Lowe’s (LOW) Q4 2025 earnings summary

Executive summary

• Q4 sales reached $18.6 billion with net earnings of $1.1 billion and diluted EPS of $1.99, driven by strong Pro segment and online growth, despite ongoing pressure in DIY discretionary spending.

• Full-year 2024 sales were $83.7 billion, with adjusted EPS of $11.99 and net earnings of $7.0 billion.

• Strategic investments in digital, loyalty programs, AI, and supply chain enhancements are supporting growth and customer engagement.

• $80 million in discretionary year-end bonuses awarded to frontline associates.

• The company remains focused on productivity and cost control through Perpetual Productivity Initiatives (PPI).

Financial highlights

• Q4 comparable sales rose 0.2% year-over-year; gross margin increased to 32.9%, and operating margin improved to 9.9%.

• Q4 adjusted diluted EPS was $1.93, excluding an $80 million pre-tax gain from the Canadian retail business sale.

• Full-year 2024 sales totaled $83.7 billion, with comparable sales down 2.7% and adjusted EPS at $11.99.

• Full-year free cash flow was $7.7 billion; $6.5 billion returned to shareholders via buybacks and dividends.

• Q4 average ticket was $102.08, up 1.5% year-over-year; transactions down 1.3%.

Outlook and guidance

• 2025 sales expected between $83.5–$84.5 billion; comparable sales flat to up 1%.

• Operating margin forecasted at 12.3%–12.4%; full-year diluted EPS expected at $12.15–$12.40.

• Capital expenditures projected at $2.5 billion, with 5–10 new store openings planned.

• Q1 comp sales and operating margin expected below full-year guidance due to weather and timing of investments.

• Management remains confident in long-term home improvement sector recovery.