Lowe’s makes $8.8B acquisition; grows Q2 profits and sales
Lowe's Companies Inc. has made another deep dive into its pro business with a multi-billion dollar investment.
The home improvement giant has entered into a definitive agreement to acquire Foundation Building Materials, a North American distributor of interior building products, for $8 billion. The company's product categories include drywall, metal framing, ceiling systems, commercial doors and hardware, insulation and complementary products serving large residential and commercial professionals in both new construction and repair and remodel projects. (Lowe's also reported increases in its second-quarter net earnings and sales; see second part of article for more information.)
Since 2011, FBM has grown to operate a network of over 370 locations in the U.S. and Canada serving 40,000 Pro customers. In 2024, the company generated approximately $6.5 billion in revenue.
The deal comes as Lowe's has been focused on enhancing its pro business, including rolling out an updated version of its Pro loyalty program, with new features and functions. Also, In June 2025, Lowe’s completed its acquisition of Artisan Design Group, a nationwide provider of design, distribution and installation services for interior surface finishes to home builders and property managers, for $1.32 billion.
[READ MORE: Lowe’s bets big on home improvement professionals]
Lowe’s expects FBM to accelerate its "total home" strategy by enhancing its offering to pro customers through expanded capabilities, faster fulfillment, improved digital tools, a trade credit platform, and cross-selling opportunities between FBM and Lowe's as well as the newly acquired Artisan Design Group.
"With this acquisition, we are advancing our multi-year transformation of the Pro offering," said Marvin R. Ellison, Lowe's chairman, president and CEO. "It allows us to serve the large Pro planned spend within a $250 billion total addressable market and aligns perfectly with our Total Home strategy.”
Ruben Mendoza, president and CEO of FBM, and the senior leadership team will continue to lead FBM, and collaborate closely with Lowe's.
The company has secured $9 billion in a fully committed bridge financing from Bank of America, N.A. and Goldman Sachs & Co. LLC. Lowe's expects to finance the acquisition through a combination of short-term and long-term debt and intends to maintain its current credit ratings.
The transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions, including regulatory approval. Goldman Sachs & Co. LLC and Centerview Partners LLC are acting as financial advisors to Lowe's. Freshfields LLP is acting as legal advisor to Lowe's.
RBC Capital Markets is acting as sole financial advisor to FBM. Weil, Gotshal & Manges LLP is acting as legal advisor to FBM.
Lowe’s beats Street in Q2
Lowe's reported net earnings of $2.4 billion and diluted earnings per share (EPS) of $4.27 for the quarter that ended Aug. 1, compared to net earnings of $2.38 billion and diluted EPS of $4.17 in the year-ago period.
Total sales for the quarter were $24 billion, up about 2% from $23.6 billion in the prior-year quarter and comparable sales for the quarter increased 1.1%. Wall Street analysts had expected EPS of $4.24, while the company met predictions for total sales.
"This quarter, the company delivered positive comp sales driven by solid performance in both Pro and DIY," said Ellison. "Despite challenging weather early in the quarter, our teams drove both sales growth and improved profitability."
Full-year 2025 outlook
- Total sales of $84.5 to $85.5 billion (previously $83.5 to $84.5 billion).
- Comparable sales expected to be flat to up 1% as compared to prior year.
- Diluted earnings per share of approximately $12.10 to $12.35 (previously $12.15 to $12.40).
- Adjusted diluted earnings per share of approximately $12.20 to $12.45.
As of Aug. 1, 2025, Moorehead, N.C.-based Lowe's operated 1,753 stores.
