SiteOne Landscape Supply Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.04%.
Did SITE Beat Earnings? Q3 2025 Results
SiteOne Landscape Supply delivered a modest but clean beat in Q3 2025, with earnings per share of $1.31 edging past the $1.29 consensus by 1.76% and revenue of $1.26 billion landing fractionally ahead of expectations on 4.1% year-over-year growth. The headline driver was disciplined margin execution, as gross margin expanded 70 basis points to 34.7% while SG&A leverage improved 50 basis points to 28.4%, a combination that powered a 33% jump in net income to $59.10 million and an 11% rise in Adjusted EBITDA to $127.50 million. Organic daily sales growth of 3% held firm across nearly all product lines and regions despite persistent softness in new residential construction and repair and upgrade end markets. The company also completed three acquisitions during the quarter, keeping its growth-by-acquisition strategy on track. William Blair downgraded the stock around the time of the report, a note of caution that management may need to address as it guides for full-year 2025 Adjusted EBITDA of $405 million to $415 million, a range that absorbs an anticipated $4 million to $6 million charge tied to planned branch consolidations in Q4.
- Organic Daily Sales growth of 3% with all product lines and nearly all regions contributing positively
- Pricing up 1% reflecting strong execution and operating discipline
- Gross margin improved 70 basis points to 34.7% due to improved price realization and commercial initiatives
- SG&A as a percentage of net sales decreased 50 basis points to 28.4% through productivity improvements and cost alignment
- Acquisitions contributed $12.5 million or 1% to net sales growth
“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. Our strong teams continued to leverage our capabilities to gain market share resulting in Organic Daily Sales growth of 3%, with all product lines and nearly all regions contributing positively. Pricing was up 1% in the third quarter reflecting strong execution and operating discipline, as we more than offset commodity headwinds and drove gross margin expansion through our strategic initiatives. We also completed six acquisitions year-to-date which expand our capabilities to serve our customers in those local markets.”
SiteOne Landscape Supply CEO, on the earnings call
Forward Guidance & Outlook
Management expects end-market softness to persist through the remainder of 2025, with new residential construction and repair & upgrade segments remaining soft, though the latter is showing some stabilization. Maintenance is expected to grow modestly and new commercial construction is expected to be flat. Pricing is expected to be up 1-2% in Q4 as commodity deflation dissipates. Sales volume is expected to be modestly positive, yielding low single-digit Organic Daily Sales growth for Q4. The company plans to consolidate or close additional branches in Q4, incurring a charge of approximately $4-6 million to Adjusted EBITDA. Including this charge, full year 2025 Adjusted EBITDA is expected to be $405 million to $415 million. The company remains on track to expand Adjusted EBITDA margin for the full year 2025.
SITE YoY Financials
Figures from SEC filings and company reports. Not investment advice.