SiteOne Landscape Supply Q1 Earnings Call Highlights

Key Points

• Despite a delayed spring and softer end markets, SiteOne reported net sales of $940 million (organic daily sales -1%) while delivering adjusted EBITDA up 14% to $25.5 million and gross margin expansion of 90 basis points to 33.9%, driven by pricing, private-label momentum and small-customer growth.
• SiteOne completed two acquisitions—Bourget Flagstone and Reinders—adding about $110 million of trailing sales and expects meaningful EBITDA contribution and synergies from Reinders, while repurchasing roughly $20 million of shares opportunistically.
• For 2026 management expects flat sales volume but a 2%–3% pricing tailwind supporting low single-digit organic growth, and guided full-year adjusted EBITDA of $425–$455 million; net debt was $585 million (1.4x) with approximately $502 million of available liquidity.

SiteOne Landscape Supply NYSE: SITE reported first-quarter 2026 results that management said reflected disciplined execution amid delayed spring demand and heightened macroeconomic uncertainty. Chairman and CEO Doug Black said the company “overcame the weather and market-related softness” to deliver 14% growth in adjusted EBITDA versus the prior-year period, supported by gross margin expansion and cost controls.

First-quarter performance shaped by weather and softer demand

Net sales were $940 million, essentially flat year-over-year, with organic daily sales down 1%, CFO Eric Elema said. The quarter included 64 selling days, unchanged from the prior year. Management attributed the softness primarily to a delayed start to the spring season caused by winter storms, alongside weaker end-market conditions.

Black said March’s delayed spring selling season and “increased macroeconomic uncertainty and higher interest rates” weighed on both new residential construction and the repair and upgrade market. Elema added that February and most of March were “particularly slow” as storms disrupted customer activity and delayed applications, though sales activity improved late in the quarter and volume “has improved in April compared to the first quarter.”

Elema broke down the organic daily sales performance as a 4% decline in volume, partially offset by a 3% increase in pricing. Pricing was described as “strong and broad-based,” despite continued deflation in certain commodities. Elema noted grass seed and PVC pipe were down 10% and 8%, respectively, in the quarter, but said the overall deflationary impact moderated compared with prior periods.

Margin expansion driven by pricing, private label, and small-customer momentum

Gross profit increased 3% to $319 million, and gross margin expanded 90 basis points to 33.9%. Elema said the improvement reflected “strong execution of our commercial initiatives,” including private label momentum, growth with small customers, “solid price realization,” and vendor support. These tailwinds were partially offset by higher freight and distribution costs and deflation in certain commodity products.

Black highlighted two commercial initiatives he said contributed meaningfully to gross margin expansion and market share gains:

• Small-customer growth: The company achieved positive organic daily sales growth with small customers, which Black described as an area where SiteOne has lower share than with larger customers.
• Private label: Black said sales of the company’s “high-growth private label product lines” increased more than 40% during the quarter, while total private label sales rose 10%.

During the Q&A, Black clarified that the more than 40% increase applied to higher-growth private label lines including Pro-Trade (lighting and landscape supplies), Portfolio (nursery), and Solstice Stone (hardscapes). Including LESCO, total private label grew 10% in the quarter. Black said private label represents “approximately 15%” of sales, and SiteOne aims to increase private label penetration by about 100 basis points per year, with a longer-term goal of “25%-30%.”

Costs, profitability, and balance sheet updates

Selling, general, and administrative expenses rose to $350 million from $343 million, and SG&A as a percentage of net sales increased about 70 basis points to 37.2%, driven primarily by the decline in organic daily sales. Even so, Elema said SG&A in the base business on an adjusted basis was flat year-over-year, citing tight cost management and productivity efforts.

Adjusted EBITDA increased 14% to $25.5 million and adjusted EBITDA margin improved 30 basis points to 2.7%. The company reported a net loss attributable to SiteOne of $26.6 million, compared with $27.3 million in the prior-year period.

SiteOne also repurchased approximately 155,000 shares for about $20 million at an average price of $128.90 per share during the quarter, Elema said, with an additional 6,000 shares repurchased after quarter-end for about $0.8 million. Elema characterized the approach as opportunistic, while emphasizing that the company remains focused first on growth and M&A, balancing repurchases with acquisition activity.

