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Sep 28
SiteOne Q3 2025 Earnings Report
SiteOne reported strong operational performance in Q3 2025, with double-digit Adjusted EBITDA growth and market share gains.
Key Takeaways
SiteOne Landscape Supply, Inc. delivered a strong third quarter in 2025, with net sales increasing to $1,258.2 million, a 4% rise year-over-year. The company achieved a 3% Organic Daily Sales growth and expanded its gross margin by 70 basis points to 34.7%. Net income attributable to SiteOne surged by 33% to $59.1 million, and Adjusted EBITDA grew by 11% to $127.5 million, demonstrating meaningful operating leverage despite challenging end markets.
Net sales for Q3 2025 increased by 4% to $1,258.2 million compared to the prior year.
Organic Daily Sales grew by 3%, driven by sales initiatives and improved pricing.
Gross profit rose by 6% to $437.2 million, with gross margin improving by 70 basis points to 34.7%.
Net income attributable to SiteOne increased by 33% to $59.1 million, and Adjusted EBITDA grew by 11% to $127.5 million.
SiteOne
SiteOne
Forward Guidance
SiteOne expects end-market softness in new residential construction and repair and upgrade to persist through the end of the year, with some stabilization in the latter. Maintenance end market is expected to grow modestly, and new commercial construction demand to be flat. Pricing is anticipated to be up 1% to 2% in Q4, with low single-digit Organic Daily Sales growth. The company plans to consolidate or close additional branches in Q4, incurring a charge of $4 million to $6 million to Adjusted EBITDA. Full-year Adjusted EBITDA is projected to be in the range of $405 million to $415 million.
Positive Outlook
- Anticipated low single-digit Organic Daily Sales growth for the fourth quarter.
- Expected pricing increase of 1% to 2% in the fourth quarter as commodity price deflation dissipates.
- Strong cost control and focus branch improvement initiatives are in place.
- Improved price realization and contributions from acquisitions are expected to expand Adjusted EBITDA margin for the full year 2025.
- Maintenance end market (35% of sales) is expected to continue modest growth.
Challenges Ahead
- End market demand in new residential construction (21% of sales) is expected to continue to be soft.
- End market demand in repair and upgrade (30% of sales) is expected to continue to be soft, though with some stabilization.
- New commercial construction demand (14% of sales) is expected to be flat.
- Plans to consolidate or close additional branches in Q4 will incur a charge of approximately $4 million to $6 million to Adjusted EBITDA.
- The full-year Adjusted EBITDA guidance of $405 million to $415 million includes the anticipated fourth-quarter charge and does not include contributions from unannounced acquisitions.