SiteOne Landscape Supply Announces Third Quarter 2025 Earnings
Third Quarter 2025 Highlights (Compared to Third Quarter 2024):
-
Net sales increased
4% to$1,258.2 million -
Organic Daily Sales increased
3% -
Gross profit increased
6% to$437.2 million 34.7% -
SG&A as a percentage of Net sales decreased 50 basis points to
28.4% -
Net income attributable to SiteOne increased
33% to$59.1 million -
Adjusted EBITDA1 increased
11% to$127.5 million 10.1% -
Cash provided by operating activities increased
$12.7 million $128.6 million - Closed the acquisitions of Grove Nursery, Nashville Nursey and Landscape Supply, and Autumn Ridge Stone & Landscape Supply
Post Quarter Highlights
- Closed the acquisition of Red’s Home & Garden
-
Repurchased
$20.0 million
“We are pleased to report another quarter of strong operational performance, delivering double-digit year-over-year Adjusted EBITDA growth and meaningful operating leverage despite challenging end markets,” said Doug Black, SiteOne’s Chairman and CEO. “Our strong teams continued to leverage our capabilities to gain market share resulting in Organic Daily Sales growth of
“While we expect the end-market softness to persist through the end of the year, we have the ability, through our commercial and operational initiatives, to achieve above market organic growth and strong operating leverage. With our leading market position, excellent teams, operational execution, and proven M&A strategy, we are confident in our ability to deliver superior value to our customers and drive continued performance and growth.”
Third Quarter 2025 Results
Net sales for the Third Quarter 2025 increased to
Gross profit increased
Selling, general and administrative expenses (“SG&A”) for the Third Quarter 2025 increased
Net income attributable to SiteOne for the Third Quarter 2025 increased to
Adjusted EBITDA1 for the Third Quarter 2025 increased
Net debt, calculated as long-term debt (net of issuance costs and discounts) plus finance leases, net of Cash and cash equivalents on our balance sheet as of September 28, 2025, was
As of September 28, 2025, Cash and cash equivalents was
| ______________________________ | ||
| 1. |
Adjusted EBITDA includes contribution from non-controlling interest of |
|
Outlook
“We expect the end market demand in new residential construction (
To proactively address the potential for continued soft market conditions and to further optimize our footprint and cost structure, we plan to consolidate or close additional branches in the fourth quarter and incur a corresponding charge to Adjusted EBITDA of approximately
Given these trends and including the anticipated fourth quarter charge, we now expect our full year Adjusted EBITDA to be in the range of
Reconciliation for the forward-looking full year 2025 Adjusted EBITDA outlook is not being provided, as the Company does not currently have sufficient data to accurately estimate the variables and individual adjustments for such reconciliation.
Conference Call Information
SiteOne management will host a conference call today, October 29, 2025, at 8:00 a.m. Eastern Time, to discuss the Company’s financial results. The conference call can also be accessed by dialing 877-704-4453 (domestic) or 201-389-0920 (international), or by clicking on this link for instant telephone access to the call. A telephonic replay will be available approximately three hours after the call by dialing 844-512-2921, or for international callers, 412-317-6671. The passcode for the replay is 13756184. The replay will be available until 11:59 p.m. (ET) on November 12, 2025.
Interested investors and other parties can listen to a webcast of the live conference call by logging onto the Investor Relations section of the Company's website at http://investors.siteone.com. The online replay will be available for 30 days on the same website immediately following the call. A slide presentation highlighting the Company’s results and key performance indicators will also be available on the Investor Relations section of the Company’s website.
To learn more about SiteOne, please visit the company's website at http://investors.siteone.com.
About SiteOne Landscape Supply, Inc.
