SiteOne Landscape Supply (SITE) Q1 2026 earnings summary

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 weather, partially offset by 3% pricing and $12.4 million from acquisitions.

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

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

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

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

Financial highlights

• SG&A expenses rose to $349.9 million (37.2% of sales), up 70 bps due to lower sales volume, but base business SG&A was flat on an adjusted basis.

• Net debt at quarter end was $584.5 million, with net debt/Adjusted EBITDA at 1.4x, down from 1.5x last year.

• Cash used in operating activities was $122.1 million, down from $129.6 million last year.

• Working capital stood at $1.1 billion, up from $1.0 billion year-over-year.

• Cash and cash equivalents were $84 million, with $418 million available under the ABL Facility.

Outlook and guidance

• Expect low single-digit organic daily sales growth for 2026, driven by 2–3% pricing growth and flat sales volume.

• Gross margin anticipated to be higher in 2026, supported by price realization, private label growth, and commercial initiatives, partially offset by higher freight/logistics costs.

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

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

• Guidance excludes contributions from unannounced acquisitions.