Lowe's Companies, Inc.'s Stock Analysis

Lowe's Issues $5 Billion in Unsecured Notes for Financing

Lowe’s Companies, Inc. has issued $5.0 billion in unsecured notes, which include various series with differing maturity dates ranging from 2027 to 2035. The notes carry interest rates between 3.950% and 4.850% and will provide the company with net proceeds of approximately $4.97 billion after expenses. The notes are governed by an amended indenture and rank equally with the company’s existing unsecured senior debt, while also containing covenants that restrict subsidiary debt issuance but allow for additional company debt.

The issuance of these notes is not contingent upon the company’s planned acquisition of Foundation Building Materials, Inc. However, if the acquisition is not completed by August 19, 2027, or if the purchase agreement is terminated, Lowe's will be required to redeem all notes at a price of 101% of their principal amount. Additionally, in the event of a change of control, noteholders may require the company to repurchase their notes at a premium. The notes were sold under an underwriting agreement with several financial institutions, and the offering was registered under the Securities Act of 1933.

Sep 30, 2025 16:01:28

Lowe's Secures Financing for $8.8 Billion Acquisition Deal

Lowe’s Companies, Inc. has entered into a Stock Purchase Agreement to acquire ASP Flag Parent Holdings, Inc. for approximately $8.8 billion. To facilitate this acquisition, the company has established a $2.0 billion unsecured revolving loan facility and a $2.0 billion unsecured term loan facility, both arranged with Bank of America, N.A. These credit agreements will help finance part of the purchase price and support Lowe’s existing commercial paper program.

Additionally, Lowe’s has entered into a $1.0 billion unsecured revolving credit facility for general corporate purposes and has amended an existing credit agreement. The new financing arrangements replace a previous $4 billion bridge loan commitment, with up to $5 billion in bridge commitments remaining. The company plans to address these remaining commitments through capital market transactions before the acquisition closes.

Sep 19, 2025 09:10:28

Lowe's to Acquire Foundation Building Materials for $8.8 Billion

Lowe's Companies, Inc. has entered into a definitive agreement to acquire Foundation Building Materials, Inc. (FBM) for approximately $8.8 billion in cash. FBM is a leading distributor of interior building products in North America, serving a significant number of professional customers. The acquisition is expected to enhance Lowe’s offerings to professional customers and accelerate its Total Home strategy, which aims to improve service and fulfillment capabilities in the construction market. The transaction is subject to customary closing conditions and regulatory approval, and is anticipated to close in the fourth quarter of 2025.

To finance the acquisition, Lowe's has secured a $9 billion bridge loan facility and plans to use a combination of cash on hand, term loans, and capital market transactions. The acquisition is expected to be accretive to Lowe's adjusted diluted earnings per share in the first full year after closing, excluding any potential synergies. FBM generated approximately $6.5 billion in revenue in 2024 and has shown significant growth in recent years, positioning the combined entities for further expansion in the professional segment of the market.

Aug 20, 2025 06:18:36

Lowe's Reports Q2 2025 Earnings and Sales Growth

Lowe’s Companies, Inc. reported net earnings of $2.4 billion for the second quarter ended August 1, 2025, with a diluted earnings per share (EPS) of $4.27, up from $4.17 in the same quarter last year. The company experienced a 1.1% increase in comparable sales and total sales of $24.0 billion, reflecting positive performance in both professional and DIY segments despite initial weather challenges. The company incurred $43 million in pre-tax expenses related to the acquisition of Artisan Design Group, which impacted diluted EPS by $0.06, but adjusted diluted EPS increased 5.6% to $4.33 when excluding these expenses.

For the full year 2025, Lowe's updated its sales outlook to between $84.5 billion and $85.5 billion, up from the previous estimate of $83.5 to $84.5 billion. The company anticipates comparable sales growth to remain flat to up 1% year-over-year. Operating income as a percentage of sales is projected to be between 12.1% and 12.2%, slightly lower than prior guidance. Lowe's continues to focus on capital allocation, planning $2.5 billion in capital expenditures while returning $645 million to shareholders through dividends.

Aug 20, 2025 06:03:17

Lowe's Reports Q1 2025 Sales Drop and Earnings Decline

Lowe's Companies, Inc. reported net earnings of $1.6 billion for the first quarter of 2025, resulting in diluted earnings per share (EPS) of $2.92, down from $3.06 in the same quarter last year. Total sales decreased to $20.9 billion from $21.4 billion, with comparable sales dropping by 1.7%. The company noted that adverse weather conditions earlier in the quarter impacted sales, although there was some growth in Pro and online sales. Lowe's continues to focus on customer service, achieving the top ranking in customer satisfaction among home improvement retailers according to J.D. Power. The company operates 1,750 stores across the U.S. as of the end of the quarter.

Lowe's has affirmed its full-year outlook for 2025, projecting total sales between $83.5 billion and $84.5 billion, with comparable sales expected to be flat to a 1% increase compared to the previous year. The company plans to maintain an operating margin of 12.3% to 12.4%, with diluted EPS anticipated to be in the range of $12.15 to $12.40. Additionally, Lowe's declared a dividend payment of $645 million during the quarter, reflecting its commitment to returning value to shareholders.