SiteOne Landscape Supply, Inc. (NYSE: SITE), is the largest and only national full product line wholesale distributor of landscape supplies in
Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to driving organic and inorganic growth, and 2025 Adjusted EBITDA outlook. Some of the forward-looking statements can be identified by the use of terms such as “may,” “intend,” “might,” “will,” “should,” “could,” “would,” “expect,” “believe,” “estimate,” “anticipate,” “predict,” “project,” “potential,” or the negative of these terms, and similar expressions. You should be aware that these forward-looking statements are subject to risks and uncertainties that are beyond our control. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time that may cause our business not to develop as we expect, and it is not possible for us to predict all of them. Factors that may cause actual results to differ materially from those expressed or implied by the forward-looking statements include, but are not limited to, the following: cyclicality in residential and commercial construction markets; general business, financial market, and economic conditions including challenges created, in part by the imposition of
Non-GAAP Financial Information
This release includes certain financial information, not prepared in accordance with
We present Adjusted EBITDA in order to evaluate the operating performance and efficiency of our business. EBITDA represents Net income (loss) plus the sum of income tax expense (benefit), interest expense, net of interest income, and depreciation and amortization. Adjusted EBITDA represents EBITDA as further adjusted for stock-based compensation expense, (gain) loss on sale of assets and termination of finance leases not in the ordinary course of business, financing fees, as well as other fees and expenses related to acquisitions, and other non-recurring (income) loss. Adjusted EBITDA includes Adjusted EBITDA attributable to non-controlling interest. Adjusted EBITDA does not include pre-acquisition acquired Adjusted EBITDA. Adjusted EBITDA is not a measure of our liquidity or financial performance under
SiteOne Landscape Supply, Inc. |
||||||||
Consolidated Balance Sheets (Unaudited) |
||||||||
(In millions, except share and per share data) |
||||||||
Assets |
|
September 28,
|
|
December 29,
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
106.9 |
|
|
$ |
107.1 |
|
Accounts receivable, net of allowance for doubtful accounts of |
|
|
606.0 |
|
|
|
547.1 |
|
Inventory, net |
|
|
962.6 |
|
|
|
827.2 |
|
Income tax receivable |
|
|
5.0 |
|
|
|
12.3 |
|
Prepaid expenses and other current assets |
|
|
89.9 |
|
|
|
55.9 |
|
Total current assets |
|
|
1,770.4 |
|
|
|
1,549.6 |
|
|
|
|
|
|
||||
Property and equipment, net |
|
|
300.6 |
|
|
|
292.1 |
|
Operating lease right-of-use assets, net |
|
|
410.3 |
|
|
|
415.3 |
|
Goodwill |
|
|
522.2 |
|
|
|
518.1 |
|
