SiteOne Landscape Supply, Inc.

Second-quarter net sales increased 5% to approximately $1.53 billion versus approximately $1.46 billion a year ago. Organic daily sales increased 1%, with acquisition sales contributing approximately $49 million, or 3%, while organic volume declined approximately 2% and pricing contributed approximately 3%. Gross profit increased 6% to approximately $565 million and gross margin improved 50 basis points to 36.9%. Adjusted EBITDA increased 5% to $237.2 million, with adjusted EBITDA margin at 15.5%; net income attributable to SiteOne increased 8% to $139.3 million. For 2026, management expects pricing to contribute about 3%, organic daily sales to be flat to up 1%, gross margin to be higher than 2025, SG&A as a percent of sales to be approximately flat, and adjusted EBITDA to be $425 million to $455 million. The company said the extra 53rd week will reduce adjusted EBITDA by $4 million to $5 million.

Doug Black emphasized that SiteOne is outperforming a tough market through commercial and operational initiatives, tight spending control, and acquisitions. He framed the business as well positioned for long-term share gains, margin expansion, and value creation, pointing to a fragmented market with only about 13% share and a much larger addressable market than previously estimated. His tone was confident and steady, but clearly acknowledged near-term weakness in new residential and repair-and-upgrade demand.

Eric Elema said pricing was 3% in the quarter, gross margin improved to 36.9%, and SG&A rose to 24.2% of sales, driven mainly by modest volume, fuel, and health care inflation. He noted cash from operations increased to $153 million, capex was $18 million, net debt was about $556 million, and leverage remained 1.3x trailing adjusted EBITDA with about $530 million of available liquidity. He also highlighted $94 million of share repurchases in the quarter, year-to-date repurchases of $124 million through July, and an ABL maturity extension to April 2031.

Analysts focused on weaker volumes, asking how much of the softness came from Sun Belt new residential demand versus repair and upgrade, and whether pricing assumptions for PVC and fertilizer were realistic. Management said new residential weakness was worse in the Sun Belt and that repair and upgrade was broad-based, with fertilizer price spikes causing customers with fixed budgets to trim short-term purchases. They also said the full-year pricing outlook around 3% reflects offsets from lapping tariff-related benefits and fertilizer normalization, though further commodity inflation could push pricing higher.