May 21, 2025 08:47:56

Lowe's Q4 2024 Earnings Show Mixed Results and Adjustments

Lowe's reported net earnings of $1.1 billion for the fourth quarter of 2024, with diluted earnings per share (EPS) increasing to $1.99 from $1.77 in the same quarter last year. The company recognized an $80 million pre-tax gain from the sale of its Canadian retail business, which positively impacted the EPS by $0.06. Total sales for the quarter were $18.6 billion, with a modest comparable sales increase of 0.2%, influenced by strong performance in the Pro and online segments, as well as holiday sales, though offset by weaker DIY discretionary spending. Additionally, Lowe's awarded $80 million in bonuses to frontline associates for their contributions during the quarter.

On the downside, total sales for the fiscal year decreased to $83.7 billion from $86.4 billion the previous year. The company faced ongoing challenges in the home improvement market, leading to a cautious outlook for 2025, with expected comparable sales remaining flat to a slight increase. Operating income as a percentage of sales also declined, and the company reported a higher accumulated deficit of $14.8 billion compared to $15.6 billion in the prior year. Despite the positive EPS growth, the overall financial metrics indicate a need for strategic adjustments moving forward.

Feb 26, 2025 08:45:36

Lowe's Targets $83.5 Billion Sales Amid Mixed Financial Outlook

Lowe's Companies, Inc. has unveiled its 2025 Total Home Strategy, aimed at driving long-term growth and enhancing market share. Key initiatives include a focus on increasing Pro customer penetration, expanding online sales, and launching a new product marketplace, which will offer a broader range of products without the need for increased inventory. The company is also relaunching its Pro loyalty program and plans to open 10-15 new stores annually in growing markets, alongside extending its rural offerings to better serve communities.

However, the company anticipates a decline in comparable sales, with expectations of a decrease between 3.0% to 3.5% compared to the previous year. While it aims to achieve total sales of $83.0 to $83.5 billion, the financial outlook reflects uncertainties in the macroeconomic environment. The adjusted operating margin is projected to be between 12.3% and 12.4%, and the company will continue to focus on cost-saving initiatives, aiming for approximately $1 billion in annual savings.

Dec 11, 2024 06:01:35

Lowe's Reports $1.7 Billion Net Earnings for Q3 2024

Lowe's Companies, Inc. reported net earnings of $1.7 billion for the third quarter of 2024, with a diluted earnings per share (EPS) of $2.99. The company recognized a $54 million pre-tax gain from the sale of its Canadian retail business, contributing positively to the EPS. Total sales were $20.2 billion, slightly down from $20.5 billion in the same quarter last year, while adjusted diluted EPS, excluding the gain, stood at $2.89. The company also highlighted robust online sales and growth in professional sales despite a 1.1% decline in comparable sales due to reduced demand for larger DIY projects. 

On the negative side, comparable sales decreased by 1.1%, reflecting ongoing challenges in the DIY market, particularly for larger discretionary items. The company updated its full-year outlook, anticipating a decline in comparable sales of 3.0% to 3.5%. Additionally, the adjusted operating margin is projected to be slightly lower than previously estimated, indicating potential pressures on profitability. Despite these challenges, Lowe's emphasized its commitment to shareholder value through share repurchases and dividends, totaling $758 million and $654 million, respectively, during the quarter.

Nov 19, 2024 08:45:50

Lowe's Reports Mixed Q2 2024 Results Amid Sales Decline

Lowe's Companies, Inc. reported a net income of $2.4 billion for the second quarter of 2024, translating to a diluted earnings per share (EPS) of $4.17, a decrease from $4.56 in the same quarter last year. Although the company recognized a gain from the sale of its Canadian retail business, overall sales fell to $23.6 billion, down from $25.0 billion the previous year. The decline in comparable sales by 5.1% was attributed to reduced spending in the DIY sector and adverse weather affecting outdoor sales, although there were some positive trends in the Pro and online segments. CEO Marvin R. Ellison emphasized the company's strong operational performance and commitment to long-term investments despite current challenges in the market. 

Looking ahead, Lowe's has revised its full-year 2024 outlook, lowering its sales expectations from a previous range of $84 to $85 billion to $82.7 to $83.2 billion. The company now anticipates comparable sales to decline between 3.5% and 4.0%, a downgrade from earlier projections. Additionally, adjusted diluted EPS guidance has been lowered to approximately $11.70 to $11.90, down from $12.00 to $12.30. While Lowe's continues to prioritize shareholder value through share repurchases and dividends, the updated outlook reflects the ongoing pressures in the macroeconomic environment and the DIY market.

Aug 20, 2024 08:45:21

Lowe's Reports Q1 2024 Earnings with Sales Decline

Lowe's Q1 2024 earnings show a 4.1% decrease in comparable sales, with diluted EPS at $3.06. The company affirms its full-year outlook, focusing on gaining market share in key categories, expanding services, and thanking frontline staff. Despite a decline in sales, Lowe's remains committed to its Total Home strategy. The company repurchased shares and paid dividends during the quarter. Lowe's predicts total sales of $84-85 billion for 2024, with a slight decrease in comparable sales. The company's operating margin, EPS, and capital expenditures targets for the year are also outlined.

May 21, 2024 08:45:37