SiteOne Landscape Supply (SITE) investor relations material

Executive summary

• Net sales for Q1 2026 were $940.1 million, up $0.7 million year-over-year, with organic daily sales down 1% due to soft demand and unfavorable weather, partially offset by 3% pricing growth and $12.4 million from acquisitions.

• Gross profit rose 3% to $318.8 million, with gross margin improving by 90 basis points to 33.9% due to price realization and commercial initiatives.

• Adjusted EBITDA increased 14% to $25.5 million, with margin up 30 basis points to 2.7%.

• Net loss attributable to shareholders was $26.6 million, a slight improvement from $27.3 million in Q1 2025, primarily due to higher gross profit offset by increased SG&A expenses.

• Completed acquisitions of Bourget Flagstone and Reinders, expanding product lines and geographic reach, and repurchased $20 million in shares.

Financial highlights

• Net sales: $940.1 million (+$0.7 million year-over-year); acquired sales contributed $12.4 million.

• Gross profit: $318.8 million (+3%); gross margin: 33.9% (+90 bps year-over-year).

• Adjusted EBITDA: $25.5 million (+14%); margin: 2.7% (+30 bps).

• Net loss: $26.6 million (improved from $27.3 million).

• SG&A expenses: $349.9 million, or 37.2% of net sales, up 70 bps year-over-year.

• Cash used in operating activities: $122.1 million (down from $129.6 million).

Outlook and guidance

• Pricing expected to rise 2–3% for 2026; sales volume anticipated to be flat, with low single-digit organic daily sales growth.

• Gross margin expansion expected through price realization, private label growth, and digital adoption.

• Full-year Adjusted EBITDA guidance is $425–$455 million, including a $4–$5 million negative impact from an extra week in December; guidance excludes unannounced acquisitions.

• End market demand expected to decline modestly, with new residential construction and repair/upgrade softness offset by maintenance and commercial growth.

• Management expects continued pressure on net sales and net income due to economic uncertainty and elevated interest rates.