Lowe’s (LOW) Q3 2025 earnings summary

Executive summary

• Q3 2024 net sales were $20.2 billion, down 1.5% year-over-year, with comparable sales down 1.1% due to soft DIY demand, partially offset by strong Pro and online sales and storm-related demand.

• 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 pre-tax gain from the 2022 Canadian retail business sale.

• High single-digit positive comps in the Pro segment, strong online sales, and smaller-ticket outdoor DIY projects contributed to better-than-expected results.

• The company pledged $12 million for hurricane relief and expressed support for communities impacted by Hurricanes Helene and Milton.

• Continued investment in the Total Home Strategy and productivity initiatives to drive long-term growth and market share.

Financial highlights

• Gross margin for Q3 was 33.69%, nearly flat year-over-year, benefiting from productivity initiatives but offset by storm-related pressures.

• Adjusted operating margin was 12.3%, with operating income at $2.54 billion (12.57% of sales).

• Adjusted SG&A was 19.2% of sales, delivering 86 basis points improvement versus prior year.

• Free cash flow was $728 million; year-to-date net cash from operating activities was $8.7 billion.

• Returned over $1.4 billion to shareholders in Q3 via dividends and share repurchases.

Outlook and guidance

• FY2024 sales expected at $83.0–$83.5 billion, with comparable sales down 3.0% to 3.5%.

• Adjusted operating margin forecasted at 12.3%–12.4%; adjusted diluted EPS outlook is $11.80–$11.90.

• Full-year net interest expense expected at $1.3 billion; capital expenditures at $2 billion.

• Scenario planning for 2025 and beyond to be discussed at the upcoming Analyst and Investor Conference.

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