Siteone Landscape Supply — Financial Results
Revenue Grew 4%, But Organic Growth Was Mostly Acquisition-Driven
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Net sales | $4,704.8M | $4,540.6M | +4% |
| Organic Daily Sales | $17.8M/day | $17.6M/day | +1% |
| Acquisition contribution to Net sales | $110.7M | — | — |
Total sales grew 4%, but only 1% of that came from existing branches — the rest was fueled by acquisitions. Agronomic products (fertilizer, herbicides, ice melt) were the bright spot, with organic daily sales up 7%, while landscaping products like hardscapes and irrigation slipped 1% due to weak new home construction and renovation activity. Pricing was essentially flat in 2025, a meaningful recovery from the 3% price decline experienced in 2024.
Margins Improved Modestly Despite a Tough Selling Environment
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Gross margin | 34.8% | 34.4% | +40 bps |
| SG&A as % of Net sales | 30.1% | 30.5% | -40 bps |
| Operating income | $238.1M | $192.3M | +24% |
Gross margin (the percentage of revenue left after product costs) edged up 40 basis points, helped by better pricing discipline and acquisition mix. At the same time, SG&A costs — covering wages, rent, and delivery — grew more slowly than sales, also improving by 40 basis points as a share of revenue. Together, these gains pushed operating income up 24%.
Net Income Jumped 23% to $151.8 Million
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Net income attributable to SiteOne | $151.8M | $123.6M | +23% |
| Adjusted EBITDA | $414.2M | $378.2M | +10% |
The combination of higher sales, better margins, and controlled costs produced a strong profit improvement. Adjusted EBITDA (a measure of operating cash earnings before interest, taxes, and non-cash items) rose 10% to $414.2 million. One headwind worth noting: interest expense rose 10% to $35.0 million after the company's interest rate hedges (contracts that locked in lower borrowing costs) expired in March 2025.
Steady Acquisition Pace Adds Branches but at a Slower Investment Rate
SiteOne completed 13 acquisitions in 2024–2025 combined, spending $175.9 million in total — but investing significantly less in 2025 than 2024, as reflected in investing cash outflows dropping from $177.1M to $83.4M. The 2025 deals were mostly small, single-location nursery and hardscapes distributors across the South and Midwest. Acquisitions remain a core part of the growth strategy, and management describes the pipeline as robust.
Strong Cash Generation and a Solid Balance Sheet
| Metric | 2025 | 2024 |
|---|---|---|
| Operating cash flow | $300.5M | $283.4M |
| Cash on hand | $190.6M | — |
| Gross long-term debt | $389.4M | $393.3M |
| Available ABL credit line | $577.8M | $581.2M |
The business generated $300.5 million in cash from operations, and carries a manageable debt load with no balance drawn on its $600 million revolving credit line. The company also bought back 816,888 shares at an average of $119.62 each during 2025, with $214.3 million remaining under its repurchase authorization.
Pricing Headwinds Easing, but Macro Uncertainty Remains the Key Risk
After two years of commodity deflation dragging on revenue (grass seed and PVC pipe prices fell sharply), management expects pricing to contribute a positive 1%–3% to organic sales growth in 2026. However, the company is candid that elevated interest rates, weak existing home sales, and soft consumer confidence continue to suppress demand in its highest-margin segments — new home construction and repair/upgrade projects. The maintenance market (lawn care, fertilizer applications) has remained steadier and partially offset these headwinds.