SiteOne Landscape Supply reported earnings for its fourth quarter and fiscal year ended December 28, 2025.

SiteOne Landscape Supply, Inc. (the "Company" or "SiteOne") (NYSE: SITE) announced earnings for its fourth quarter ("Fourth Quarter 2025") and full fiscal year ended December 28, 2025 ("Fiscal 2025").

"The fourth quarter marked a good close to a challenging year as we delivered positive Organic Daily Sales growth and continued adjusted EBITDA margin expansion despite a persistently unfavorable operating environment," said Doug Black, SiteOne's Chairman and CEO. "We benefitted from positive pricing during the quarter, and we expect this to continue in 2026 as the effects of commodity deflation dissipate. For the full year, we are pleased with our performance against the many headwinds, achieving 4% Net sales growth, Gross margin improvement, SG&A leverage, and double-digit adjusted EBITDA growth compared to the prior-year period. These results reflect our team's outstanding execution of our commercial and operational initiatives and demonstrate our improved capability to gain market share and expand our adjusted EBITDA margin. With a winning strategy, strong teams, superior execution, a balanced business mix, and market leading position, we are confident in our ability to provide differentiated value for our customers and suppliers while achieving excellent performance and growth for our shareholders in the years to come."

Fourth Quarter 2025 Results

Net sales for the Fourth Quarter 2025 increased to $1.05 billion, or 3%, compared to $1.01 billion for the prior-year period. Organic Daily Sales increased 2% compared to the prior-year period, primarily driven by improved pricing, our sales initiatives, and solid demand in the maintenance end market. Acquisitions contributed $12.2 million, or 1%, to Net sales growth for the quarter.

Gross profit increased 6% to $356.8 million for the Fourth Quarter 2025 compared to $337.6 million for the prior-year period. Gross margin improved 80 basis points to 34.1%, primarily due to improved price realization and a positive contribution from acquisitions.

Selling, general and administrative expenses ("SG&A") for the Fourth Quarter 2025 increased to $365.9 million from $364.5 million for the prior-year period. SG&A as a percentage of Net sales decreased 100 basis points to 35.0%, primarily driven by lower one-time charges compared to the prior-year period.

Net loss attributable to SiteOne for the Fourth Quarter 2025 was $9.0 million, compared to a Net loss of $21.7 million for the prior-year period, driven by Net sales growth, improved gross margin, and SG&A leverage.

Adjusted EBITDA1 for the Fourth Quarter 2025 increased 18% to $37.6 million, compared to $31.8 million for the prior-year period. Adjusted EBITDA margin improved 50 basis points to 3.6%.

Fiscal 2025 Results

Net sales for Fiscal 2025 increased to $4.70 billion, or 4%, compared to $4.54 billion for the fiscal year ended December 29, 2024 ("Fiscal 2024"). Organic Daily Sales for Fiscal 2025 increased 1% compared to Fiscal 2024, due to steady growth in the maintenance end market and execution of our sales initiatives, partially offset by softer demand in the new residential construction and repair and upgrade end markets. Acquisitions contributed $110.7 million, or 2%, to Net sales growth for Fiscal 2025.

Gross profit for Fiscal 2025 increased to $1.64 billion, up 5% compared to $1.56 billion for the prior-year. Gross margin for the year improved 40 basis points to 34.8% compared to 34.4% in Fiscal 2024. The increase in gross margin reflects improved price realization, benefits from our commercial initiatives, and a positive contribution from acquisitions, partially offset by higher freight and logistics costs supporting our growth.

SG&A for Fiscal 2025 increased to $1.42 billion from $1.39 billion in Fiscal 2024. SG&A as a percentage of Net sales decreased by 40 basis points to 30.1% compared to the prior-year, primarily driven by improved operating leverage from productivity initiatives and better cost alignment with market demand. SG&A as a percentage of Net sales for the Base Business decreased 50 basis points compared to the prior-year.

Our effective tax rate for Fiscal 2025 was 22.5% compared to 22.4% for Fiscal 2024. We currently expect our 2026 effective tax rate to be between 25.0% and 26.0%, excluding discrete items such as excess tax benefits.

Net income attributable to SiteOne for Fiscal 2025 increased to $151.8 million, or 23%, compared to $123.6 million for Fiscal 2024. The increase in Net income primarily reflects Net sales growth, improved gross margin, and SG&A leverage.

For the year, Adjusted EBITDA1 increased 10% to $414.2 million, compared to $378.2 million in Fiscal 2024. Adjusted EBITDA margin improved 50 basis points to 8.8%, compared to Fiscal 2024.

Cash provided by operating activities increased $17.1 million to $300.5 million in Fiscal 2025 compared to $283.4 million in Fiscal 2024, primarily due to the increase in Net income.

Balance Sheet and Liquidity

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 December 28, 2025, was $329.6 million compared to $411.7 million as of December 29, 2024. Net debt to Adjusted EBITDA1 for the last twelve months was 0.8 times compared to 1.1 times at the end of the prior fiscal year.

As of December 28, 2025, Cash and cash equivalents was $190.6 million and available capacity under the ABL Facility was $577.8 million.

Outlook

"With most of the commodity deflation behind us, we expect a more typical year of pricing in 2026 with overall prices increasing 1% to 3% for the full year," Doug Black continued. "In terms of end markets, we believe overall demand will be flat in 2026, with steady growth in maintenance offsetting a decline in new residential construction, and with flat demand in our repair and upgrade and new commercial construction end-markets. With the benefit of our commercial initiatives, we expect to achieve positive sales volume growth, yielding low single-digit Organic Daily Sales growth for the full year. We also expect to increase our Gross margin through increased price realization and strong growth with private label products and small customers. We expect to achieve continued SG&A leverage through our operational initiatives, which include focus branch improvements and delivery cost reduction. Overall, including contributions from acquisitions, we expect to continue expanding our adjusted EBITDA margin in 2026."

In fiscal year 2026, our results will include an extra week compared to the prior year period. The extra week occurs in fiscal December during a historically slower sales period and, as a result, is expected to reduce Adjusted EBITDA for the year by approximately $4 million to $5 million.

With all these factors in mind and including the negative effect of the 53rd week, we expect Adjusted EBITDA for fiscal year 2026 to be in the range of $425 million to $455 million. Our guidance does not include any contributions from unannounced acquisitions.

Reconciliation for the forward-looking full-year 2026 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, February 11, 2026, at 8:00 a.m. Eastern Time, to discuss the Company's financial results.

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