SiteOne reports 4% sales gain, softer expectation

SiteOne Landscape Supply announced earnings for its third quarter 2025 ended September 28, 2025. The company reported its net sales increased to $1,258.2 million, or 4%, compared to $1,208.8 million for Q3 2025. The company’s organic daily sales increased 3% compared to the prior year period, primarily driven by sales initiatives and improved pricing, it said. Acquisitions contributed $12.5 million, or 1%, to net sales growth for the quarter.

Gross profit increased 6% to $437.2 million for Q3 2025 compared to $411.0 million for the prior year period. Gross margin improved by 70 basis points to 34.7%, primarily due to improved price realization and benefits from our commercial initiatives. Selling, general and administrative expenses Q3 2025 increased 2% to $357.4 million from $349.1 million for the prior year period. 

“We are pleased to report another quarter of strong operational performance, delivering double-digit year-over-year Adjusted EBITDA growth and meaningful operating leverage despite challenging end markets,” said Doug Black, SiteOne’s chairman and CEO. “Our strong teams continued to leverage our capabilities to gain market share resulting in Organic Daily Sales growth of 3%, with all product lines and nearly all regions contributing positively. Pricing was up 1% in the third quarter reflecting strong execution and operating discipline, as we more than offset commodity headwinds and drove gross margin expansion through our strategic initiatives. We also completed six acquisitions year-to-date which expand our capabilities to serve our customers in those local markets.”

Outlook

“We expect the end market demand in new residential construction (21% of sales) and repair and upgrade (30% of sales) to continue to be soft during the remainder of the year, though we are seeing some stabilization in the latter. The maintenance end market (35% of sales) should continue to grow modestly, and we expect new commercial construction demand (14% of sales) to be flat. We expect pricing, which was up 1% in the third quarter, to be up 1% to 2% in the fourth quarter as commodity price deflation continues to dissipate,” Black continued. “With the benefit of our commercial initiatives, we expect sales volume to be modestly positive, yielding low single-digit Organic Daily Sales growth for the fourth quarter. With strong cost control, focus branch improvement, improved price realization, and contributions from acquisitions, we remain on track to expand our Adjusted EBITDA margin for the full year 2025.”

SiteOne said it will consolidate or close additional branches in the fourth quarter “to address the potential for continued soft market conditions and to further optimize our footprint and cost structure,” it said, and the company will incur a corresponding charge to adjusted EBITDA of approximately $4 million to $6 million. “We expect to retain most of the sales from these branches.”