LOWE'S REPORTS FIRST QUARTER 2026 SALES AND EARNINGS RESULTS

Rhea-AI Summary

Lowe's (NYSE: LOW) reported first quarter 2026 net earnings of $1.6 billion and diluted EPS of $2.90, slightly below $2.92 a year ago. Excluding $96 million in pre-tax expenses tied to the FBM and ADG acquisitions, adjusted diluted EPS was $3.03, up 3.8% versus prior-year diluted EPS.

Total sales reached $23.1 billion versus $20.9 billion, with comparable sales up 0.6% and online sales up 15.5%. Lowe's affirmed its full-year 2026 outlook, guiding to $92.0–$94.0 billion in sales, operating margin of 11.2%–11.4%, and diluted EPS of $11.75–$12.25. The company paid $674 million in dividends during the quarter.

AI-generated analysis. Not financial advice.

Positive

• Q1 2026 sales of $23.1 billion vs. $20.9 billion prior year
• Q1 comparable sales increased 0.6% with online sales up 15.5%
• Adjusted diluted EPS of $3.03, up 3.8% vs. prior-year diluted EPS
• Affirmed 2026 sales outlook of $92.0–$94.0 billion, up ~7%–9%
• 2026 diluted EPS outlook of $11.75–$12.25; adjusted EPS $12.25–$12.75
• Paid $674 million in dividends in the first quarter

Negative

• GAAP diluted EPS declined to $2.90 from $2.92 year over year
• Recorded $96 million in pre-tax expenses related to FBM and ADG acquisitions
• 2026 comparable sales outlook only flat to up 2% vs. prior year

News Market Reaction – LOW

-0.11%

17 alerts

-0.11% News Effect

-$129M Valuation Impact

$117.41B Market Cap

0.3x Rel. Volume

On the day this news was published, LOW declined 0.11%, reflecting a mild negative market reaction. Our momentum scanner triggered 17 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $129M from the company's valuation, bringing the market cap to $117.41B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Diluted EPS: $2.90 Adjusted diluted EPS: $3.03 Net earnings: $1.6 billion +5 more

8 metrics

Diluted EPS $2.90 Q1 2026; vs $2.92 in Q1 2025

Adjusted diluted EPS $3.03 Q1 2026; up 3.8% vs prior-year diluted EPS

Net earnings $1.6 billion Q1 2026 results

Total sales $23.1 billion Q1 2026; vs $20.9 billion prior-year quarter

Comparable sales growth 0.6% Q1 2026; fourth consecutive positive comp quarter

Online sales growth 15.5% Q1 2026; contributes to comp increase

FY 2026 EPS outlook $11.75–$12.25 Diluted EPS guidance affirmed for fiscal 2026

Capital expenditures Up to $2.5 billion Planned FY 2026 capex

Market Reality Check

Price: $221.05 Vol: Volume 3,298,635 versus 2...

normal vol

$221.05 Last Close

Volume Volume 3,298,635 versus 20-day average of 2,629,113, indicating elevated trading activity ahead of results. normal

Technical Shares at $218.37, trading below 200-day MA of $249.28 and about 25% under the 52-week high.

Peers on Argus

LOW was modestly higher pre-release, while peers were mixed: HD up 3.62%, TJX up...

LOW was modestly higher pre-release, while peers were mixed: HD up 3.62%, TJX up 1.06%, PDD up 2.4%, but FND down 0.76% and SE slightly negative. This points to stock-specific focus rather than a uniform home-improvement retail move.

Historical Context

5 past events · Latest: May 18 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
May 18	Marketing partnership	Positive	-0.2%	Launch of MrBeast-themed Kids Club workshops across 1,750+ stores.
May 14	Loyalty promotion	Positive	+1.4%	“Epically More Messi” summer rewards campaign targeting loyalty members.
May 13	Earnings logistics	Neutral	-1.8%	Scheduling announcement for Q1 2026 earnings conference call webcast.
Apr 30	Credit partnership	Positive	+2.3%	Synchrony becomes issuer of MyLowe's Pro Rewards American Express card.
Apr 7	Workforce initiative	Positive	-1.5%	Foundation commits $250M to train 250,000 tradespeople by 2035.

