SiteOne Landscape Supply (SITE) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 rose 3% year-over-year to $1,461.6 million, with organic daily sales flat and acquisitions contributing 3% to growth amid mixed end market demand.

• Gross profit increased 4% to $531.4 million, with gross margin up 30 basis points to 36.4%.

• Net income attributable to shareholders grew 7% to $129.0 million, and adjusted EBITDA rose 8% to $226.7 million, with margin up 60 basis points to 15.5%.

• Four acquisitions completed year-to-date, including Green Trade Nursery, Grove Nursery, and Nashville Nursery, supporting growth and synergies.

• $54.3 million of shares repurchased under authorization, the largest quarterly repurchase since program inception.

Financial highlights

• SG&A as a percentage of net sales decreased 40 basis points to 23.9% year-over-year.

• Working capital increased to $1.06 billion, mainly due to early inventory purchases ahead of tariffs.

• Net debt at quarter-end was $531.6 million, with net debt to adjusted EBITDA at 1.3x, unchanged from prior year.

• Cash provided by operating activities was $136.7 million, down from $147.4 million year-over-year.

• Capital expenditures for Q2 were $14.3 million, supporting branch investments.

Outlook and guidance

• Full-year 2025 adjusted EBITDA guidance remains $400–$430 million, excluding unannounced acquisitions.

• End market demand in new residential construction and repair/upgrade expected to remain soft, while maintenance is projected to grow modestly.

• Pricing expected to be flat in Q3 and up 1–2% in Q4, with low single-digit organic daily sales growth anticipated for the remainder of 2025.

• Gross margin expected to be slightly improved for the remainder of 2025.

• Continued prudent M&A activity expected amid market uncertainty.