Lowe’s Firms, Inc. LOW reported second-quarter web earnings of $2.4 billion, or diluted Earnings Per Share (EPS) of $4.27, in comparison with $4.17 within the year-ago quarter.
Adjusted diluted EPS rose 5.6% to $4.33 from $4.10, topping analyst estimates of $4.24.
Quarterly gross sales reached $23.96 billion, in contrast with $23.59 billion a yr earlier, and got here in barely above Wall Road’s estimate of $23.96 billion. Comparable gross sales elevated 1.1%.
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Gross margin expanded 34 foundation factors to 33.81%, with gross revenue up 2.6% to $8.1 billion. Working margin narrowed by 15 foundation factors to 14.5%.
“This quarter, the corporate delivered constructive comp gross sales pushed by strong efficiency in each Professional and DIY,” mentioned Marvin R. Ellison, Lowe’s chairman, president and CEO. “In June, we closed on the acquisition of ADG, which strengthens our capability to seize a larger portion of Professional deliberate spend and expands our attain into the brand new dwelling building market.”
As of Aug. 1, 2025, Lowe’s operated 1,753 shops totaling 195.5 million sq. toes. Through the quarter, the corporate invested $1.3 billion within the Artisan Design Group (ADG) acquisition and paid $645 million in dividends.
First-half working money circulation was $7.6 billion, in contrast with $7.4 billion a yr earlier. Money and equivalents stood at $4.9 billion, with long-term debt of $30.54 billion and $4.2 billion in present maturities.
Outlook
Lowe’s up to date its fiscal 2025 steering to replicate the ADG acquisition. It now expects complete gross sales of $84.5 billion to $85.5 billion, raised from $83.5 billion to $84.5 billion, and forward of analyst estimates of $84.28 billion.
Comparable gross sales are projected to be flat to up 1% yr over yr. The corporate forecast working margin of 12.1% to 12.2% and adjusted working margin of 12.2% to 12.3%.
GAAP diluted EPS is anticipated at $12.10 to $12.35 versus analyst expectations of $12.29. Adjusted diluted EPS is projected at $12.20 to $12.45, raised from $12.15 to $12.40, in contrast with estimates of $12.29.
Capital expenditures are projected at roughly $2.5 billion.
Basis Constructing Supplies Acquisition
Lowe’s additionally introduced it has entered right into a definitive settlement to amass Basis Constructing Supplies (FBM) for about $8.8 billion, strengthening its Professional buyer providing.
The all-cash deal represents a 13.4× adjusted EBITDA a number of and is backed by $9.0 billion in absolutely dedicated bridge financing from Financial institution of America and Goldman Sachs. The transaction is anticipated to shut within the fourth quarter of 2025, pending regulatory approvals.
FBM serves greater than 40,000 Professional clients throughout over 370 places in america and Canada. On a professional forma foundation, it generated $6.5 billion in income and $635 million in adjusted EBITDA in 2024, with five-year compound annual development charges (CAGR) of 25% for income and 30% for adjusted EBITDA.
Lowe’s mentioned the acquisition enhances its Professional providing, will increase Professional penetration, and positions the corporate for sustainable development. “With this acquisition, we’re advancing our multi-year transformation of the Professional providing,” Ellison mentioned. FBM’s President and CEO, Ruben Mendoza, who will stay in place, added that combining with Lowe’s will present a extra complete resolution for Professional clients.
The deal is anticipated to be accretive to adjusted diluted EPS in its first full yr, excluding synergies.
Value Motion: LOW shares had been buying and selling increased by 3.08% to $264.25 premarket eventually test Wednesday.
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