Core Insights - Lowe's Companies, Inc. is set to announce its third-quarter fiscal 2025 earnings on November 19, with revenue expectations at $20.9 billion, reflecting a 3.4% year-over-year growth, and earnings per share (EPS) estimated at $2.98, indicating a 3.1% increase from the previous year [1][9] Group 1: Earnings Performance - The Zacks Consensus Estimate for Lowe's revenues stands at $20.9 billion, implying a 3.4% growth from the prior year [1][9] - The consensus mark for earnings has decreased slightly to $2.98 per share, still suggesting a 3.1% increase from the year-ago period [1][9] - Lowe's has a trailing four-quarter earnings surprise of 2.9%, with the last reported quarter outperforming the Zacks Consensus Estimate by 2.4% [2] Group 2: Key Growth Drivers - Lowe's third-quarter performance is expected to benefit from its Pro-focused initiatives and the execution of its "Total Home" strategy, with strategic investments in expanding its Pro customer base yielding positive results [3] - Enhanced product assortments, improved in-stock positions, and better service capabilities through loyalty programs and job-site delivery enhancements are likely to support higher transaction volumes [3] - Digital execution remains a significant driver, with investments in technology improving customer experience and operational efficiency, particularly among Pro customers [4] Group 3: Financial Health and Challenges - Lowe's ongoing Perpetual Productivity Improvement initiatives may have contributed to margin enhancement, alongside robust cash generation and prudent capital allocation [5] - However, the company may face challenges from macroeconomic pressures, including higher interest rates and subdued housing turnover, which could temper discretionary spending in the home improvement market [6] - The company's Zacks Rank is 4 (Sell) with an Earnings ESP of -2.23%, indicating uncertainty regarding an earnings beat this quarter [8][9]

Core Insights - Lowe's Companies has completed the acquisition of Foundation Building Materials (FBM) for $8.8 billion, announced in August 2025, enhancing its service offerings to professional customers [1][2][5] - The acquisition aims to expand Lowe's market presence in key regions and align operations with Artisan Design Group, targeting a $250 billion total addressable market [2][3] - The deal is expected to support Lowe's strategy for sustainable sales growth and long-term shareholder value, with an anticipated demand for 16 million new homes in the US by 2033 [3] Company Overview - FBM, established in 2011 and headquartered in Santa Ana, California, operates over 370 locations across the US and Canada, while Lowe's operates more than 1,700 home improvement stores [4] - The leadership of FBM will remain under its founder, Ruben Mendoza, and the existing senior management team post-acquisition [3][4] Financial Performance - In Q2 2025, Lowe's reported net earnings of $2.4 billion and total sales of $24 billion, with diluted earnings per share increasing to $4.27 from $4.17 in Q2 2024 [5]

Core Insights - Lowe's has completed the acquisition of Foundation Building Materials (FBM), valued at approximately $8.8 billion, which was announced in late August [1][2] Group 1: Acquisition Details - The acquisition of FBM enhances Lowe's offerings for professional customers, with FBM operating 370 locations across the U.S. and Canada, distributing products such as metal framing, insulation, and commercial doors [2][3] - FBM will continue to operate under its existing senior leadership team, including founder Ruben Mendoza [3] Group 2: Strategic Implications - The acquisition is part of Lowe's Total Home strategy aimed at serving large professional customers within a $250 billion total addressable market [2] - Lowe's expects to expand its market penetration and capitalize on the anticipated recovery in housing, with an estimated 16 million new homes needed in the U.S. by 2033 [4] - The deal follows Lowe's earlier acquisition of Artisan Design Group, completed in June, indicating a strategic focus on expanding its professional customer base [3][4]

