SiteOne Landscape Supply (SITE -3.09%), the largest national wholesale distributor of landscape supplies in the U.S, released its earnings on July 30, 2025. The company reported GAAP revenue of $1,461.6 million and diluted earnings per share (GAAP) of $2.86. Both metrics missed analyst expectations, with revenue (GAAP) falling $6.51 million short and EPS $0.08 under the consensus. Despite the miss, SiteOne delivered year-over-year growth in GAAP net sales and GAAP net income, with gross margin and adjusted EBITDA margin both expanding. The quarter showed progress in cost management and acquisition integration but highlighted flat organic sales and continued external pressures in key end markets.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS – Diluted (GAAP) | $2.86 | $2.94 | $2.63 | 8.7 % |
| Revenue (GAAP) | $1,461.6 million | $1,468.11 million | $1,413.9 million | 3.4 % |
| Adjusted EBITDA | $226.7 million | $210.5 million | 7.7 % | |
| Gross Margin | 36.4 % | 36.1% | 0.3 pp | |
| SG&A as % of Revenue | 23.9 % | 24.3 % | (0.4) pp |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
About the Business and Key Success Factors
The company is a wholesale distributor serving professional landscape contractors and golf courses. Its product range includes irrigation supplies, fertilizer, nursery products, hardscapes, lighting, and landscape accessories. With more than 690 branches across North America and a customer base of over 430,000, SiteOne’s network gives it access to a wide range of end markets and seasonal customer needs.
In recent years, SiteOne has focused on expanding through strategic acquisitions, rolling out digital initiatives, and strengthening supplier and customer relationships. Growth has been achieved by adding new branches and integrating smaller businesses, improving supply chain and inventory systems, and leveraging the scale of its nationwide platform. Sustaining leadership in the fragmented landscape supply sector depends on balancing organic growth, new market penetration, and effective integration of acquired companies.
Quarterly Highlights and Performance Drivers
Revenue (GAAP) grew 3% compared to the prior year, reaching $1,461.6 million. with organic daily sales flat. Management noted “solid growth in the maintenance end market,” which offset weaker trends in residential construction and repair or upgrade segments. Maintenance represented 35% of total net sales in FY2024, but softness in new residential construction (21%) and repair/upgrade (30%) end markets continues in FY2025, due largely to “ongoing economic uncertainty, elevated interest rates, weak consumer confidence, and low existing home sales.” New commercial construction demand was broadly flat in FY2025, characterizing the operating backdrop as stable but not robust for these sectors.
Gross profit rose 4% to $531.4 million. Gross margin improved by 0.3 percentage points to 36.4%, supported by better price realization, digital and operational initiatives, and a favorable product mix from acquisitions. Pricing overall was flat, but management stated that improved price realization and a positive contribution from acquisitions helped increase profit margins. SG&A—selling, general, and administrative expense—totaled $349.1 million but declined as a percentage of revenue, down from 24.3% to 23.9%. This reflects ongoing cost reduction programs and branch-level efficiency improvements launched in 2024. Adjusted EBITDA rose 8% to $226.7 million, with margin expanding to 15.5%, indicating tighter cost controls and leverage on overhead despite muted sales growth.
Cash provided by operating activities came in at $136.7 million, a $10.7 million decrease compared to last year’s period. The decline in cash generation was mainly due to increased inventory purchases ahead of anticipated tariff-driven price hikes and efforts to manage supply chain risks. Management also repurchased $54.3 million of shares during the quarter, returning capital to shareholders and maintaining financial flexibility for mergers or acquisitions. SiteOne closed four acquisitions year-to-date, including businesses like Green Trade Nursery and Grove Nursery, helping to grow its presence in targeted regional markets. Integration of these new assets is designed to strengthen its nursery product category and branch network.
Initiatives in digital operations—such as rolling out DispatchTrack for delivery efficiency and expanding use of customer relationship management (CRM) tools—have supported SG&A improvements. Digital sales engagement and inside/outside salesforce enhancements continue to add efficiency and support market share gains. Additionally, the expansion of bilingual branches (now at 65 %) and targeted outreach to Hispanic customers reflect efforts to deepen relationships with key customer groups.
There was no mention of dividends paid or changes to share repurchase trends aside from the amounts deployed during the quarter.
Looking Ahead and Management Outlook
Management kept full-year 2025 guidance unchanged, forecasting Adjusted EBITDA in the $400 million to $430 million range. The outlook suggests ongoing focus on cost control and adjusted EBITDA margin expansion despite caution around end market demand. For the third quarter, company leadership projected flat pricing, with the fourth quarter likely to see a modest pickup of 1% to 2%, driven by expected inflation in some categories but dampened by continued deflation in grass seed prices. Organic daily sales are expected to show low single-digit growth for the remainder of the year.
Management did not provide specific revenue or EPS targets for the next quarter but noted that the outlook for the new residential and repair/upgrade markets remains soft. Commentary highlighted continued acquisition activity as a source of future growth, but cautioned that the full-year outlook does not factor in any benefit from yet-to-be-announced deals. Investors will want to monitor organic sales trends, pricing realization, cash flow, and the pace of further acquisitions in the coming quarters.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
