SiteOne Landscape Supply Inc (SITE) Q4 2025 Earnings Call Highlights: Strong Growth Amid Market …

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Thu, February 12, 2026 at 4:02 AM GMT+9 5 min read

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**Net Sales Growth:** 3% increase in Q4 2025; 4% increase for the full year 2025.

**Organic Daily Sales Growth:** 2% increase in Q4 2025; 1% increase for the full year 2025.

**Adjusted EBITDA:** 18% growth in Q4 2025 to $37.6 million; 10% growth for the full year 2025 to $414.2 million.

**Adjusted EBITDA Margin:** Expanded by 50 basis points to 3.6% in Q4 2025; improved to 8.8% for the full year 2025.

**Gross Margin:** Increased by 80 basis points to 34.1% in Q4 2025; increased by 40 basis points to 34.8% for the full year 2025.

**SG&A as a Percentage of Net Sales:** Decreased by 100 basis points to 35% in Q4 2025; decreased by 40 basis points to 30.1% for the full year 2025.

**Net Income:** $151.8 million for the full year 2025, up from $123.6 million in 2024.

**Branch Consolidations and Closures:** 20 branches consolidated and closed in Q4 2025.

**Acquisitions:** Eight acquisitions completed in 2025, adding approximately $55 million in trailing 12-month sales.

**Cash Flow from Operating Activities:** $301 million for the full year 2025, up from $283 million in 2024.

**Net Debt:** Reduced to $330 million at the end of 2025 from $412 million at the end of 2024.

**Available Liquidity:** $768 million at the end of 2025.

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Release Date: February 11, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

SiteOne Landscape Supply Inc (NYSE:SITE) achieved 4% net sales growth and 10% growth in adjusted EBITDA for the full year 2025, despite flat pricing and lower end market demand.

The company completed eight acquisitions in 2025, adding approximately $55 million in trailing 12-month sales, and has a robust pipeline for 2026.

SiteOne Landscape Supply Inc (NYSE:SITE) improved its gross margin by 40 basis points to 34.8% in 2025, driven by better price realization and commercial initiatives.

The company increased its mix of private label products by over 100 basis points, contributing to gross margin improvement.

Digital sales grew by over 120% in 2025, with a significant increase in regular users, enhancing customer engagement and market share.

Negative Points

SiteOne Landscape Supply Inc (NYSE:SITE) faces end market uncertainty, particularly in new residential construction, which is expected to decline further in 2026.

The company anticipates a $4 million to $5 million EBITDA headwind in 2026 due to an extra week in fiscal December, a traditionally slow sales period.

Higher freight and logistics costs partially offset gross margin improvements, impacting overall profitability.

The company closed 20 branches in the fourth quarter of 2025, which negatively impacted SG&A by $6 million.

SiteOne Landscape Supply Inc (NYSE:SITE) expects continued inflationary pressures on wages and overall SG&A, which could affect operating leverage.

 






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Q & A Highlights

Q: Can you confirm if the EBITDA contribution margins were over 20% on just 1% organic growth in 2025, and if similar margins are expected in 2026? A: Yes, those numbers are accurate. We achieved this through improving our gross margin and gaining SG&A leverage, along with improvements in our focus branches. We expect similar results in 2026 due to these ongoing initiatives. - Doug Black, CEO

Q: What are the key levers for cost management in 2026, and are there any significant offsets to consider? A: Key levers include continued improvements in Pioneer profitability, overcoming deflation, and harvesting investments made during tougher periods. We do face a headwind from the expansion of our distribution centers, which will initially be dilutive. - Doug Black, CEO

Q: Are you expecting low-single-digit organic growth in Q1 2026, and how has the year started? A: Yes, we expect balanced growth throughout the year, with stronger pricing in the first half. The year has started reasonably well, with January being good and February somewhat weather-affected, aligning with our 2026 outlook. - Doug Black, CEO

Q: How are you thinking about market share gains in 2026, and is competition still rational? A: We are confident in gaining market share, despite a flat market outlook. Competition remains similar, with a focus on large customers, but we are gaining share with small to mid-sized customers. - Doug Black, CEO

Q: What are the expected operating leverage benefits in 2026 from internal initiatives, and could there be more branch closures? A: We expect similar contributions from focus branches as in 2025. While we don’t plan significant closures, we will continue to optimize our branch network as leases come up. - Doug Black, CEO

Q: What is the long-term target for private label sales growth, and what categories offer the most opportunity? A: We aim for private label sales to reach 25% to 30% of total sales long-term, with steady annual growth. Key categories include agronomics, lighting, and hardscapes. - Doug Black, CEO

Q: Can you quantify the organic maintenance sales growth in 2025 and expectations for 2026? A: Organic growth for maintenance-related products was 7% in 2025, driven by volume. We expect continued market share gains and steady growth in 2026. - Doug Black, CEO

Q: What gives you confidence in the M&A pipeline normalization in 2026, and how would you adjust capital allocation if activity remains soft? A: Active discussions suggest a return to typical deal sizes. If M&A activity is light, we would consider returning capital to shareholders through share repurchases. - Scott Salmon, EVP Strategy and Development

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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