Pattern Detected

Recent promotional and strategic partnership news often saw modest, mixed price reactions, with some positive announcements followed by short-term weakness.

Recent Company History

Over the last few months, Lowe’s has emphasized marketing partnerships, customer engagement, and strategic credit offerings. Campaigns like the MrBeast Kids Club and “Epically More Messi” reflected efforts to deepen loyalty, while the Synchrony co-brand credit card expanded Pro financing options. A prior notice about this same Q1 2026 earnings call drew a small negative reaction. Against that backdrop, today’s Q1 2026 results and affirmed 2026 outlook highlight operational execution on the Total Home strategy following these initiatives.

Market Pulse Summary

This announcement details Q1 2026 performance with sales of $23.1 billion, diluted EPS of $2.90, adj...

Analysis

This announcement details Q1 2026 performance with sales of $23.1 billion, diluted EPS of $2.90, adjusted diluted EPS of $3.03, and comparable sales up 0.6%, supported by 15.5% online growth. Lowe’s also affirmed its 2026 outlook, including EPS of $11.75–$12.25 and up to $2.5 billion in capital expenditures. Investors may track comp trends, margin targets of 11.2–11.4%, and execution of the Total Home strategy against a soft housing environment.

Key Terms

diluted EPS, adjusted diluted EPS, comparable sales, operating margin, +4 more

8 terms

diluted EPS financial

"Lowe's today reported net earnings of $1.6 billion and diluted earnings per share (EPS) of $2.90"

Diluted earnings per share (EPS) shows how much profit a company makes for each share of stock, assuming all possible shares from stock options or convertible securities are used. It provides a more conservative estimate than basic EPS, accounting for potential share increases that could dilute ownership. Investors use diluted EPS to get a clearer picture of a company's true profitability on a per-share basis.

adjusted diluted EPS financial

"Adjusted Diluted EPS1 of $3.03"

Adjusted diluted EPS is a company’s profit per share after adding back or removing one-time items (like restructuring costs or gains) and dividing by the number of shares including potential shares from options and convertible securities. Investors use it as a cleaner view of ongoing earnings—like looking at a car’s regular fuel efficiency rather than a trip boosted by downhill coasting—to judge underlying performance and compare companies without temporary distortions.

comparable sales financial

"Comparable sales for the quarter increased 0.6%"

"Comparable sales" are the total sales from stores or products that have been open for a certain period, usually the same time last year or last quarter. They help show whether a business is growing by comparing similar locations or products over time, much like checking if your favorite store's sales are going up compared to previous years.

operating margin financial

"Operating income as a percentage of sales (operating margin) of 11.2% to 11.4%"

Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.

adjusted operating margin financial

"Adjusted1 operating income as a percentage of sales (adjusted operating margin) of 11.6% to 11.8%"

Adjusted operating margin shows how much profit a company makes from its core business activities, after removing unusual or one-time costs and income. It helps investors see the company's true profitability by providing a clearer picture, similar to removing unexpected expenses to understand the regular performance. This metric is useful for comparing companies or tracking performance over time, as it highlights consistent earning power.

net interest expense financial

"Net interest expense of approximately $1.6 billion"

Net interest expense is the amount a company pays in interest on its borrowings after subtracting the interest it earns on cash and investments; it’s effectively the company’s net cost of borrowing. Investors watch it because it reduces profits and cash available for dividends or growth, and it can rise or fall with interest rates and how much debt a company carries—think of it like your household mortgage payments minus any interest you get from savings.

effective income tax rate financial

"Effective income tax rate of approximately 24.5%"

The effective income tax rate is the share of a company’s pre-tax profit that it actually pays in income taxes, calculated by dividing total tax expense by pre-tax income. For investors, it shows how much tax reduces a company’s earnings — like knowing the difference between a car’s sticker price and what you actually pay after fees and discounts — and helps compare profitability and cash available for growth or dividends.

capital expenditures financial

"Capital expenditures of up to $2.5 billion"

Capital expenditures are the money a company spends to buy or improve big assets like buildings, equipment, or machines that will last a long time. These investments matter because they help the company grow and operate more efficiently, similar to how upgrading a home’s appliances or adding a new room can make it better and more valuable.

