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2025 Annual Report
Solving problems and fulfilling dreams for the home Lowe's Companies, Inc. (NYSE: LOW) is a FORTUNE 100 home improvement company with total fiscal year 2025 sales of more than $86 billion. Lowe's employs approximately 300,000 associates and operates over 1,750 home improvement stores, 540 branches and 120 distribution centers. Based in Mooresville, N.C., Lowe's supports the communities it serves through programs focused on creating safe, affordable housing, improving community spaces, helping to develop the next generation of skilled trade experts and providing disaster relief to communities in need. For more information, visit Lowes.com.
Dear Shareholders, Despite ongoing challenges in the housing macroenvironment in 2025, we are pleased with the execution and performance of our company. This year, the company delivered sales of $86.3 billion, with positive comparable sales of 0.2%. We maintained our rigorous focus on expense management, which has become a hallmark of this leadership team. We are also effectively integrating emerging AI technology to enhance the customer and associate experience and improve operating efficiency. Beginning with driving Pro penetration, we delivered another year of positive comparable sales in Pro. In March, we launched our redesigned Pro loyalty program, MyLowe s Pro Rewards. This intuitive program is designed specifically for smallto-medium Pros, who earn rewards from the first dollar spent at Lowe s. We re pleased to see greater utilization, which is driving repeat purchases and higher spending. With our enterprisewide commitment to driving productivity, we delivered strong bottom-line performance as well, with adjusted operating margin1 of 12.1% and adjusted diluted earnings per share of $12.28. The company generated $7.7 billion in free cash flow and returned $2.6 billion in dividends to shareholders through our disciplined capital allocation strategy. These results demonstrate that our Total Home strategy is working, as we made meaningful progress against each of the key growth objectives: We also began the multiyear buildout of the Pro Extended Aisle, which gives our Pro sales associates instant access to our suppliers catalogs. By leveraging our suppliers expanded product assortments, greater inventory depth and delivery capabilities, we are capturing more Pro planned spend. We look forward to adding new suppliers and new markets every week in 2026, which will create meaningful growth opportunities in the years ahead. Drive Pro penetration Accelerate online sales Expand home services This year, we accelerated online sales with growth of 8.8%, which now represents 13% of our retail sales. We saw an increase in both traffic and conversion, driven by a more immersive shopping experience and flexible fulfillment options. In collaboration with OpenAI, we also launched Mylow, the first AI-powered home improvement virtual Create a loyalty ecosystem Increase space productivity 1 Adjusted operating margin, adjusted diluted earnings per share (EPS) and free cash flow are non-GAAP financial measures. Refer to the Non-GAAP Financial Measures Reconciliation section for additional information as well as reconciliations between the Company s GAAP and non-GAAP financial results. 2025 ANNUAL REPORT 1 LOWE S COMPANIES, INC.
adviser. Now when our customers engage Mylow with questions about their order, conversion rates double. Finally, as Pros shift more of their shopping online, they are increasingly relying on our digital tools tailored to their needs. half of the year. Through tech-enabled solutions, we ve transformed the customer journey from a cumbersome, time-consuming process to a seamless experience. We ve accelerated the process from inquiry to completed installation by providing intuitive options for scheduling, quoting and payment. We re confident that we re well positioned to meet the needs of our do-it-for-me customers with costeffective solutions for convenient installations. In June, we introduced the first Home Improvement Creator Network, with MrBeast, the world s mostfollowed creator, among the first to join. These influencers inspired customers to line up at our stores on Black Friday for our Golden Ticket event and they drove viral moments around trending product offers. Through MyLowe s Rewards and MyLowe s Pro Rewards, we re also creating a loyalty ecosystem that will help us tailor more personalized, value-enhancing offers through data-driven marketing. MyLowe s Rewards now has over 30 million members, who shop twice as often and spend over 50% more than nonmembers. Lowe s is the only home improvement retailer with a separate loyalty program for Pro and DIY customers, which is a distinct competitive advantage. Looking ahead, we re also pleased with the ongoing expansion of our online Marketplace. This will allow us to continue to extend our product assortments to offer our customers everything they need for their homes, across the price spectrum, without assuming the risk of owning the inventory. In 2025, we expanded Home Services, with highsingle-digit growth year-over-year in the second 2025 ANNUAL REPORT 2 LOWE S COMPANIES, INC.
We made significant progress towards increasing space productivity, with a 15% reduction of our in-store SKU count, which created space for more high-velocity items. We extended our rural assortment to 150 more stores, bringing the total to nearly 500 stores. We also rolled out workwear showrooms and pet grab-and-go assortments in 1,000 stores. These initiatives help us take advantage of our larger store footprints to create a more convenient shopping experience for our busy customers. are a tribute to the dedication of our frontline associates and their steadfast commitment to serving our customers. In 2025, the company made two acquisitions to further enhance our Pro offering and expand into a $250 billion total addressable market. In June, we acquired Artisan Design Group or ADG for $1.3 billion. ADG is a leading nationwide provider of design, distribution and installation services for interior surface finishes, including flooring, cabinets and countertops. ADG serves national, regional and local homebuilders and property managers. We continue to elevate the customer experience through new training programs for our frontline associates, as well as our AI-powered Mylow Companion, which is the same technology available in Mylow online. In fact, when associates use Mylow Companion to help customers, we re seeing satisfaction scores increase 200 basis points. In October, we acquired Foundation Building Materials or FBM for $8.8 billion. FBM is a leading distributor of drywall, metal framing, ceiling systems and commercial doors and hardware. FBM serves a diverse, large Pro customer base with Our efforts are also being recognized externally. J.D. Power named Lowe s #1 in customer satisfaction among home improvement retailers, and Lowe s was ranked the #1 Specialty Retailer on Fortune s World s Most Admired Companies list. These recognitions 2025 ANNUAL REPORT 3 LOWE S COMPANIES, INC.
 • shareholder letter icon 4/16/2026 Letter Continued (Full PDF)
 • stockholder letter icon 4/13/2023 LOW Stockholder Letter
 • stockholder letter icon 4/18/2024 LOW Stockholder Letter
 • stockholder letter icon 4/17/2025 LOW Stockholder Letter
 • stockholder letter icon More "Home Improvement Stores" Category Stockholder Letters
 • Benford's Law Stocks icon LOW Benford's Law Stock Score = 94


