Lowe’s Q2 Beats; to acquire FBM for $8.8B to expand Pro

Lowe’s Companies posted a stronger-than-expected second quarter, reporting net earnings of about $2.4 billion and diluted earnings per share of $4.27, with adjusted diluted EPS at $4.33, surpassing year-ago results and analyst expectations. Revenue reached roughly $24 billion, up modestly from a year earlier, as the retailer benefited from steady demand across both professional contractors and do-it-yourself customers. Management also disclosed a major strategic expansion: an $8.8 billion all-cash acquisition of Foundation Building Materials, and a pending, value-enhancing integration designed to intensify Lowe’s footprint in the pro segment.

In the quarter, Lowe’s delivered a gross margin of 33.81%, up 34 basis points, and a gross profit of about $8.1 billion. However, operating margin narrowed slightly to 14.5%, reflecting ongoing investments in growth initiatives and the cost of integrating recent acquisitions. Comparable sales rose 1.1%, underscoring balanced strength in professional (Pro) and DIY channels, even as weather-related headwinds influenced performance early in the period. The company emphasized progress across its Pro strategy, noting that positive demand from...