AI-generated analysis. Not financial advice.

— Diluted EPS of $2.90; Adjusted Diluted EPS¹ of $3.03 —
— Comparable Sales increased 0.6% — 
— Affirms Full Year 2026 Outlook —

MOORESVILLE, N.C., May 20, 2026 /PRNewswire/ -- Lowe's Companies, Inc. (NYSE: LOW) today reported net earnings of $1.6 billion and diluted earnings per share (EPS) of $2.90 for the quarter ended May 1, 2026, compared to diluted EPS of $2.92 in the first quarter of 2025. During the first quarter, the company recognized $96 million in pre-tax expenses associated with the acquisitions of Foundation Building Materials (FBM) and Artisan Design Group (ADG). Excluding these expenses, first quarter 2026 adjusted diluted EPS¹ increased 3.8% to $3.03 compared to the prior-year diluted EPS.

Total sales for the quarter were $23.1 billion, compared to $20.9 billion in the prior-year quarter. Comparable sales for the quarter increased 0.6%, driven by strong spring execution as well as a 15.5% online sales growth and continued strength in appliances, home services and Pro sales.

"Strong spring execution and continued momentum in Pro, Appliances, Online, and Home Services supported a solid start to the year as we delivered our fourth consecutive quarter of positive comp sales," said Marvin R. Ellison, Lowe's chairman, president and CEO. "In spite of a challenging housing macro, we remain focused on advancing our Total Home strategy to provide the best experience for our customer. I'd also like to thank our associates for their dedication to serving our customers throughout the busy spring season."

As of May 1, 2026, Lowe's operated 1,759 stores, representing 196.0 million square feet of retail selling space.

Capital Allocation
The company remains committed to generating sustainable shareholder value through a disciplined focus on its capital allocation program. During the quarter, the company paid $674 million in dividends.

1	Adjusted diluted earnings per share is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures Reconciliation" section of this release for additional information, as well as reconciliations between the company's GAAP and non-GAAP financial results.

Lowe's Business Outlook

The company is affirming its outlook for fiscal year 2026.

Full Year 2026 Outlook

• Total sales of $92.0 to 94.0 billion or an increase of approximately 7% to 9% compared to prior year
• Comparable sales expected to be flat to up 2% as compared to prior year
• Operating income as a percentage of sales (operating margin) of 11.2% to 11.4%
• Adjusted¹ operating income as a percentage of sales (adjusted operating margin) of 11.6% to 11.8%
• Net interest expense of approximately $1.6 billion
• Effective income tax rate of approximately 24.5%
• Diluted earnings per share of approximately $11.75 to $12.25
• Adjusted¹ diluted earnings per share of approximately $12.25 to $12.75
• Capital expenditures of up to $2.5 billion

A conference call to discuss first quarter 2026 operating results is scheduled for today, Wednesday, May 20, at 9 a.m. ET. The conference call will be available by webcast and can be accessed by visiting Lowe's website at ir.lowes.com and clicking on Lowe's First Quarter 2026 Earnings Conference Call Webcast. Supplemental slides will be available prior to the start of the conference call. A replay of the call will be archived at ir.lowes.com.

Lowe's Companies, Inc.

Lowe's Companies, Inc. (NYSE: LOW) is a FORTUNE® 100 home improvement company with total fiscal year 2025 sales of more than $86 billion. Lowe's employs approximately 300,000 associates and operates over 1,750 home improvement stores, 540 branches and 120 distribution centers. Based in Mooresville, N.C., Lowe's supports the communities it serves through programs focused on creating safe, affordable housing, improving community spaces, helping to develop the next generation of skilled trade experts and providing disaster relief to communities in need. For more information, visit Lowes.com.

1	Adjusted diluted earnings per share is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures Reconciliation" section of this release for additional information, as well as reconciliations between the company's GAAP and non-GAAP financial results.