LOW Shareholder/Stockholder Letter Transcript:

2025
Annual Report

Solving problems
and fulfilling dreams
for the home
Lowe's Companies, Inc. (NYSE: LOW) is a FORTUNE   100 home improvement
company with total fiscal year 2025 sales of more than $86 billion. Lowe's employs
approximately 300,000 associates and operates over 1,750 home improvement stores,
540 branches and 120 distribution centers. Based in Mooresville, N.C., Lowe's supports
the communities it serves through programs focused on creating safe, affordable
housing, improving community spaces, helping to develop the next generation of
skilled trade experts and providing disaster relief to communities in need.
For more information, visit Lowes.com.

Dear Shareholders,
Despite ongoing challenges in the housing macroenvironment
in 2025, we are pleased with the execution and performance of
our company. This year, the company delivered sales of $86.3
billion, with positive comparable sales of 0.2%. We maintained
our rigorous focus on expense management, which has become
a hallmark of this leadership team. We are also effectively
integrating emerging AI technology to enhance the customer
and associate experience and improve operating efficiency.
Beginning with driving Pro penetration, we
delivered another year of positive comparable
sales in Pro. In March, we launched our redesigned
Pro loyalty program, MyLowe   s Pro Rewards. This
intuitive program is designed specifically for smallto-medium Pros, who earn rewards from the first
dollar spent at Lowe   s. We   re pleased to see greater
utilization, which is driving repeat purchases and
higher spending.
With our enterprisewide commitment to driving
productivity, we delivered strong bottom-line
performance as well, with adjusted operating
margin1 of 12.1% and adjusted diluted earnings
per share of $12.28. The company generated $7.7
billion in free cash flow and returned $2.6 billion in
dividends to shareholders through our disciplined
capital allocation strategy.
These results demonstrate that our Total Home
strategy is working, as we made meaningful
progress against each of the key growth objectives:
We also began the multiyear buildout of the
Pro Extended Aisle, which gives our Pro sales
associates instant access to our suppliers    catalogs.
By leveraging our suppliers    expanded product
assortments, greater inventory depth and delivery
capabilities, we are capturing more Pro planned
spend. We look forward to adding new suppliers
and new markets every week in 2026, which will
create meaningful growth opportunities in the
years ahead.
Drive Pro penetration
Accelerate online sales
Expand home services
This year, we accelerated online sales with growth
of 8.8%, which now represents 13% of our retail sales.
We saw an increase in both traffic and conversion,
driven by a more immersive shopping experience
and flexible fulfillment options.
In collaboration with OpenAI,
we also launched Mylow, the first
AI-powered home improvement virtual
Create a loyalty ecosystem
Increase space productivity
1
 Adjusted operating margin, adjusted diluted earnings per share (EPS) and free cash flow are non-GAAP financial measures. Refer to the    Non-GAAP Financial
Measures Reconciliation    section for additional information as well as reconciliations between the Company   s GAAP and non-GAAP financial results.
2025 ANNUAL REPORT
1
LOWE   S COMPANIES, INC.