On liquidity, Elema said net debt ended the quarter at $585 million, with net debt to trailing 12-month adjusted EBITDA of 1.4x, within SiteOne’s targeted 1x–2x range. Available liquidity was approximately $502 million, including $84 million of cash and $418 million of capacity under its asset-based lending facility. After quarter-end, the company amended its ABL facility and extended maturity to April 2031.

Acquisitions: Bourget Flagstone and Reinders

SiteOne completed two acquisitions in the first quarter totaling about $110 million of trailing 12-month net sales, SVP of Strategy and Development Daniel Laughlin said.

Laughlin said SiteOne acquired Bourget Flagstone Co. on Jan. 13, a wholesale distributor of hardscape products with one location in Santa Monica, California. He said the deal establishes a presence in Santa Monica and surrounding areas and provides a “strategically located site” to expand hardscapes in Southern California.

On March 16, the company acquired Reinders, a fifth-generation family-owned distributor with 12 locations across the Midwest focused on irrigation, agronomics, holiday and landscape lighting, and landscape supplies. Laughlin said Reinders expands SiteOne’s Midwest footprint and strengthens irrigation and agronomics capabilities, with a team known for technical expertise and customer service. Black said the company expects “pretty significant synergies” given overlap in product categories, and noted Reinders has meaningful digital capabilities.

Asked about Reinders’ earnings contribution, Black agreed with an analyst’s framing that the acquisition should contribute meaningfully to EBITDA for the year, while noting the company did not have a full quarter of ownership. He added that Reinders provides “more insurance for our range” amid softer market conditions.

Outlook: pricing tailwind, soft end markets, and EBITDA guidance

Management said it expects demand conditions to remain challenging in 2026, though pricing is expected to be supportive. Black said SiteOne now expects pricing to contribute 2%–3% to 2026 sales growth, supporting organic daily sales growth and gross margin expansion. Elema said the company implemented price increases on certain products such as fertilizer starting April 1, citing supply disruptions related to conflict in the Middle East.

Black outlined expectations by end market:

• New residential construction (20% of sales): expected to be down for full-year 2026; Black later characterized the decline as “mid to high single digits.”
• New commercial and recreational construction (14% of sales): expected to be flat; Black cited slightly positive project-services meeting activity and said customers “remain bullish.”
• Repair and upgrade (30% of sales): expected to be down slightly due to macro uncertainty and lower consumer confidence, despite strong long-term fundamentals.
• Maintenance (36% of sales): expected to continue growing steadily in 2026, following strong volume growth in 2025 and continued market share gains so far in 2026.

Overall, Black said the company expects flat sales volume for the year; combined with pricing gains, that equates to low single-digit organic daily sales growth. The company expects 2026 gross margin to exceed 2025, driven by price realization and commercial initiatives, partially offset by higher freight and logistics costs. Elema said the company still expects SG&A leverage for the full year, primarily in the second and third quarters, though he noted the fourth quarter will be impacted by an extra week.

Black said fiscal 2026 includes a 53rd week that falls in December, which management expects will reduce adjusted EBITDA by $4 million to $5 million because it is “a very slow sales period” and “traditionally loss-making” for SiteOne. Including the 53rd-week impact, the company guided to full-year 2026 adjusted EBITDA of $425 million to $455 million, excluding any contribution from unannounced acquisitions.

Black also announced SiteOne plans to host an Investor Day on June 23–24 in Atlanta, where the company intends to provide updates on performance, strategy, and long-term initiatives.

About SiteOne Landscape Supply NYSE: SITE

SiteOne Landscape Supply is a leading distributor of landscape supplies and irrigation equipment in North America. The company serves a broad range of customers, including independent landscapers, lawn and garden retailers, municipalities and other commercial landscape professionals. Its product portfolio spans irrigation and lighting controls, pipes and fittings, fertilizers and soils, lighting fixtures, hardscapes, outdoor lighting systems and related installation accessories.

In addition to core product lines, SiteOne offers agronomic services designed to optimize turf and plant health, as well as online tools and training resources to help customers plan, specify and manage projects more efficiently.

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