Disclosure Regarding Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as "believe", "expect", "anticipate", "plan", "desire", "project", "estimate", "intend", "will", "should", "could", "would", "may", "strategy", "potential", "opportunity", "outlook", "scenario", "guidance", and similar expressions are forward-looking statements.  Forward-looking statements involve, among other things, expectations, projections, and assumptions about future financial and operating results, objectives (including objectives related to environmental and social matters), business outlook, priorities, sales growth, shareholder value, capital expenditures, cash flows, the housing market, the home improvement industry, demand for products and services including customer acceptance of new offerings and initiatives, macroeconomic conditions and consumer spending, trade policy changes and additional tariffs, share repurchases, and Lowe's strategic initiatives, including those relating to acquisitions and dispositions and the impact of such transactions on our strategic and operational plans and financial results. Such statements involve risks and uncertainties, and we can give no assurance that they will prove to be correct. Actual results may differ materially from those expressed or implied in such statements.

A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results either expressed or implied by these forward-looking statements including, but not limited to, changes in general economic conditions, such as volatility and/or lack of liquidity from time to time in U.S. and world financial markets and the consequent reduced availability and/or higher cost of borrowing to Lowe's and its customers, slower rates of growth in real disposable personal income that could affect the rate of growth in consumer spending, inflation and its impacts on discretionary spending and on our costs, shortages, and other disruptions in the labor supply, interest rate and currency fluctuations, home price appreciation or decreasing housing turnover, age of housing stock, the availability of consumer credit and of mortgage financing, trade policy changes or additional tariffs, outbreaks of pandemics, fluctuations in fuel and energy costs, inflation or deflation of commodity prices, natural disasters, geopolitical or armed conflicts, acts of both domestic and international terrorism, and other factors that can negatively affect our customers.

Investors and others should carefully consider the foregoing factors and other uncertainties, risks and potential events including, but not limited to, those described in "Item 1A - Risk Factors" in our most recent Annual Report on Form 10-K and as may be updated from time to time in Item 1A in our quarterly reports on Form 10-Q or other subsequent filings with the SEC. All such forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update these statements other than as required by law. 

LOW-IR

Contacts:	Shareholder/Analyst Inquiries:		Media Inquiries:
	Shelly Hubbard		Steve Salazar
	704-775-3856		steve.j.salazar@lowes.com
	shelly.hubbard@lowes.com

 

Lowe's Companies, Inc. Consolidated Statements of Current Earnings and Accumulated Deficit (Unaudited) In Millions, Except Per Share and Percentage Data
	Three Months Ended
	May 1, 2026				May 2, 2025
Current Earnings	Amount		% Sales		Amount		% Sales
Net sales	$ 23,078		100.00		$ 20,930		100.00
Cost of sales	15,535		67.32		13,944		66.62
Gross margin	7,543		32.68		6,986		33.38
Expenses:
Selling, general and administrative	4,423		19.16		4,046		19.33
Depreciation and amortization	566		2.45		446		2.13
Operating income	2,554		11.07		2,494		11.92
Interest – net	399		1.73		337		1.61
Pre-tax earnings	2,155		9.34		2,157		10.31
Income tax provision	527		2.29		516		2.47
Net earnings	$  1,628		7.05		$  1,641		7.84
Weighted average common shares outstanding – basic	559				559
Basic earnings per common share (1)	$   2.90				$   2.93
Weighted average common shares outstanding – diluted	560				560
Diluted earnings per common share (1)	$   2.90				$   2.92
Cash dividends per share	$   1.20				$   1.15
Accumulated Deficit
Balance at beginning of period	$        (10,839)				$        (14,799)
Net earnings	1,628				1,641
Cash dividends declared	(673)				(645)
Share repurchases	—				(30)
Balance at end of period	$          (9,884)				$        (13,833)

(1)

Under the two-class method, earnings per share is calculated using net earnings allocable to common shares, which is derived by reducing net earnings by the earnings allocable to participating securities.  Net earnings allocable to common shares used in the basic and diluted earnings per share calculation were $1,623 million for the three months ended May 1, 2026, and $1,636 million for the three months ended May 02, 2025.

