Lowes CompaniesLOW

01On October 9, 2025, the Company completed the acquisition of FBM for an aggregate cash purchase price of $8.8 billion FBM strengthens the Company's Total Home strategy by expanding our offerings to Pro customers through enhanced capabilities, faster fulfillment, improved digital tools, a robust trade credit platform, and significant cross-selling opportunities between FBM and Lowe's On June 2, 2025, the Company completed the acquisition of ADG, a leading nationwide provider of design, distribution and installation services for interior surface finishes, including flooring, cabinets and countertops, to national, regional and local home builders and property managers, for an aggregate cash purchase price of $1.3 billion FBM operations are organized into two lines of business: Ceilings and Wall Systems and Commercial Doors and Hardware; ADG is deemed a separate operating segment, referred to as Interior Finishes

02Nine of our 13 product categories experienced positive comparable store sales, led by Rough Plumbing, Electrical, and Tools & Hardware Growth across these categories was driven by continued momentum with our Pro customer and online channels Online sales positively impacted second quarter fiscal 2026 comparable sales by approximately 195 basis points versus 85 basis points in Q2 fiscal 2025 Comparable average ticket increased 2.3%

03Perpetual Productivity Improvement initiatives continued to support disciplined cost management and strategic investments During the quarter, we progressed initiatives to simplify store and field communications, improve replenishment and inventory accuracy, enhance merchandising execution and enable associates to spend more time serving customers Cash flows from operating activities were approximately $7.0 billion for the first six months of fiscal 2026

04Lowe's balances deleveraging with aggressive capital return: repaying $2.4B of debt while raising the dividend and maintaining a $10.5B buyback authorization signals management confidence that free-cash-flow generation is resilient enough to fund shareholder return without impairing credit quality.