Lowe’s said that Foundation Building Materials is expected to accelerate the home improvement chain’s “Total Home” strategy by enhancing its offering to Pro customers through expanded capabilities, faster fulfilment, and improved digital tools.
Lowe’s (LOW) shares jumped 3% in premarket trading on Wednesday after the home improvement chain announced that it would buy Foundation Building Materials for about $8.8 billion to support the growth of its professional contractor business.
Foundation Building Materials is a North American distributor of interior building products, including drywall, metal framing, and complementary products, serving large residential and commercial professionals in both new construction and repair and remodel applications. The transaction is expected to close in the fourth quarter of 2025.
Retail sentiment on Lowe’s improved to ‘extremely bullish’ from ‘bullish’ territory, compared to a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.
Home improvement chains Lowe’s and Home Depot have been looking to scoop up professional service distributors to boost their business at a time when demand for home-related work has taken a setback due to the uncertain macro environment.
In April, Lowe’s bought Artisan Design for $1.33 billion, and in June, Home Depot said it would buy GMS for about $4.3 billion, a building products distributor.
Lowe’s said Foundation Building Materials is expected to accelerate the home improvement chain’s “Total Home” strategy by enhancing its offering to Pro customers through expanded capabilities, faster fulfillment, improved digital tools, and a robust trade credit platform. The company added that it would also result in significant cross-selling opportunities between Foundation Building Materials and Lowe’s, as well as the recently acquired Artisan Design.
Since 2011, Foundation Building Materials has grown and now has a network of over 370 locations in the United States and Canada, serving 40,000 Pro customers. In 2024, on a pro forma basis, the company generated about $6.5 billion in revenue and $635 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
Separately, Lowe’s also raised its full-year 2025 annual sales forecast to come between $84.5 billion and $85.5 billion, compared with the previous expectation of $83.5 billion to $84.5 billion.
The company’s second-quarter adjusted profit per share came in at $4.33, compared with estimates of $4.24, according to data compiled by Fiscal AI. Lowe’s quarterly revenue was $23.96 billion, compared with expectations of $23.99 billion.
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