Lowe's Companies, Inc. Consolidated Statements of Comprehensive Income (Unaudited) In Millions, Except Percentage Data
	Three Months Ended
	May 1, 2026				May 2, 2025
	Amount		% Sales		Amount		% Sales
Net earnings	$  1,628		7.05		$  1,641		7.84
Cash flow hedges – net of tax	(3)		(0.01)		(3)		(0.01)
Other	(2)		(0.01)		—		—
Other comprehensive loss	(5)		(0.02)		(3)		(0.01)
Comprehensive income	$  1,623		7.03		$  1,638		7.83

Lowe's Companies, Inc. Consolidated Balance Sheets (Unaudited) In Millions, Except Par Value Data
		May 1, 2026		May 2, 2025
Assets
Current assets:
Cash and cash equivalents		$                 786		$               3,054
Short-term investments		458		368
Receivables - net		1,151		96
Merchandise inventory - net		18,447		18,335
Other current assets		1,320		822
Total current assets		22,162		22,675
Property, less accumulated depreciation		18,254		17,636
Operating lease right-of-use assets		4,182		3,799
Long-term investments		247		300
Deferred income taxes - net		—		118
Goodwill		3,945		311
Intangible assets - net		5,807		274
Other assets		344		259
Total assets		$             54,941		$             45,372
Liabilities and shareholders' deficit
Current liabilities:
Short-term borrowings		$                 380		$                  —
Current maturities of long-term debt		810		4,183
Current operating lease liabilities		662		562
Accounts payable		11,975		11,235
Accrued compensation and employee benefits		972		853
Deferred revenue		1,629		1,500
Other current liabilities		3,846		4,055
Total current liabilities		20,274		22,388
Long-term debt, excluding current maturities		36,751		30,541
Noncurrent operating lease liabilities		3,937		3,669
Deferred income taxes - net		1,239		—
Deferred revenue - Lowe's protection plans		1,248		1,266
Other liabilities		762		762
Total liabilities		64,211		58,626
Shareholders' deficit:
Preferred stock, $5 par value: Authorized - 5.0 million shares; Issued and outstanding - none		—		—
Common stock, $0.50 par value: Authorized - 5.6 billion shares; Issued and outstanding - 561 million and 560 million, respectively		280		280
Capital in excess of par value		68		13
Accumulated deficit		(9,884)		(13,833)
Accumulated other comprehensive income		266		286
Total shareholders' deficit		(9,270)		(13,254)
Total liabilities and shareholders' deficit		$             54,941		$             45,372

Lowe's Companies, Inc. Consolidated Statements of Cash Flows (Unaudited) In Millions
	Three Months Ended
	May 1, 2026		May 2, 2025
Cash flows from operating activities:
Net earnings	$               1,628		$               1,641
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	644		507
Noncash lease expense	169		131
Deferred income taxes	203		126
Loss on property and other assets - net	4		20
Share-based payment expense	65		58
Changes in operating assets and liabilities:
Accounts receivable	(63)		(3)
Merchandise inventory – net	(1,145)		(926)
Other operating assets	(125)		(103)
Accounts payable	2,212		1,945
Other operating liabilities	(242)		(17)
Net cash provided by operating activities	3,350		3,379
Cash flows from investing activities:
Purchases of investments	(337)		(391)
Proceeds from sale/maturity of investments	319		375
Capital expenditures	(521)		(518)
Proceeds from sale of property and other long-term assets	6		2
Other – net	32		(1)
Net cash used in investing activities	(501)		(533)
Cash flows from financing activities:
Net change in commercial paper	378		—
Repayment of debt	(2,376)		(778)
Proceeds from issuance of common stock under share-based payment plans	2		2
Cash dividend payments	(674)		(645)
Repurchases of common stock	(363)		(112)
Other – net	(12)		(20)
Net cash used in financing activities	(3,045)		(1,553)
Net (decrease)/increase in cash and cash equivalents	(196)		1,293
Cash and cash equivalents, beginning of period	982		1,761
Cash and cash equivalents, end of period	$                 786		$               3,054

Lowe's Companies, Inc.
Non-GAAP Financial Measure Reconciliation (Unaudited)

To provide additional transparency, the Company has presented the non-GAAP financial measure of adjusted diluted earnings per share for the three months ended May 1, 2026. This measure excludes the impact of a certain item, further described below, to assist analysts and investors in understanding operational performance for the first quarter of fiscal 2026.

