North Carolina, US-based home improvement retailer Lowe's Companies has posted net earnings of $2.4bn for the second quarter (Q2) of 2025, and total sales of $24bn.
Diluted earnings per share (EPS) were $4.27 for the quarter, an increase from $4.17 in the second quarter of 2024.
Comparable sales also saw a rise of 1.1%.
Lowe's chairman, president and CEO Marvin Ellison stated: "This quarter, the company delivered positive comp sales driven by solid performance in both Pro and DIY. Despite challenging weather early in the quarter, our teams drove both sales growth and improved profitability."
The company incurred $43m pre-tax expenses due to the acquisition of the Artisan Design Group (ADG), impacting second quarter diluted EPS by $0.06.
Adjusted diluted EPS, excluding the expenses, for the second quarter rose by 5.6% to $4.33, compared to the previous year.
For the full year 2025, Lowe's anticipates total sales between $84.5bn and $85.5bn, an increase from the previously forecasted $83.5bn to $84.5bn, while comparable sales are expected to range from flat to 1%.
The company projects an operating margin of between 12.1% and 12.2% and an adjusted operating margin between 12.2% and 12.3%.
Diluted EPS is forecasted to be between $12.10 and $12.35 and adjusted diluted EPS between $12.20 and $12.45.
In a strategic move, Lowe's has entered into a definitive agreement to acquire Foundation Building Materials (FBM) for $8.8bn.
FBM is set to accelerate Lowe's Total Home strategy, enhancing offerings to Pro customers with expanded capabilities, faster fulfilment, improved digital tools, a robust trade credit platform and cross-selling opportunities.
This acquisition, combined with Lowe's existing services and the recent ADG purchase, aims to create a leading platform to serve the large Pro market, especially in planned spend.
The acquisition of FBM will be financed through a mix of short-term and long-term debt, with Lowe's intending to maintain its current credit ratings.
The transaction is expected to close in Q4 2025, subject to regulatory approval and customary closing conditions.
The acquisition is anticipated to be accretive to adjusted diluted EPS in the first full year post-close, excluding synergies.
Ellison added: "With this acquisition, we are advancing our multi-year transformation of the Pro offering.
"It allows us to serve the large Pro planned spend within a $250bn total addressable market and aligns perfectly with our Total Home strategy. FBM's scaleable, multi-trade distribution platform and strong leadership combined with our recent acquisition of ADG will significantly enhance our Pro offering.”
