Lowe's Companies, Inc. (NYSE: LOW) has announced its financial results for the third quarter of 2025, showcasing a resilient performance amid economic challenges. The company reported net earnings of $1.6 billion, translating to diluted earnings per share (EPS) of $2.88 for the quarter ending October 31, 2025. This marks a slight decline from the diluted EPS of $2.99 reported in the same quarter of 2024. However, when excluding pre-tax expenses associated with recent acquisitions, adjusted diluted EPS increased by 5.9%, reaching $3.06 compared to the previous year's adjusted figure.

1. Financial Highlights

Sales Performance

Lowe's total sales for the quarter amounted to $20.8 billion, up from $20.2 billion in the third quarter of 2024. The company experienced a modest increase in comparable sales, up 0.4%, primarily driven by a remarkable growth of 11.4% in online sales, alongside double-digit growth in home services and continued expansion in Pro sales.

Strategic Acquisitions

During the quarter, Lowe's recognized $129 million in pre-tax expenses linked to its acquisitions of Foundation Building Materials (FBM) and Artisan Design Group (ADG). CEO Marvin R. Ellison expressed optimism about the potential benefits of these acquisitions, stating, "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."

Store Operations

As of October 31, 2025, Lowe's operated 1,756 stores, providing 195.8 million square feet of retail selling space. This expansive reach supports the company’s strategic initiatives to cater to a diverse range of customer needs.

2. Capital Allocation Strategy

Lowe's remains committed to a disciplined capital allocation strategy aimed at enhancing long-term shareholder value. In the third quarter, the company invested $8.8 billion for the acquisition of FBM and distributed $673 million in dividends to its shareholders.

3. Updated Business Outlook

In light of ongoing macroeconomic uncertainties, Lowe's has revised its outlook for the full year 2025. The updated guidance includes:

Total Sales: Projected at $86.0 billion, an increase from the previous forecast of $84.5 to $85.5 billion.

Comparable Sales: Expected to remain flat compared to the previous year, adjusted from a prior estimate of flat to a +1% increase.

Adjusted Operating Income Margin: Projected at 12.1%, down slightly from the earlier estimate of 12.2% to 12.3%.

Net Interest Expense: Expected to be approximately $1.4 billion, revised from a previous estimate of $1.3 billion.

Effective Income Tax Rate: Estimated at 24.0%, down from 24.5%.

Adjusted Diluted EPS: Projected at approximately $12.25, slightly up from the prior range of $12.20 to $12.45.

Capital Expenditures: Expected to reach up to $2.5 billion.

4. Conference Call Details

To further discuss the third-quarter results and outlook, Lowe's will host a conference call on Wednesday, November 19, at 9 a.m. ET. Interested parties can access the call via webcast on Lowe's investor relations website.

5. Conclusion

Lowe's Companies, Inc. continues to navigate a complex economic landscape while focusing on strategic growth through acquisitions and enhanced customer offerings. With a solid financial foundation and a commitment to shareholder value, the company is poised to adapt and thrive in the evolving home improvement market.

Original press release