“The structure of this financing in conjunction with the timing of our existing bond maturities will allow for steady deleverage to our 2.75 times target, which is expected by mid-2027.”

In context

“ving our SKU rationalization efforts. ADG operating results were accretive to EPS on a non-GAAP basis for the third quarter and pressured operating margin by approximately 15 basis points. In line with expectations. Turning now to capital allocation. In Q3, we generated $687 million in operating cash flow inclusive of the payment of federal and state taxes of roughly $900 million that have been deferred under a provision related to Hurricane Helene. Capital expenditures totaled $57 million as we continue to invest in our strategic growth imperatives. In the quarter, we paid $673 million in dividends at $1.2 per share. Adjusted debt to EBITDAR was 3.36 times at the end of the quarter after we repaid $1.75 billion in debt maturities and borrowed $7 billion to finance the acquisition of FBM. The structure of this financing in conjunction with the timing of our existing bond maturities will allow for steady deleverage to our 2.75 times target, which is expected by mid-2027. We ended the quarter with $621 million of cash and cash equivalents and delivered a return on invested capital of 26.1%. Turning to our financial outlook. Which we are updating to include our year to date results and our expectations for FBM. We are seeing a cautious consumer amid ongoing uncertainty in the macro environment and the timing of an inflection in the home improvement and housing markets remains unclear. We're now expecting comp sales to be roughly flat for the year which is at the bottom end of our previous guidance. Marvin Ellison: When we include FBM sales of approximately $1.3 billion in the fourth quarter we are expecting sales of approximately $86 billion for the year. Brandon Sink: We also now expect full year adjusted operating margin of approximately 12.1% which inclu”