adviser. Now when our customers engage Mylow
with questions about their order, conversion rates
double. Finally, as Pros shift more of their shopping
online, they are increasingly relying on our digital
tools tailored to their needs.
half of the year. Through tech-enabled solutions,
we   ve transformed the customer journey from a
cumbersome, time-consuming process to a seamless
experience. We   ve accelerated the process from
inquiry to completed installation by providing intuitive
options for scheduling, quoting and payment.
We   re confident that we   re well positioned to meet
the needs of our do-it-for-me customers with costeffective solutions for convenient installations.
In June, we introduced the first Home Improvement
Creator Network, with MrBeast, the world   s mostfollowed creator, among the first to join. These
influencers inspired customers to line up at our
stores on Black Friday for our    Golden Ticket   
event     and they drove viral moments around
trending product offers.
Through MyLowe   s Rewards and
MyLowe   s Pro Rewards, we   re
also creating a loyalty ecosystem
that will help us tailor more
personalized, value-enhancing
offers through data-driven
marketing. MyLowe   s Rewards
now has over 30 million members, who shop twice as
often and spend over 50% more than nonmembers.
Lowe   s is the only home improvement retailer with a
separate loyalty program for Pro and DIY customers,
which is a distinct competitive advantage.
Looking ahead, we   re also pleased with the ongoing
expansion of our online Marketplace. This will allow
us to continue to extend our product assortments to
offer our customers everything they need for their
homes, across the price spectrum, without assuming
the risk of owning the inventory.
In 2025, we expanded Home Services, with highsingle-digit growth year-over-year in the second
2025 ANNUAL REPORT
2
LOWE   S COMPANIES, INC.

We made significant progress towards increasing
space productivity, with a 15% reduction of our
in-store SKU count, which created space for more
high-velocity items. We extended our rural assortment
to 150 more stores, bringing the total to nearly 500
stores. We also rolled out workwear showrooms and
pet grab-and-go assortments in 1,000 stores. These
initiatives help us take advantage of our larger store
footprints to create a more convenient shopping
experience for our busy customers.
are a tribute to the dedication of our frontline
associates and their steadfast commitment to
serving our customers.
In 2025, the company
made two acquisitions to
further enhance our Pro
offering and expand into a
$250 billion total addressable
market. In June, we acquired
Artisan Design Group or ADG for $1.3 billion. ADG is
a leading nationwide provider of design, distribution
and installation services for interior surface finishes,
including flooring, cabinets and countertops. ADG
serves national, regional and local homebuilders and
property managers.
We continue to elevate the customer experience
through new training programs for our frontline
associates, as well as our AI-powered Mylow
Companion, which is the same technology available
in Mylow online. In fact, when associates use
Mylow Companion to help customers, we   re seeing
satisfaction scores increase 200 basis points.
In October, we acquired
Foundation Building
Materials or FBM for
$8.8 billion. FBM is a
leading distributor of drywall, metal framing, ceiling
systems and commercial doors and hardware.
FBM serves a diverse, large Pro customer base with
Our efforts are also being recognized externally.
J.D. Power named Lowe   s #1 in customer satisfaction
among home improvement retailers, and Lowe   s was
ranked the #1 Specialty Retailer on Fortune   s World   s
Most Admired Companies list. These recognitions
2025 ANNUAL REPORT
3
LOWE   S COMPANIES, INC.


shareholder letter icon 4/16/2026 Letter Continued (Full PDF)
 

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