SiteOne Landscape Supply, Inc.

What they do

SiteOne distributes hardscapes, irrigation supplies, fertilizer and control products, landscape accessories, nursery goods, outdoor lighting, and ice melt to landscape professionals who design, install, and maintain lawns, gardens, golf courses, and other outdoor spaces. As of June 28, 2026, the company operated over 680 branch locations across 45 U.S. states and five Canadian provinces, offering roughly 180,000 SKUs sourced from approximately 6,000 suppliers. It also provides consultative services such as irrigation project take-offs, commercial project planning, lead generation, and technical seminars through SiteOne University.

Revenue drivers

• Maintenance end market — Approximately 36% of 2025 Fiscal Year Net sales came from products for maintenance of existing residential, commercial, and recreational properties, which management describes as recurring demand that provides stability across economic cycles.
• New construction end market — Roughly 34% of 2025 Fiscal Year Net sales related to new construction of homes, commercial buildings and facilities, and recreational spaces, split by construction sector as approximately 60% residential, 32% commercial/institutional, and 8% recreational and other.
• Repair and upgrade end market — About 30% of 2025 Fiscal Year Net sales came from repair and upgrade of existing landscapes, which management says benefits from increases in existing home sales and rising consumer spending.
• Acquisitions — Acquisitions contributed $49.2 million, or 3%, to Net sales growth in Second Quarter 2026, with management noting acquisitions led by Reinders continue to perform well.

Recent performance

Second Quarter 2026 Net sales rose 5% to $1,530.7 million from $1,461.6 million, with Organic Daily Sales up 1% on roughly 3% price contribution offset by softer end-market demand and acquisitions adding 3%. Gross profit increased 6% to $564.5 million and gross margin expanded 50 basis points to 36.9%, driven by price realization and commercial initiatives partly offset by higher freight and distribution costs and commodity deflation. SG&A rose to $370.7 million and SG&A as a percentage of Net sales increased 30 basis points to 24.2%. Net income attributable to SiteOne increased 8% to $139.3 million, and Adjusted EBITDA rose 5% to $237.2 million, with Adjusted EBITDA margin flat at 15.5%. For the six months ended June 28, 2026, net cash provided by operating activities was $31.1 million versus $7.1 million a year earlier.

Strategy

Management is pursuing organic growth and acquisitions to gain market share and drive margin expansion, citing a robust acquisition pipeline, a flexible business model, and scale and resources as advantages. The company repurchased $93.8 million of shares under its authorization during the second quarter and an additional $10.0 million in July, and acquired the remaining 25% interest in Devil Mountain Wholesale Nursery. It is implementing price increases on certain products and measures to offset rising fuel costs, and is executing commercial and operational initiatives while managing spending to reduced demand. SiteOne emphasizes its balanced end-market mix, broad product portfolio, and geographic coverage as sources of resilience in softer markets.

Risks

• Construction cyclicality — Declines in new residential and commercial construction or in repair and upgrade spending could lower Net sales, cash flows, and profitability, and such downturns have been severe in the past.
• End-market softening — Management estimates new residential construction is down high-single digits and repair and upgrade down mid-single digits, more than offsetting modest maintenance growth and flat new commercial construction.
• Cost and tariff pressure — Supply chain disruptions including U.S. tariff policies, product or labor shortages, commodity price volatility, and fuel inflation could raise operating costs and pressure margins.
• Acquisition and integration risk — The company's growth strategy depends on acquisitions, which carry integration risks and increased competition for deals.

Outlook

Management expects challenging end markets to persist through the full year, with new residential construction down high-single digits and repair and upgrade down mid-single digits more than offsetting modest maintenance growth and flat new commercial construction. It projects overall prices to increase approximately 3% for the 2026 Fiscal Year and anticipates sustained pressure on Net sales growth and Net income for the foreseeable future. The company says it remains confident in its 2026 outlook and its ability to execute its strategy.