SiteOne up 4% for Q1, expects flat year
On April 30, SiteOne Landscape Supply announced earnings for its first quarter ended March 30, 2025. It reported a net sales gain to $939.4 million, or 4%, compared to $904.8 million for the prior year period. Organic daily sales decreased 1% compared to the prior year period due to a later start to the spring selling season, lower prices for commodity products, and a softer repair and remodel end market. Acquisitions contributed $45.1 million, or 5%, to net sales growth for the quarter.
“We are pleased to report a solid start to 2025, with total sales growth of 4% and adjusted EBITDA growth of 6%,” said Doug Black, SiteOne’s chairman and CEO. “With the current uncertainty in the market, we are focused on delivering a solid year of performance and growth with strong cost control, good gross margin management, and by continuing to gain market share through our commercial initiatives. We also continue to execute our acquisition strategy with the addition of two high-performing companies year-to-date and with a robust pipeline of additional target companies.”
Outlook
“While the direct impact of tariffs is relatively small and manageable, the potential impact of ongoing uncertainty related to tariffs, inflation, and interest rates on consumer confidence and end market demand remains to be seen. Against this backdrop, we expect commodity price deflation to continue moderating in 2025 with declines in products like PVC pipe mitigated by increases across our other products. Overall, with the impact of tariffs, we currently expect pricing, which was down 1% in the first quarter, to be flat to slightly up for the full year 2025,” Black continued.
“In terms of end markets, we expect overall demand to be flat to slightly down with solid growth in maintenance, which represents 35% of our business, continued soft repair and upgrade demand, and resilient but uncertain demand in new residential and new commercial construction. With the benefit of our commercial initiatives, we continue to expect sales volume to be positive, yielding low single-digit organic daily sales growth for the full year. With the strong actions taken in 2024 to reduce cost combined with our operational initiatives, ongoing SG&A management, and contributions from acquisitions, we continue to expect to increase adjusted EBITDA margin in 2025.”
Given these trends, we continue to expect our full year adjusted EBITDA to be in the range of $400 million to $430 million. Our guidance does not include any contributions from unannounced acquisitions.