Fiscal 2026 Impacts
During fiscal 2026, the Company recognized financial impacts from the following:

• In the first quarter of fiscal 2026, the Company recognized pre-tax expenses of $96 million consisting of intangible asset amortization related to the acquisitions of Artisan Design Group and Foundation Building Materials (Acquisition of businesses).

In addition, the Company has presented full year fiscal 2026 guidance of the non-GAAP financial measures adjusted operating margin and adjusted diluted earnings per share, which exclude the impact of intangible asset amortization, and related tax effects if applicable, related to the acquisitions of Artisan Design Group and Foundation Building Materials. When evaluated with our GAAP results, we believe these non-GAAP measures provide investors with meaningful measures of comparable performance.

Adjusted operating margin and adjusted diluted earnings per share should not be considered an alternative to, or more meaningful indicator of, the Company's operating margin or diluted earnings per share as prepared in accordance with GAAP. The Company's methods of determining non-GAAP financial measures may differ from the method used by other companies and may not be comparable.

A reconciliation between the Company's GAAP and non-GAAP financial results is shown below and available on the Company's website at ir.lowes.com.

	Three Months Ended
	May 1, 2026
Adjusted Diluted Earnings Per Share	Pre-Tax Earnings	Tax 1	Net Earnings
Diluted Earnings Per Share, As Reported			$           2.90
Acquisition of businesses	0.17	(0.04)	0.13
Adjusted Diluted Earnings Per Share			$           3.03

1	Represents the corresponding tax benefit or expense specifically related to the item excluded from adjusted diluted earnings per share.

Our adjusted operating margin and adjusted diluted earnings per share guidance for fiscal 2026 excludes an expected 40 basis point and $0.50 after tax impact, respectively, from intangible asset amortization.

View original content to download multimedia:https://www.prnewswire.com/news-releases/lowes-reports-first-quarter-2026-sales-and-earnings-results-302776841.html

SOURCE Lowe's Companies, Inc.

FAQ

How did Lowe's (NYSE: LOW) perform in Q1 2026 earnings?

Lowe's reported Q1 2026 net earnings of $1.6 billion and diluted EPS of $2.90. According to the company, total sales were $23.1 billion, with comparable sales up 0.6% and strong online growth of 15.5% for the quarter.

What was Lowe's adjusted EPS in the first quarter of 2026?

Lowe's reported Q1 2026 adjusted diluted EPS of $3.03, excluding certain acquisition-related expenses. According to the company, this adjusted EPS reflects a 3.8% increase compared to the prior-year diluted EPS of $2.92, helped by higher total and comparable sales.

What is Lowe's full-year 2026 sales outlook for NYSE: LOW?

Lowe's expects full-year 2026 total sales of $92.0–$94.0 billion, about 7%–9% above 2025. According to the company, comparable sales are projected to be flat to up 2%, reflecting a cautious but positive demand outlook for the year.

What EPS guidance did Lowe's give for fiscal year 2026?

Lowe's guided 2026 diluted EPS to $11.75–$12.25 and adjusted diluted EPS to $12.25–$12.75. According to the company, this outlook assumes operating margin of 11.2%–11.4% and adjusted operating margin of 11.6%–11.8% for the year.

How did acquisitions impact Lowe's Q1 2026 results?

Lowe's Q1 2026 results included $96 million in pre-tax expenses linked to the FBM and ADG acquisitions. According to the company, excluding these costs, adjusted diluted EPS was $3.03, offering a clearer view of underlying earnings performance versus the prior year.

What capital allocation actions did Lowe's take in Q1 2026?

Lowe's continued returning cash to shareholders, paying $674 million in dividends during Q1 2026. According to the company, it remains focused on disciplined capital allocation, balancing shareholder returns with up to $2.5 billion in planned 2026 capital expenditures.

What operating margin is Lowe's targeting for fiscal 2026?

Lowe's is targeting 2026 operating margin of 11.2%–11.4% and adjusted operating margin of 11.6%–11.8%. According to the company, this outlook is paired with expected net interest expense of about $1.6 billion and an effective tax rate near 24.5%.