Core Insights - American Securities and CD&R have completed the sale of Foundation Building Materials, Inc. (FBM) to Lowe's Companies, Inc. for approximately $8.8 billion [1] Company Overview - FBM is a leading North American distributor of interior building products, including drywall, metal framing, ceiling systems, commercial doors and hardware, and insulation, serving both residential and commercial professionals [2][4] - Founded in 2011 and headquartered in Santa Ana, California, FBM operates over 370 locations across the U.S. and Canada [4] Financial Performance - Under the ownership of American Securities and CD&R, FBM has achieved significant growth, with a 27% annual revenue growth and a 31% annual EBITDA growth since its acquisition in 2021 [3]

Core Viewpoint - Lowe's Companies, Inc. has completed the acquisition of Foundation Building Materials (FBM), enhancing its offerings to professional customers and expanding its market presence in key regions [1][2][3]. Group 1: Acquisition Details - The acquisition of FBM is expected to enhance Lowe's product assortment, fulfillment speed, digital tools, and trade credit platform, providing significant growth opportunities [2][3]. - FBM operates over 370 locations across the U.S. and Canada, which complements Lowe's existing operations in key geographies such as California, the Northeast, and the Midwest [2][6]. - FBM will continue to be led by its founder, Ruben Mendoza, and its senior leadership team, ensuring continuity in service for Pro customers [3]. Group 2: Strategic Implications - This acquisition is a critical step in accelerating Lowe's Total Home strategy, targeting a $250 billion total addressable market [3]. - The combined efforts with FBM and the recent acquisition of Artisan Design Group (ADG) aim to create a comprehensive interior solutions platform for homebuilders [3]. - The housing market is projected to require 16 million new homes in the U.S. by 2033, positioning Lowe's to capitalize on this expected recovery [3]. Group 3: Company Overview - Lowe's operates over 1,700 home improvement stores and serves approximately 16 million customer transactions weekly, with total fiscal year 2024 sales exceeding $83 billion [5]. - The company employs around 300,000 associates and is based in Mooresville, North Carolina, focusing on community support and skilled trade development [5].

Core Insights - Lowe's Companies, Inc. reported second-quarter fiscal 2025 results with year-over-year growth in both revenue and earnings, returning to positive comparable sales during the quarter and updating its full-year outlook following the acquisition of Artisan Design Group (ADG) [1][11] Financial Performance - Adjusted earnings per share were $4.33, exceeding the Zacks Consensus Estimate of $4.23, marking a 5.6% increase from $4.10 in the same period last year [2] - Net sales reached $23,959 million, slightly missing the consensus estimate of $23,961 million but increasing from $23,586 million year-over-year, driven by a 1.1% rise in comparable sales [3] - Adjusted gross margin improved to 33.8%, up 37 basis points from the previous year, while adjusted selling, general and administrative expenses rose to $4,149 million, maintaining a stable percentage of net sales at 17.3% [4] - Adjusted operating income increased to $3,512 million from $3,404 million a year earlier, with the operating margin expanding 23 basis points to 14.7% [5] Strategic Developments - The acquisition of ADG enhances Lowe's ability to capture a larger share of Pro planned spending and strengthens its position in new home construction [6] - Lowe's announced an agreement to acquire Foundation Building Materials (FBM) for approximately $8.8 billion, which is expected to be accretive to adjusted earnings per share in the first full year post-close [7] Financial Health - As of the end of the quarter, Lowe's had cash and cash equivalents of $4,860 million, long-term debt of $30,548 million, and a shareholders' deficit of $11,400 million [8] - For the first half of fiscal 2025, operating cash flow totaled $7,610 million, with free cash flow at $6,597 million after capital expenditures of $1,013 million [9] Outlook - Management raised its full-year sales guidance to between $84.5 billion and $85.5 billion, with comparable sales expected to be flat to up 1% [11] - Earnings per share are projected to be in the range of $12.10 to $12.35, with adjusted earnings expected between $12.20 and $12.45 per share [12] Stock Performance - Lowe's shares have increased by 17.2% over the past month, outperforming the industry's rise of 13% [13]