Lowe's Companies, Inc.

Lowe's Companies, Inc. (LOW) reported fiscal year 2025 results ending January 30, 2026, with net sales of $86.29 billion. Gross margin was $28.89 billion after cost of sales of $57.40 billion. Operating income reached $10.15 billion, reflecting selling, general and administrative expenses of $16.79 billion and depreciation and amortization of $1.94 billion. Pre-tax earnings were $8.75 billion after $1.41 billion net interest expense, leading to net earnings of $6.65 billion and diluted earnings per share of $12. Compared to fiscal 2024, net earnings declined from $6,957 million to $6,654 million, with reported diluted EPS at $11.85 versus $12.23 prior year; adjusted diluted EPS improved to $12.28 from $11.99, excluding $321 million pre-tax acquisition costs for Artisan Design Group and Foundation Building Materials. The balance sheet showed total assets of $54.14 billion, including $20.95 billion in current assets (cash and equivalents $982.0 million, inventory $17.30 billion) and $9.85 billion in goodwill and intangibles. Liabilities totaled $64.06 billion, driven by $37.49 billion long-term debt and $2.43 billion current maturities, resulting in shareholders' deficit of -$9.92 billion. Operating cash flow generated $9.86 billion, while investing activities consumed $12.26 billion, primarily from $10.09 billion net business acquisitions and $2.21 billion capital expenditures. Financing activities provided $1.62 billion, including $6.97 billion debt proceeds offset by $2.64 billion dividends and $2.59 billion repayments. Cash decreased by $779 million. Management states liquidity from operations and capital markets supports operations, growth investments, shareholder returns, and debt obligations for the next 12 months, with $1.0 billion cash and $5.0 billion undrawn revolver capacity as of January 30, 2026. ROIC was 26.1%, down from 32.0%.

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