Intangible assets, net |
|
|
227.0 |
|
|
|
261.0 |
|
Deferred tax assets |
|
|
18.4 |
|
|
|
18.5 |
|
Other assets |
|
|
18.5 |
|
|
|
16.2 |
|
Total assets |
|
$ |
3,267.4 |
|
|
$ |
3,070.8 |
|
|
|
|
|
|
||||
Liabilities, Redeemable Non-controlling Interest, and Stockholders' Equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
341.7 |
|
|
$ |
315.5 |
|
Current portion of finance leases |
|
|
34.2 |
|
|
|
29.7 |
|
Current portion of operating leases |
|
|
90.3 |
|
|
|
90.2 |
|
Accrued compensation |
|
|
87.8 |
|
|
|
70.9 |
|
Long-term debt, current portion |
|
|
3.9 |
|
|
|
4.3 |
|
Accrued liabilities |
|
|
153.5 |
|
|
|
130.2 |
|
Total current liabilities |
|
|
711.4 |
|
|
|
640.8 |
|
|
|
|
|
|
||||
Other long-term liabilities |
|
|
4.3 |
|
|
|
11.0 |
|
Finance leases, less current portion |
|
|
106.8 |
|
|
|
100.9 |
|
Operating leases, less current portion |
|
|
335.9 |
|
|
|
342.3 |
|
Long-term debt, less current portion |
|
|
384.5 |
|
|
|
383.9 |
|
Total liabilities |
|
|
1,542.9 |
|
|
|
1,478.9 |
|
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
|
||||
|
|
|
|
|
||||
Redeemable non-controlling interest |
|
|
22.8 |
|
|
|
19.4 |
|
|
|
|
|
|
||||
Stockholders' equity: |
|
|
|
|
||||
Common stock, par value |
|
|
0.5 |
|
|
|
0.5 |
|
Additional paid-in capital |
|
|
652.7 |
|
|
|
626.5 |
|
Retained earnings |
|
|
1,200.7 |
|
|
|
1,039.9 |
|
Accumulated other comprehensive loss |
|
|
(5.9 |
) |
|
|
(6.1 |
) |
Treasury stock, at cost, 1,183,073 and 688,464 shares at September 28, 2025 and December 29, 2024, respectively |
|
|
(146.3 |
) |
|
|
(88.3 |
) |
Total stockholders' equity |
|
|
1,701.7 |
|
|
|
1,572.5 |
|
Total liabilities, redeemable non-controlling interest, and stockholders' equity |
|
$ |
3,267.4 |
|
|
$ |
3,070.8 |
|
SiteOne Landscape Supply, Inc. |
||||||||||||
Consolidated Statements of Operations (Unaudited) |
||||||||||||
(In millions, except share and per share data) |
||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
|
September 28,
|
|
September 29,
|
|
September 28,
|
|
September 29,
|
||||
Net sales |
|
$ |
1,258.2 |
|
$ |
1,208.8 |
|
$ |
3,659.2 |
|
$ |
3,527.5 |
Cost of goods sold |
|
|
821.0 |
|
|
797.8 |
|
|
2,380.8 |
|
|
2,305.0 |
Gross profit |
|
|
437.2 |
|
|
411.0 |
|
|
1,278.4 |
|
|
1,222.5 |
|
|
|
|
|
|
|
|
|
||||
Selling, general and administrative expenses |
|
|
357.4 |
|
|
349.1 |
|
|
1,049.7 |
|
|
1,020.6 |
Other income |
|
|
5.4 |
|
|
8.0 |
|
|
14.4 |
|
|
15.3 |
Operating income |
|
|
85.2 |
|
|
69.9 |
|
|
243.1 |
|
|
217.2 |
|
|
|
|
|
|
|
|
|
||||
Interest and other non-operating expenses, net |
|
|
9.1 |
|
|
9.5 |
|
|
26.8 |
|
|
25.2 |
Income before taxes |
|
|
76.1 |
|
|
60.4 |
|
|
216.3 |
|
|
192.0 |
Income tax expense |
|
|
15.5 |
|
|
15.8 |
|
|
51.1 |
|
|
46.1 |
Net income |
|
|
60.6 |
|
|
44.6 |
|
|
165.2 |
|
|
145.9 |
|
|
|
|
|
|
|
|
|
||||
Less: |
|
|
|
|
|
|
|
|
||||
Net income attributable to non-controlling interest |
