Lowe's Boosts Sales Outlook After Strong Q2, Acquires FBM for $8.8B
Home improvement retailer strengthens its professional construction offerings with a major acquisition and better-than-expected quarterly results.
Lowe's Companies, Inc. (NYSE: LOW) announced strong second-quarter 2025 earnings, an increased full-year sales forecast, and a significant strategic move to acquire Foundation Building Materials (FBM) for approximately $8.8 billion. The news signals a bullish outlook for the home improvement giant, as it seeks to fortify its position within the professional construction market.
The company reported a 1.1% increase in comparable sales for the second quarter, driven by solid performance in both its professional (Pro) and do-it-yourself (DIY) segments. In light of these results and the recent acquisition of Artisan Design Group (ADG), Lowe's has raised its full-year 2025 sales outlook to a range of $84.5 billion to $85.5 billion, up from the previous estimate of $83.5 billion to $84.5 billion.
"This quarter, the company delivered positive comp sales driven by solid performance in both Pro and DIY," said Marvin R. Ellison, Lowe's chairman, president, and CEO. "In June, we closed on the acquisition of ADG, which strengthens our ability to capture a greater portion of Pro planned spend and expands our reach into the new home construction market."
The acquisition of FBM, a leading North American distributor of interior building products, is another key component of Lowe's strategy to cater to professional customers. This move is expected to enhance the company's offerings through expanded capabilities, faster fulfillment, and improved digital tools. The transaction is anticipated to be accretive to Lowe's adjusted diluted earnings per share in the first full year after closing.
Following these announcements, Lowe's shares saw a positive response in the market. The company's updated guidance for the full year 2025 also includes an adjusted diluted earnings per share forecast of $12.20 to $12.45 and anticipated capital expenditures of approximately $2.5 billion. As of August 1, 2025, the company operated 1,753 stores.