SiteOne Landscape Supply (NYSE:SITE) executives said the company closed out fiscal 2025 with “solid results” and entered 2026 expecting positive pricing, continued benefits from cost actions taken last year, and additional contribution from acquisitions.
Fourth-quarter and full-year results
Chairman and CEO Doug Black said fourth-quarter net sales grew 3% with 2% organic daily sales growth, while adjusted EBITDA rose 18% versus the prior-year period. For the full year, the company reported 4% net sales growth, 1% organic daily sales growth, and 10% adjusted EBITDA growth despite what management characterized as flat pricing and lower end-market demand compared to 2024.
Gross profit increased 6% in the fourth quarter to $357 million, and gross margin expanded 80 basis points to 34.1%. For the full year, gross profit increased 5% and gross margin rose 40 basis points to 34.8%. Management attributed margin gains to improved price realization, commercial initiatives, and acquisitions, partially offset by higher freight and logistics costs, including the establishment of a fifth distribution center in the fourth quarter.
SG&A expense increased less than 1% to $366 million in the fourth quarter, while SG&A as a percentage of net sales decreased 100 basis points to 35%. Elema said the company consolidated and closed 20 branch locations in the quarter, negatively impacting SG&A by $6 million, including $4.5 million reflected in adjusted EBITDA. For the full year, SG&A rose 2% to $1.4 billion, and SG&A as a percentage of sales improved 40 basis points to 30.1%.
Adjusted EBITDA was $37.6 million in the fourth quarter (3.6% margin), up from $31.8 million a year earlier. Full-year adjusted EBITDA increased to $414.2 million, with adjusted EBITDA margin improving 50 basis points to 8.8%.
Mix and demand trends by product and geography
Elema said maintenance demand remained steady, and the quarter benefited from ice melt sales due to increased snow events compared with the prior year. He noted, however, that snow events typically have a negative effect on overall organic growth.
By product line, organic daily sales for agronomic products (including fertilizer, controls, ice melt, and equipment) increased 11% in the fourth quarter and 7% for the year, driven by volume growth. Organic daily sales for landscaping products (including irrigation, nursery, hardscapes, outdoor lighting, and accessories) decreased 1% in both the quarter and the year due to softer demand in new residential construction and repair-and-upgrade end markets.
Geographically, management said seven of nine regions delivered positive organic daily sales growth in the fourth quarter, with strong Midwest performance tied to agronomic demand. The company cited continued pressure in markets such as Texas and California, which management said were affected by softness in new construction demand.
Pricing dynamics were mixed. Elema said commodity products such as grass seed and PVC pipe were down 12% and 10%, respectively, in the fourth quarter, but described them as “becoming less of a headwind” as broader pricing turned positive across most categories. In the Q&A, management said grass seed deflation was expected to remain in the 10% to 15% range in the first half of 2026, while PVC pricing was described as “flatish.”
Cost actions, initiatives, and private label progress
Black said the company took “strong cost reduction actions” in 2025, including 20 branch consolidations and closures during the fourth quarter. In response to analyst questions, management said it typically retains 75% to 80% of sales following closures and indicated this assumption is embedded in 2026 guidance.
Management also highlighted operational initiatives aimed at improving productivity and margins. Black said the company reduced net delivery expense by over 40 basis points on delivered sales (about one-third of total sales) in 2025 and expects further progress in 2026 and over the next two to three years. The company also reported more than a 200 basis point improvement in adjusted EBITDA margin for “focus branches” (underperforming locations) in 2025 and said it expects a similar contribution in 2026.
Private label was another emphasis. Black said private label mix increased by over 100 basis points in 2025 to 14% to 15% of total sales. In the Q&A, management said a long-term private label mix of 25% to 30% “would be very doable,” with a goal of adding about 100 basis points per year. Management cited private label brands across categories, including LESCO, Pro-Trade, Solstice Stone, and Portfolio.
Digital initiatives were also highlighted. Black said digital sales increased by more than 120% in 2025 and the company added thousands of new regular users. In the Q&A, management said it expects digital to reach double-digit penetration of total sales in 2026 and noted regular users of SiteOne.com were up about 60%, with “about 10,000” regular users in 2025.
Acquisitions and capital allocation
EVP of Strategy and Development Scott Salmon said SiteOne completed eight acquisitions in 2025 with approximately $55 million in combined trailing 12-month net sales, including three deals in the fourth quarter. He also said the company completed its first acquisition of 2026.
- Red’s Home & Garden (Oct. 1): nursery and hardscape distributor in Wilkesboro, North Carolina
- C&C Landscaping Warehouse (Nov. 13): nursery, bulk materials, and landscape supplies distributor in Bradenton, Florida
- French Broad Stone Yards (Nov. 20): two-location hardscapes distributor in Arden and Brevard, North Carolina
- Bourget Flagstone Co. (Jan. 13, 2026): hardscapes distributor in Santa Monica, California
Since 2014, the company said it has completed 107 acquisitions, adding about $2.1 billion in trailing 12-month net sales. Management described the acquisition pipeline as “robust” and said 2026 is expected to be more typical in terms of average deal size.
On capital allocation, Elema reported net debt of $330 million at year-end 2025, with leverage of 0.8x trailing 12-month adjusted EBITDA and liquidity of $768 million. The company repurchased 817,000 shares for $97.7 million in 2025, including $40 million in the fourth quarter.
2026 outlook and key headwinds
Looking to 2026, Black cited uncertainty tied to interest rates, consumer confidence, and the overall economy. Management expects end-market demand to be flat, with growth in maintenance offset by a decline in new residential construction. Specifically, the company expects:
- New residential construction (20% of sales) to be down in 2026
- New commercial construction (14% of sales) to be flat
- Repair and upgrade (30% of sales) to be flat, with uncertainty
- Maintenance (36% of sales) to continue steady growth
Against that backdrop, management said it expects low single-digit organic daily sales growth in 2026, supported by positive pricing and sales volume gains. The company also expects gross margin to be higher than 2025 and anticipates operating leverage, resulting in adjusted EBITDA margin improvement.
Management highlighted two notable items affecting 2026 comparability. First, fiscal 2026 includes a 53rd week (256 selling days versus 252), but executives said the additional selling days fall in late December when landscaping activity is minimal and the period is “traditionally loss-making.” The company expects this to create a $4 million to $5 million adjusted EBITDA headwind and said the extra week equates to about a 100-basis-point negative drag on full-year organic growth. Second, Black said the fifth distribution center and an expansion of another DC will be dilutive in the near term, citing a $2 million headwind in the fourth quarter and an expected $8 million headwind in 2026 tied to ramp-up and network changes.
Including the impact of the 53rd week and excluding any contribution from unannounced acquisitions, SiteOne guided to fiscal 2026 adjusted EBITDA of $425 million to $455 million.
About SiteOne Landscape Supply (NYSE:SITE)
SiteOne Landscape Supply is a leading distributor of landscape supplies and irrigation equipment in North America. The company serves a broad range of customers, including independent landscapers, lawn and garden retailers, municipalities and other commercial landscape professionals. Its product portfolio spans irrigation and lighting controls, pipes and fittings, fertilizers and soils, lighting fixtures, hardscapes, outdoor lighting systems and related installation accessories.
In addition to core product lines, SiteOne offers agronomic services designed to optimize turf and plant health, as well as online tools and training resources to help customers plan, specify and manage projects more efficiently.
