When Lowe’s and Home Depot report earnings, contractors should pay attention. These two Big Box retailers set the tone for how the entire home improvement industry perceives supply, demand, and customer behavior.
Their Q2 2025 results came in stronger than expected, and while both companies tell a slightly different story, the signals for contractors and installers are clear: opportunity is still here, but it’s shifting.
Lowe’s Q2 2025: Expanding Reach and Betting on Pro
Lowe’s delivered better-than-anticipated sales, with growth driven in part by a sharper focus on the professional contractor segment. Their most notable announcement: the acquisition of Foundation Building Materials, complementing the earlier ADG acquisition. Together, these moves signal Lowe’s intent to strengthen its ability to serve the “complex Pro”: contractors managing bigger, multifaceted jobs across multiple trades.
Lowe’s Q2 2025 Financial Highlights
- Total Revenue (Sales): Approximately $23.96 billion, or rounded to $24.0 billion, marking a 1.6% year-over-year increase from the previous year’s quarter.
- Comparable (Same-Store) Sales Growth: +1.1%, aligned with analyst expectations.
- Net Income: About $2.4 billion, representing a slight increase of 0.6% year-over-year.
Other highlights from Lowe’s earnings call include:
- Trade Credit and Delivery Enhancements: Lowe’s is improving financing and logistics capabilities tailored to Pro customers.
- Strong Non-Discretionary Categories: Homeowners continue to defer large financed remodels, but demand for roofing, HVAC, and water heaters remains steady.
- Pro Market Penetration: Lowe’s is betting its future growth on capturing more share of Pro spend, especially in categories where it has historically lagged behind Home Depot.
Takeaway for Contractors
Lowe’s is sending a clear signal: if you’re a Pro contractor, they want your business.
By engaging with Lowe’s Pro programs, contractors can access better pricing, trade credit, and streamlined delivery. Those who position themselves for replacement work (like roofing, HVAC, water heaters) will ride the steady demand Lowe’s is aligning itself to capture.
Home Depot Q2 2025: Scaling SRS and Driving E-Commerce
Home Depot also reported better-than-expected revenue, with a key highlight being sequential growth from June to July. Normally, this period is flat, so any momentum here suggests underlying stability in the market despite overall uncertainty.
Home Depot Q2 2025 Financial Highlights
- Total Revenue: $45.3 billion, representing a 4.9% year-over-year increase from Q2 2024.
- Comparable (Same-Store) Sales Growth: U.S. comps: +1.4%
- Net Earnings: $4.6 billion: nearly unchanged from Q2 2024.
The centerpiece of Home Depot’s long-term growth strategy continues to be its SRS acquisition, which it is scaling with surprising effectiveness. But that’s not all: in June, Home Depot also announced its planned acquisition of GMS Inc., a leading distributor of wallboard, ceilings, and related construction products.
Together, SRS and GMS give Home Depot unprecedented reach across multiple product verticals, embedding the company even deeper into the contractor supply chain.
Other highlights from Depot’s results include:
- E-Commerce Surge: Online sales growth exceeded expectations. More Pro contractors are ordering online, and this shift looks permanent, driving efficiency and convenience for contractors.
- Big-Ticket Deferrals: Similar to Lowe’s, Depot noted that large, financed projects remain under pressure. Smaller projects and nondiscretionary replacements are carrying the load.
- Pro Focus: Depot continues to invest heavily in expanding its Pro services (delivery, logistics, and support) to cement its role as the go-to partner for contractors.
Takeaway for Contractors
Home Depot is doubling down on its contractor ecosystem. Pros who lean into Depot’s logistics and online ordering tools can save time, gain consistency, and access more competitive pricing.
Now is also the time to prepare for deferred demand: when interest rates ease, the pipeline of postponed big projects could open quickly. Contractors ready to scale will capture that growth first, especially those who can adapt to the ever shrinking supply of skilled labor.
Industry-Wide Signals Both Retailers Agree On
While Lowe’s and Home Depot have their differences, their earnings reports share some common themes contractors should not ignore:
Small Projects Are Holding, Big Projects Delayed
High interest rates are pushing homeowners toward smaller jobs, but nondiscretionary replacements (roofing, HVAC, water heaters) remain resilient.
Homeowners Staying Put
With the average U.S. home at 41 years old and housing turnover down, remodeling spend is projected to hit $608 billion in 2025. Homeowners are investing in where they are, not where they’re going. US consumers are sitting on $34 Trillion in equity, which sets them up to dip into lending for remodeling projects.
Consolidation and Scale
The industry is experiencing margin pressure reminiscent of the 1970s stagflation era, with consolidation reshaping supply chains. Retailers are using acquisitions and technology to strengthen their hold on the market.
E-Commerce Growth
The rise of online purchasing for building products has accelerated, with adoption curves that mirror the digital music surge of the early 2000s. Once customer behavior shifts this far, it rarely reverses.
How Contractors Can Respond
The Q2 earnings from Lowe’s and Home Depot highlight a market that’s steady but cautious. Homeowners are prioritizing essential repairs over big remodels, retailers are investing heavily in their Pro ecosystems, and online purchasing habits are becoming permanent.
For contractors, the message is clear: success depends on adapting to these shifts and positioning your business for both today’s needs and tomorrow’s rebound.
Here are four practical steps to consider:
Double Down on Essentials
Non Discretionary categories like roofing, HVAC, water heaters, are projects that homeowners can’t defer.
Build Retail Partnerships
Strengthen relationships with Lowe’s and Home Depot Pro programs. These offer advantages that can make you more competitive, leverage better pricing, logistics, and credit.
Adopt E-Commerce Practices
Make online customer self-scheduling part of your workflow to save time and lock in consistency.
Prepare for the Rebound
If rate cuts materialize, pent-up demand for larger remodels will surface quickly. Contractors who prepare now will be ready to scale when demand shifts.
Where Cilio Fits In
Contractors and installers are facing an environment defined by deferrals, consolidation, and heightened expectations for efficiency. That’s where Cilio comes in.
Retail Alignment
As Lowe’s and Home Depot expand their Pro and Home Services ecosystems, Cilio integrates seamlessly with those workflows to help contractors stay connected to the supply chains and retailers shaping the industry.
Post-Sale Production Management
Unlike CRMs that focus on leads, Cilio helps contractors manage what happens after the sale. This is a part of the process that makes or breaks the customer experience.
Scalable for Any Contractor
From small remodeling crews to national subcontractor networks, Cilio helps you run projects on time, on budget, and consistently.
Future-Ready Operations
When deferred demand comes rushing back, contractors already using Cilio’s platform will have the systems in place to handle growth without bottlenecks.
Positioning Your Business for What’s Next
Q2 earnings prove the market isn’t collapsing. It’s evolving. Homeowners are cautious, but contractors who focus on essential categories, embrace retail partnerships, and prepare for the rebound will find plenty of opportunity ahead. With Cilio as your production management partner, you’re staying one step ahead of the industry as it changes.
To see how Cilio can give you a leg up on the competition, schedule a 10-minute call or demo today!
