AI Takeaway
Lowe's FY2025 revenue grew 3.1% to $86.3B, but net income fell 4.4% to $6.7B as SG&A expenses surged 7.1% and a major acquisition drove investing cash outflows up over 600%, while the company maintained strong operating cash flow of $9.9B.
Revenue
$86.29B
++3.12% YoY
EPS (Basic)
$11.87
-3.10% YoY
Gross Margin
33.5%
++0.16% YoY
Operating Income
$10.15B
-2.99% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Lowe's grew total revenue 3.1% year-over-year to $86.3B in FY2025, up from $83.7B in the prior year, reflecting continued demand in the home improvement sector despite a challenging macroeconomic backdrop.
Source: Source: 10-K Income Statement
Selling, General & Administrative expenses rose sharply by 7.1% to $16.8B (from $15.7B), outpacing revenue growth and compressing operating margin by approximately 74 basis points to 11.8%, contributing to a 3.0% decline in operating income to $10.2B.
Source: Source: 10-K Income Statement
Investing cash flow swung dramatically to -$12.3B from -$1.7B in the prior year, a 605.6% increase in outflows, suggesting a significant capital deployment event such as a major acquisition that also drove total assets up 25.6% to $54.1B.
Source: Source: 10-K Cash Flow Statement
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Upgrade to unlockLowe's carries $39.8B in long-term debt and has a negative stockholders' equity of -$9.9B, a structural feature of its aggressive capital return and buyback history. While equity improved 30.3% YoY, the debt-to-equity ratio remains deeply negative at -6.46, making the balance sheet sensitive to interest rate increases and credit market conditions.
Source: Source: 10-K Balance Sheet
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Upgrade to unlock| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $86.29B | $83.67B | +3.12% |
Cost of Revenue | $57.4B | $55.8B | +2.87% |
Gross Profit | $28.89B | $27.88B | +3.62% |
Operating Income | $10.15B | $10.47B | -2.99% |
Net Income | $6.65B | $6.96B | -4.36% |
EPS (Basic) | $11.87 | $12.25 | -3.10% |
EPS (Diluted) | $11.85 | $12.23 | -3.11% |
SG&A Expense | $16.79B | $15.68B | +7.07% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $54.14B | $43.1B | +25.62% |
Current Assets | $20.95B | $20.36B | +2.93% |
Total Liabilities | $64.06B | $57.33B | +11.73% |
Current Liabilities | $19.46B | $18.76B | +3.76% |
Stockholders' Equity | $-9.92B | $-14.23B | +30.31% |
Cash & Equivalents | $982M | $1.76B | -44.24% |
Long-Term Debt | $39.82B | $35.32B | +12.74% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $9.86B | $9.63B | +2.48% |
Investing Cash Flow | $-12.26B | $-1.74B | -605.64% |
Financing Cash Flow | $1.62B | $-7.05B | +123.00% |
Share Buybacks | $211M | $4.05B | -94.79% |
D&A | $2.19B | $1.97B | +11.26% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 33.5% | 33.3% | +0.16% |
Operating Margin | 11.8% | 12.5% | -0.74% |
Net Margin | 7.7% | — | — |
ROE | -67.1% | — | — |
ROA | 12.3% | — | — |
Current Ratio | $1.077 | — | — |
Debt to Equity | $-6.46 | — | — |
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Lowe's reported FY2025 revenue of $86.3B, up 3.1% year-over-year, but net income declined 4.4% to $6.7B as SG&A expenses surged 7.1%. Diluted EPS fell to $11.85 from $12.23, while operating cash flow remained strong at $9.9B.
The financial data strongly suggests Lowe's completed a significant acquisition in FY2025, as investing cash outflows surged to -$12.3B from -$1.7B the prior year (a 605.6% increase) and total assets jumped 25.6% to $54.1B. Share buybacks were also nearly halted, dropping 94.8% to just $211M, consistent with capital being redirected to fund a deal.
Lowe's revenue grew 3.1% but SG&A expenses rose 7.1% to $16.8B, growing at more than twice the rate of sales and compressing operating margin from 12.5% to 11.8%. This cost pressure, combined with potentially higher interest expenses from increased long-term debt ($39.8B), drove net income down 4.4% to $6.7B.
Lowe's carries $39.8B in long-term debt as of FY2025, up 12.7% from $35.3B the prior year, likely reflecting new borrowings to fund its major acquisition. The company has negative stockholders' equity of -$9.9B, a structural feature of its historical buyback program, and a current ratio of 1.08 indicating adequate but tight near-term liquidity.
Lowe's generated $9.9B in operating cash flow in FY2025, a 2.5% increase from $9.6B in the prior year, demonstrating the resilience of its core business cash generation despite lower reported net income. Cash and equivalents on the balance sheet, however, fell 44.2% to $982M, reflecting the large capital outflows for investing activities.