|
|
0.4 |
|
|
0.2 |
|
|
1.4 |
|
|
0.6 |
Adjustment of non-controlling interest to redemption value |
|
|
1.1 |
|
|
— |
|
|
3.0 |
|
|
— |
|
|
|
|
|
|
|
|
|
||||
Net income attributable to SiteOne |
|
$ |
59.1 |
|
$ |
44.4 |
|
$ |
160.8 |
|
$ |
145.3 |
|
|
|
|
|
|
|
|
|
||||
Net income per common share: |
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
1.32 |
|
$ |
0.98 |
|
$ |
3.58 |
|
$ |
3.21 |
Diluted |
|
$ |
1.31 |
|
$ |
0.97 |
|
$ |
3.56 |
|
$ |
3.18 |
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
||||
Basic |
|
|
44,802,833 |
|
|
45,229,528 |
|
|
44,901,813 |
|
|
45,253,447 |
Diluted |
|
|
45,035,242 |
|
|
45,572,078 |
|
|
45,174,654 |
|
|
45,647,670 |
SiteOne Landscape Supply, Inc. |
||||||||
Consolidated Statements of Cash Flows (Unaudited) |
||||||||
(In millions) |
||||||||
|
|
Nine Months Ended |
||||||
|
|
September 28, 2025 |
|
September 29, 2024 |
||||
Cash Flows from Operating Activities: |
|
|
|
|
||||
Net income |
|
$ |
165.2 |
|
|
$ |
145.9 |
|
Adjustments to reconcile Net income to net cash provided by operating activities: |
|
|
|
|
||||
Amortization of finance lease right-of-use assets and depreciation |
|
|
60.5 |
|
|
|
55.3 |
|
Stock-based compensation |
|
|
21.5 |
|
|
|
19.5 |
|
Amortization of software and intangible assets |
|
|
45.6 |
|
|
|
48.1 |
|
Amortization of debt related costs |
|
|
0.8 |
|
|
|
1.0 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
1.8 |
|
Gain on sale of equipment |
|
|
(0.6 |
) |
|
|
(1.0 |
) |
Deferred income taxes |
|
|
0.5 |
|
|
|
— |
|
Other |
|
|
(4.9 |
) |
|
|
(5.8 |
) |
Changes in operating assets and liabilities, net of the effects of acquisitions: |
|
|
|
|
||||
Receivables |
|
|
(56.9 |
) |
|
|
(72.4 |
) |
Inventory |
|
|
(131.6 |
) |
|
|
(44.2 |
) |
Income tax receivable |
|
|
7.3 |
|
|
|
(4.0 |
) |
Prepaid expenses and other assets |
|
|
(30.6 |
) |
|
|
(28.1 |
) |
Accounts payable |
|
|
24.5 |
|
|
|
47.2 |
|
Income tax payable |
|
|
— |
|
|
|
(8.0 |
) |
Accrued expenses and other liabilities |
|
|
34.4 |
|
|
|
8.7 |
|
Net Cash Provided By Operating Activities |
|
$ |
135.7 |
|
|
$ |
164.0 |
|
|
|
|
|
|
||||
Cash Flows from Investing Activities: |
|
|
|
|
||||
Purchases of property and equipment |
|
|
(39.2 |
) |
|
|
(31.0 |
) |
Purchases of intangible assets |
|
|
(0.6 |
) |
|
|
(3.4 |
) |
Acquisitions, net of cash acquired |
|
|
(18.4 |
) |
|
|
(110.4 |
) |
Proceeds from the sale of property and equipment |
|
|
4.8 |
|
|
|
4.5 |
|
Net Cash Used In Investing Activities |
|
$ |
(53.4 |
) |
|
$ |
(140.3 |
) |
|
|
|
|
|
||||
Cash Flows from Financing Activities: |
|
|
|
|
||||
Equity proceeds from common stock |
|
|
9.0 |
|
|
|
5.1 |
|
Repurchases of common shares |
|
|
(58.3 |
) |
|
|
(21.6 |
) |
Distributions to non-controlling interest |
|
|
(1.0 |
) |
|
|
— |
|
Borrowings under term loans |
|
|
— |
|
|
|
220.1 |
|
Repayments under term loans |
|
|
