Lowe's Companies, Inc.

Thank you and good morning. Here with me today are Marvin Ellison, Chairman and Chief Executive Officer, Bill Bolts, our Executive Vice President, Merchandising, Joe McFarland, our Executive Vice President, Stores, and Brandon Sink, our Executive Vice President and Chief Financial Officer. As noted in our press release this morning announcing the definitive agreement to acquire FBM, there are accompanying slides to today's comments which will be referenced on today's call. I would like to remind you that our notices regarding forward-looking statements are included in our press releases and presentation that can be found on Lowe's Investor Relations website. During this call, we will be making comments that are forward-looking, including our expectations for fiscal 2025. Actual results may differ materially from those expressed or implied as a result of various risks, uncertainties, and important factors, including those discussed in the risk factors, MD&A, and other sections of our annual report on Form 10-K and our other SEC filings. Additionally, we'll be discussing certain non-GAAP financial measures. A reconciliation of these items to U.S. GAAP can be found on the quarterly earnings section of our investor relations website. Now, I'll turn the call over to Marvin.

Thank you, Katie, and good morning, everyone. This morning, we announced the acquisition of Foundation Building Materials, or FBM, a premier distributor of interior building products, including draw wall, metal framing, ceiling systems, insulation, commercial doors, and hardware, and other complimentary products. This acquisition represents a transformational move when it comes to advancing our total home strategy and enhancing long-term shareholder value. With the acquisition of FBM, we are strategically expanding our pro offering to serve the large pro, especially their plan spend. We're now well-positioned to not only continue driving growth with our core DIY and small to medium pro customers, But this acquisition also unlocks our ability to serve the larger pro within a $250 billion total addressable market. The acquisition of FBM strengthens our portfolio, diversifies our revenue streams, and allow us to capture a larger portion of pro sales, all of which is expected to deliver significant long-term value to our shareholders. Brandon and I will discuss this acquisition in more detail later in the call, but first, I'll turn to our results for the quarter. In the second quarter of 2025, we delivered sales of $24 billion with comparable sales up 1.1%. We drove solid performance in both pro and DIY and strengthened seasonal sales as weather improved throughout the quarter. In addition to sales growth, our persistent focus on productivity drove better than expected operating performance, leading to adjusted diluted earnings per share of $4.33, an increase of 5.6% over last year. And our Perpetual Productivity Improvement, or PPI, initiatives continue to deliver results we set out to achieve. This is a testament to the culture we built, prioritizing continuous improvement throughout the business. Later in the call, Bill and Joe will share specific examples of these initiatives. Across the board, we're pleased with the results we delivered as we continue to execute against our long-term strategy and invest in areas that position us for sustainable growth. Through our total home strategy, we were able to deliver continued pro-growth this quarter, stacking on top of strong mid-single-digit growth in Q2 of last year. Additionally, we grew our online sales by 7.5%, partly driven by a more immersive shopping experience and increased traction for my lowest rewards, which is helping us increase customer loyalty and drive repeat purchases. We also launched the first home improvement creator network with Mr. Beast, the world's most followed creator among the first to join. This network is aimed at partnering with influencers across social media, as trusted voices to drive brand engagement for our products and services. We're excited to see how our new creative network will enhance our connection with Gen Z and millennial customers. We're also continuing our marketing partnership with Lionel Messi, widely recognized as the best soccer player in the world, as well as our sponsorship of the NFL as the official home improvement partner. Turning to the macro environment, homeowners remain financially healthy supported by strong balance sheets, wage growth, and low unemployment. The medium to long-term outlook for the home improvement industry remains positive, driven by an aging housing stock, which is at a record high, substantial homeowner equity, and the pent-up demand from delayed projects. In fact, industry analysts estimate that there's roughly $50 billion of deferred project demand as many homeowners have delayed larger discretionary projects over the past few years. At the same time, an estimated 18 million new homes are needed by 2033. Together, these trends point to a healthy pipeline of demand for home improvement and new home construction ahead. That's why we're confident that our most recent investments and acquisitions will uniquely position us to accelerate sales growth when the market turns. Before closing, I would like to officially welcome the Artisan Design Group, or ADG, team to Lowe's. We closed on this acquisition in June, and we believe the future combination of ADG and FBM under the same umbrella will position Lowe's to offer large pro customers a full complement of interior finishes to meet their needs. I also want to thank our Lowe's frontline associates for their commitment to serving our customers, day in and day out. I love spending time in the stores where our frontline associates who remain the driving force behind our company. And with that, I turn it over to Bill.

Thanks, Marvin, and good morning, everyone. This quarter, we delivered positive comps in nine of our 14 merchandise divisions, driven by continued growth in pro and online and a solid recovery in our spring seasonal categories. Starting in hard lines, we delivered positive comps in hardware, lawn and garden, and tools, with widespread strength in key seasonal categories, especially as weather improved. We drove positive comps in lawn and garden, partly driven by a solid performance in live goods and the support of our growers as we navigated weather challenges early in the quarter. We also saw strength in Scott soils and fertilizers as customers responded to their great offers. Turning to tools, we delivered strong performance in power tools and tool storage. Customers gravitated toward our robust assortment and compelling offers, including buy one, get one free deals from brands like DeWalt, Craftsman, and Cobalt. Offers like these demonstrate our commitment to highlighting and delivering value for customers both online and in-store. Turning to building products, we drove positive comps across building materials, rough plumbing, and lumber as we're seeing continuing momentum in repair and maintenance projects. We saw broad-based strength in interior categories like plumbing repair, water heaters, and drywall, as well as in exterior categories like roofing, siding, and composite decking, where we offer the top three brands in treks, timber tech, and decorators. In home decor, we delivered positive comps in paint, flooring, and appliances, where we continue to build on our momentum with both positive sales dollars and unit comps this quarter, along with driving sales growth in all major appliance categories. Lowe's continues to offer unmatched value in appliances with the broadest assortment and next-day delivery available in virtually every zip code in the U.S. We're also pleased with our ongoing efforts to build out our powerful pro-brand lineup, making sure that we have the brands and products that are most important to these customers. Over the last few years, we've added brands like Klein Tools, Hubble, Wallboard Tools, and more. And today, we're excited to welcome Daltile to Lowe's, which is the best-selling tile brand in the country and the pro-preferred choice for tile across residential and commercial projects. Daltile offers direct-to-home and jobsite delivery, ensuring materials arrive when and where they're needed. As Marvin mentioned, we remain focused on driving our perpetual productivity improvement, or PPI, initiatives throughout the business. One example, we have enhanced our assortment planning tools for seasonal buys over the last few years. which is allowing us to better anticipate demand and optimize our inventory allocation. These enhancements have led to improved sell-through and less end-of-season clearance and ultimately improvement in gross margin. This brings me to our approach to managing the global sourcing environment. I'm pleased that the teams are executing our playbook well and ensuring that we maintain strong assortments and excellent value for our customers with the goal of remaining price competitive. Our merchants are making great progress working closely with our suppliers to help mitigate cost pressures while ensuring a stable supply for our shared customers and accelerating our country of origin diversification to reduce our single country dependency in any given product category. So as I wrap up, I want to thank our merchant team as well as our MST associates and our vendor partners for their continued efforts to deliver the results. And now, I'd like to turn the call over to Joe.