LOWE'S REPORTS THIRD QUARTER 2025 SALES AND EARNINGS RESULTS

Core Insights - Lowe's Companies, Inc. reported net earnings of $1.6 billion and diluted EPS of $2.88 for Q3 2025, a decrease from $2.99 in Q3 2024. Adjusted diluted EPS increased by 5.9% to $3.06 when excluding $129 million in pre-tax expenses related to acquisitions [1][19][20] Financial Performance - Total sales for the quarter reached $20.8 billion, up from $20.2 billion in the same quarter last year. Comparable sales increased by 0.4%, driven by an 11.4% growth in online sales and double-digit growth in home services and Pro sales [2][3] - Gross margin for the quarter was 34.19%, compared to 33.69% in the prior year, indicating improved profitability [13] - Operating income was $2.481 billion, representing 11.92% of sales, down from 12.57% in Q3 2024 [13] Capital Allocation - The company invested $8.8 billion in the acquisition of Foundation Building Materials and paid $673 million in dividends during the quarter [4][19] - Lowe's updated its full-year 2025 outlook, projecting total sales of $86.0 billion, adjusted operating margin of 12.1%, and adjusted diluted EPS of approximately $12.25 [5][9] Business Outlook - The company anticipates ongoing uncertainty in the macroeconomic environment, which has influenced its updated outlook for 2025 [5][9] - Lowe's continues to focus on enhancing its offerings to Pro customers following the recent acquisitions, aiming for sustainable long-term sales and profit growth [3][5] Operational Metrics - As of October 31, 2025, Lowe's operated 1,756 stores, covering 195.8 million square feet of retail space [3] - The company serves approximately 16 million customer transactions weekly, with total fiscal year 2024 sales exceeding $83 billion [7]