 3,271

Lowe's Companies, Inc. Non-GAAP Financial Measure Reconciliation (Unaudited)

To provide additional transparency, the Company has presented the non-GAAP financial measure of adjusted diluted earnings per share for the three months ended October31, 2025 and November1, 2024. This measure excludes the impact of certain items, further described below, not contemplated in Lowe's Business Outlook to assist analysts and investors in understanding operational performance for the third quarter of fiscal 2025.

Fiscal 2025 Impacts During fiscal 2025, the Company recognized financial impacts from the following:

— In the third quarter of fiscal 2025, the Company recognized pre-tax expenses of $129 million consisting of transaction costs and intangible asset amortization related to the acquisition of Artisan Design Group and Foundation Building Materials (Acquisition of businesses).

Fiscal 2024 Impacts: During fiscal 2024, the Company recognized financial impacts from the following:

— In the third quarter of fiscal 2024, the Company recognized pre-tax income of $54 million consisting of a realized gain on the contingent consideration associated with the fiscal 2022 sale of the Canadian retail business (Canadian retail business transaction).

Adjusted diluted earnings per share should not be considered an alternative to, or more meaningful indicator of, the Company's diluted earnings per share as prepared in accordance with GAAP. The Company's methods of determining non-GAAP financial measures may differ from the method used by other companies and may not be comparable.

A reconciliation between the Company's GAAP and non-GAAP financial results is shown below and available on the Company's website at ir.lowes.com.

Three Months Ended October 31, 2025 November 1, 2024Adjusted Diluted Earnings Per Share Pre-Tax Tax 1 Net Pre-Tax Tax 1 Net Earnings Earnings Earnings EarningsDiluted Earnings Per Share, As Reported $ 2.88 $ 2.99Acquisition of businesses 0.23 (0.05) 0.18 – – -Canadian retail business transaction – – – (0.10) – (0.10)Adjusted Diluted Earnings Per Share $ 3.06 $ 2.89
1 Represents the corresponding tax benefit or expense specifically related to the items excluded from adjusted diluted earnings per share.

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SOURCE Lowe's Companies, Inc.

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