(2.9 |
) |
|
|
(197.0 |
) |
Borrowings on asset-based credit facilities |
|
|
293.8 |
|
|
|
360.9 |
|
Repayments on asset-based credit facilities |
|
|
(291.1 |
) |
|
|
(354.9 |
) |
Payments of debt issuance costs |
|
|
— |
|
|
|
(2.2 |
) |
Payments on finance lease obligations |
|
|
(24.1 |
) |
|
|
(19.4 |
) |
Payments of acquisition related contingent obligations |
|
|
(3.8 |
) |
|
|
(4.7 |
) |
Other financing activities |
|
|
(4.8 |
) |
|
|
(6.8 |
) |
Net Cash Used In Financing Activities |
|
$ |
(83.2 |
) |
|
$ |
(20.5 |
) |
|
|
|
|
|
||||
Effect of exchange rate on cash |
|
|
0.7 |
|
|
|
(0.2 |
) |
Net change in cash |
|
|
(0.2 |
) |
|
|
3.0 |
|
Cash and cash equivalents: |
|
|
|
|
||||
Beginning |
|
|
107.1 |
|
|
|
82.5 |
|
Ending |
|
$ |
106.9 |
|
|
$ |
85.5 |
|
|
|
|
|
|
||||
Supplemental Disclosures of Cash Flow Information: |
|
|
|
|
||||
Cash paid during the year for interest |
|
$ |
26.0 |
|
|
$ |
23.0 |
|
Cash paid during the year for income taxes |
|
$ |
38.2 |
|
|
$ |
56.3 |
|
SiteOne Landscape Supply, Inc. |
||||||||||||||||||||||||||||||||
Adjusted EBITDA to Net Income Reconciliation (Unaudited) |
||||||||||||||||||||||||||||||||
(In millions) |
||||||||||||||||||||||||||||||||
The following table presents a reconciliation of Adjusted EBITDA to Net income (loss): |
||||||||||||||||||||||||||||||||
|
|
2025 |
|
2024 |
|
2023 |
||||||||||||||||||||||||||
|
|
Qtr 3 |
|
Qtr 2 |
|
Qtr 1 |
|
Qtr 4 |
|
Qtr 3 |
|
Qtr 2 |
|
Qtr 1 |
|
Qtr 4 |
||||||||||||||||
Reported Net income (loss) |
$ |
60.6 |
|
$ |
132.1 |
|
|
$ |
(27.5 |
) |
|
$ |
(21.5 |
) |
|
$ |
44.6 |
|
$ |
120.6 |
|
|
$ |
(19.3 |
) |
|
$ |
(3.4 |
) |
|||
|
Income tax expense (benefit) |
|
15.5 |
|
|
45.0 |
|
|
|
(9.4 |
) |
|
|
(10.1 |
) |
|
|
15.8 |
|
|
40.0 |
|
|
|
(9.7 |
) |
|
|
(5.0 |
) |
||
|
Interest expense, net |
|
9.1 |
|
|
10.3 |
|
|
|
7.4 |
|
|
|
6.7 |
|
|
|
9.5 |
|
|
9.0 |
|
|
|
6.7 |
|
|
|
6.5 |
|
||
|
Depreciation and amortization |
|
35.4 |
|
|
35.3 |
|
|
|
35.4 |
|
|
|
35.6 |
|
|
|
35.9 |
|
|
34.6 |
|
|
|
32.9 |
|
|
|
34.6 |
|
||
EBITDA |
|
120.6 |
|
|
222.7 |
|
|
|
5.9 |
|
|
|
10.7 |
|
|
|
105.8 |
|
|
204.2 |
|
|
|
10.6 |
|
|
|
32.7 |
|
|||
|
Stock-based compensation(a) |
|
5.6 |
|
|
2.3 |
|
|
|
13.6 |
|
|
|
5.5 |
|
|
|
5.2 |
|
|
3.8 |
|
|
|
10.5 |
|
|
|
5.0 |
|
||
|
(Gain) loss on sale of assets(b) |
|
0.1 |
|
|
(0.5 |
) |
|
|
(0.2 |
) |
|
|
1.5 |
|
|
|
0.3 |
|
|
(0.3 |
) |
|
|
(1.0 |
) |
|
|
(0.1 |
) |
||
|
Financing fees(c) |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.5 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
||
|
Acquisitions and other adjustments(d) |
|
1.2 |
|
|
2.2 |
|
|
|
3.1 |
|
|
|
14.1 |
|
|
|
3.0 |
|
|
2.8 |
|
|
|
1.0 |
|
|
|
2.3 |
|
||
Adjusted EBITDA(e) |
$ |
127.5 |
|
$ |
226.7 |
|
|
$ |
22.4 |
|
|
$ |
31.8 |
|
|
$ |
114.8 |
|
$ |
210.5 |
|
|
$ |
21.1 |
|
|
$ |
39.9 |
|
|||
| _____________________ | ||||||||||||||||||||||||||||||||
