“The outlook assumes current consumer and home improvement trends persist and our strategic initiatives continue to drive momentum, especially in pro and online.”

In context

“ter and deliver on our operating commitments. Turning now to capital allocation. In Q2, we generated $3.7 billion in free cash flow inclusive of $495 million in capital expenditures and we invested $1.3 billion for the acquisition of ADG. We paid $645 million in dividends at $1.15 per share announced a $0.05 per share increase to $1.2 per share for the dividend paid on August 6. And we ended the quarter with adjusted debt to EBITDAR of 2.96 times with $4.9 billion of cash and cash equivalents and delivered a return on invested capital of 29.5%. Now turning to our financial outlook. Our first half results actualized within our expected range of outcomes. And looking ahead, our expectations for a roughly flat home improvement market and the performance of our core business remain unchanged. The outlook assumes current consumer and home improvement trends persist and our strategic initiatives continue to drive momentum, especially in pro and online. Today, we are updating our full-year 2025 outlook only to reflect the inclusion of ADG. Taking this into account, we are now expecting sales in the range of $84.5 billion to $85.5 billion with comparable sales in a range of flat to up 1%. We also now expect full-year adjusted operating margin in a range of 12.2% to 12.3% and adjusted diluted earnings per share of approximately $12.2 to $12.45 and we continue to expect capital expenditures of approximately $2.5 billion as we invest in the business and open new stores. Please note that this outlook does not include any potential impacts related to the acquisition of FBM. On an annualized basis, we expect ADG to negatively impact consolidated adjusted operating margin by approximately 15 basis points. Now to assist you with your modeling, he”