SiteOne Landscape Supply (SITE) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 increased 4% year-over-year to $939.4 million, driven by acquisitions, while organic daily sales declined 1% due to a late spring, lower commodity prices, and softer end markets.

• Adjusted EBITDA grew 6% to $22.4 million, with margin up 10 basis points to 2.4%.

• Net loss attributable to the company widened to $27.3 million from $19.3 million in Q1 2024, mainly due to higher SG&A expenses.

• Acquisitions of Pacific Nurseries and Green Trade Nursery closed, supporting inorganic growth and expanding market presence.

• Maintained strong cost control, with base business SG&A down 3% and progress on underperforming branches.

Financial highlights

• Gross profit rose 3% to $309.8 million; gross margin contracted 30 bps to 33.0% due to lower price realization and higher freight costs.

• SG&A expenses increased 5% to $343.2 million, or 36.5% of net sales, up 30 bps year-over-year.

• Working capital at quarter-end was $1.0 billion, up from $910 million last year, mainly due to acquisitions and inventory purchases ahead of tariffs.

• Capital expenditures were $15 million, up from $9 million in Q1 2024, reflecting investment in branch improvements.

• Cash used in operating activities increased by $30.3 million to $129.6 million, mainly due to early inventory purchases.

Outlook and guidance

• Full-year 2025 adjusted EBITDA expected in the range of $400–$430 million, excluding unannounced acquisitions.

• Organic daily sales growth for 2025 projected to be low single digits, with end markets expected to be flat to slightly down.

• Gross margin for 2025 anticipated to be similar to 2024; operating leverage expected to improve adjusted EBITDA margin.

• Pricing outlook revised to flat to up 1% for 2025, reflecting supplier increases due to tariffs and commodity deflation moderation.

• Continued focus on cost control, gross margin management, and SG&A efficiency.