(a) |
Represents stock-based compensation expense recorded during the period. |
|||||||||||||||||||||||||||||||
(b) |
Represents any gain or loss associated with the sale of assets and termination of finance leases not in the ordinary course of business. |
|||||||||||||||||||||||||||||||
(c) |
Represents fees associated with our debt refinancing and debt amendments. |
|||||||||||||||||||||||||||||||
(d) |
Represents professional fees and settlement of litigation, performance bonuses, and retention and severance payments related to historical acquisitions. Also included is the cost of inventory that was stepped up to fair value during the second quarter of 2024 related to the purchase accounting of Devil Mountain and charges during the fourth quarter of 2024 for consolidating or closing certain locations acquired in connection with our acquisition of Pioneer Landscape Centers, Inc. and JLL Pioneer LLC. We cannot predict the timing or amount of any such fees or payments. These amounts are recorded in Cost of goods sold and Selling, general and administrative expenses in the Consolidated Statements of Operations. |
|||||||||||||||||||||||||||||||
(e) |
Adjusted EBITDA excludes any earnings or loss of acquisitions prior to their respective acquisition dates for all periods presented. Adjusted EBITDA includes Adjusted EBITDA attributable to non-controlling interest of |
|||||||||||||||||||||||||||||||
SiteOne Landscape Supply, Inc. |
|||||||||||||||||||
Organic Daily Sales to Net Sales Reconciliation |
|||||||||||||||||||
(In millions, except Selling Days; unaudited) |
|||||||||||||||||||
The following table presents a reconciliation of Organic Daily Sales to Net sales: |
|||||||||||||||||||
|
2025 |
|
2024 |
||||||||||||||||
|
Qtr 3 |
|
Qtr 2 |
|
Qtr 1 |
|
Qtr 3 |
|
Qtr 2 |
|
Qtr 1 |
||||||||
Reported Net sales |
$ |
1,258.2 |
|
$ |
1,461.6 |
|
$ |
939.4 |
|
$ |
1,208.8 |
|
$ |
1,413.9 |
|
$ |
904.8 |
||
Organic Sales(a) |
|
1,203.8 |
|
|
1,394.0 |
|
|
894.3 |
|
|
1,166.9 |
|
|
1,387.2 |
|
|
904.8 |
||
Acquisition contribution(b) |
|
54.4 |
|
|
67.6 |
|
|
45.1 |
|
|
41.9 |
|
|
26.7 |
|
|
— |
||
Selling Days |
|
63 |
|
|
64 |
|
|
64 |
|
|
63 |
|
|
64 |
|
|
64 |
||
Organic Daily Sales |
$ |
19.1 |
|
$ |
21.8 |
|
$ |
14.0 |
|
$ |
18.5 |
|
$ |
21.7 |
|
$ |
14.1 |
||
| _______________________ | |||||||||||||||||||
(a) |
Organic Sales equal Net sales less Net sales from branches acquired in 2025 and 2024. |
||||||||||||||||||
(b) |
Represents Net sales from acquired branches that have not been under our ownership for at least four full fiscal quarters at the start of the 2025 Fiscal Year. Includes Net sales from branches acquired in 2025 and 2024. |
||||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20251029645990/en/
Investor Relations:
SiteOne Landscape Supply, Inc.
Investor Relations
470-270-7011
investors@siteone.com
Source: SiteOne Landscape Supply, Inc.
