Lowe's Reports $1.6B Net Earnings in Q3

By Ahmed Jameison • Wednesday, November 19 15:37 • Permanent Link

Lowe's Companies, Inc. has reported its third quarter 2025 sales and earnings results, with net earnings of $1.6 billion and diluted earnings per share (EPS) of $2.88, compared to diluted EPS of $2.99 in the third quarter of 2024. Adjusted diluted EPS1 for the third quarter of 2025 increased 5.9% to $3.06 compared to the prior year adjusted diluted EPS1. Total sales for the quarter were $20.8 billion, compared to $20.2 billion in the prior-year quarter, with comparable sales increasing by 0.4%.

The company recognized $129 million in pre-tax expenses associated with the acquisitions of Foundation Building Materials (FBM) and Artisan Design Group (ADG) during the third quarter. Excluding these expenses, third quarter 2025 adjusted diluted EPS1 showed an increase. Additionally, Lowe's operated 1,756 stores as of October 31, 2025, representing 195.8 million square feet of retail selling space.

Lowe's remains committed to a disciplined capital allocation strategy focused on driving long-term shareholder value. During the quarter, the company invested $8.8 billion for the acquisition of FBM and paid $673 million in dividends.

Looking ahead, Lowe's has updated its outlook for the operating results of full year 2025, including expectations for FBM. The updated outlook includes a range of metrics such as total sales, comparable sales, adjusted operating margin, net interest expense, effective income tax rate, adjusted diluted earnings per share, and capital expenditures.

The company's updated full year 2025 outlook includes total sales of $86.0 billion, with comparable sales expected to be flat as compared to the prior year. Adjusted operating income as a percentage of sales (adjusted operating margin) is projected to be 12.1%, net interest expense of approximately $1.4 billion, effective income tax rate of approximately 24.0%, and adjusted diluted earnings per share of approximately $12.25.

The market has reacted to these announcements by moving the company's shares 5.01% to a price of $230.58. If you want to know more, read the company's complete 8-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.