Home Depot Q1 revenue +9.4% to $39.9B on SRS acquisition; net income -4.6%, ROIC falls 580bp

Filed May 28, 2025 · Period ending May 4, 2025 · Compared to 10-Q May 21, 2024 · ~1 min read

Key Changes

• high

  Net income fell 4.6% to $3.43B and diluted EPS declined 5.0% to $3.45 despite revenue growth, as SRS integration drove higher interest expense (+38% to $591M) and gross margin compressed 30bp to 33.8%.

  MD&A: Financial Results verify on EDGAR →
• high

  Return on invested capital dropped 580bp to 31.3% from 37.1%, driven by $18B SRS acquisition financing that increased average debt and equity. Share buybacks remain paused through all of fiscal 2025.

  MD&A: ROIC & Capital Allocation verify on EDGAR →
• high

  SRS acquisition closed June 2024 and contributed $2.6B in Q1 sales (roofing 63% of SRS revenue). Goodwill rose $11B to $19.6B; intangible amortization jumped from $52M to $139M quarterly.

  Notes: Acquisitions & Intangibles verify on EDGAR →