Lowe’s (LOW) Q3 2025 earnings summary

Executive summary

• Q3 2024 sales were $20.2 billion, down 1.1% in comparable sales, with strong Pro and online growth offsetting soft DIY demand and benefiting from storm-related activity.

• Net earnings for Q3 were $1.7 billion, with diluted EPS of $2.99 and adjusted diluted EPS of $2.89, reflecting a $54 million gain from the Canadian business sale.

• Pro segment delivered high single-digit positive comps, while online sales grew 6% and mobile app traffic saw double-digit growth.

• DIY big-ticket discretionary demand remained soft, but smaller outdoor projects and storm recovery drove sales.

• $12 million pledged for hurricane relief, with significant disaster response and community support.

Financial highlights

• Gross margin was 33.69%, nearly flat year-over-year, with operating margin at 12.57% and net earnings margin at 8.41%.

• Adjusted operating margin was 12.3%, and adjusted SG&A was 19.2% of sales, impacted by storm-related expenses.

• Free cash flow was $728 million; $758 million in share repurchases and $654 million in dividends returned over $1.4 billion to shareholders in Q3.

• Year-to-date net cash from operating activities was $8.7 billion, supporting $1.4 billion in capital expenditures and $2.5 billion in share repurchases.

• Cash and cash equivalents at quarter-end were $3.27 billion.

Outlook and guidance

• FY2024 sales expected at $83–$83.5 billion, with comparable sales down 3% to 3.5% and adjusted operating margin at 12.3%–12.4%.

• Adjusted diluted EPS forecasted at $11.80–$11.90; capital expenditures projected at $2 billion; net interest expense at $1.3 billion.

• Modest storm-related demand anticipated in Q4, but underlying DIY demand remains pressured.

• Long-term demand drivers include home price appreciation, aging housing stock, and demographic trends.