SiteOne Landscape Supply, Inc. (SITE) - 10-K Summary
Business Context and Reporting Period
Company: SiteOne Landscape Supply, Inc.
Filing Type: Form 10-K (Annual Report)
Reporting Period: Fiscal Year ended December 28, 2025 (52 weeks)
Business Overview: SiteOne is the largest and only national full product line wholesale distributor of landscape supplies in the United States, with an established presence in Canada. As of December 28, 2025, the company operated over 670 branch locations across 45 U.S. states and five Canadian provinces. The company serves residential and commercial landscape professionals with approximately 180,000 SKUs, including hardscapes, irrigation supplies, nursery goods, and agronomic products.
Key Financial Metrics
| Metric (in millions) | Fiscal 2025 | Fiscal 2024 |
|---|---|---|
| Net Sales | $4,704.8 | $4,540.6 |
| Gross Profit | $1,635.2 | $1,560.1 |
| Gross Margin | 34.8% | 34.4% |
| Operating Income | $238.1 | $192.3 |
| Net Income Attributable to SiteOne | $151.8 | $123.6 |
| Diluted EPS | $3.37 | $2.71 |
| Adjusted EBITDA | $414.2 | $378.2 |
| Operating Cash Flow | $300.5 | $283.4 |
| Total Long-Term Debt | $389.4 | $393.3 |
| Cash and Cash Equivalents | $190.6 | $107.1 |
Material Changes vs. Prior Period
- Revenue Growth: Net sales increased 4% year-over-year, driven primarily by acquisitions ($110.7 million contribution) and steady growth in the maintenance end market. Organic Daily Sales increased 1%.
- Profitability: Net income attributable to SiteOne rose 23% to $151.8 million. This was driven by sales growth, a 40 basis point increase in gross margin (to 34.8%), and improved operating leverage which reduced SG&A as a percentage of sales to 30.1%.
- Pricing Environment: The negative pricing trend experienced in 2024 improved significantly; pricing impact on 2025 Organic Daily Sales was negligible compared to a 3% decline in 2024.
- Acquisitions: The company invested $38.5 million in 15 acquisitions during the fiscal year, including French Broad Stone Yards, CC Landscaping, and Red's Home and Garden.
- Impairments: The company recorded impairment and related charges of approximately $5.6 million in Q4 2025 due to the consolidation or closure of certain branch locations.
Guidance, Outlook, and Risks
Management Commentary & Outlook: Management anticipates continued pressure on Net sales growth and Net income in the foreseeable future due to economic uncertainty, elevated interest rates, and softer demand in new residential construction. However, the company expects pricing to contribute 1% to 3% to Organic Sales growth in Fiscal 2026. The long-term outlook remains strong, driven by population trends and the "outdoor living" trend. Capital expenditures for 2026 are expected to range from 0.8% to 1.3% of Net sales.
Key Risks & Contingencies:
- Economic Sensitivity: Significant exposure to cyclicality in residential and commercial construction markets, which are sensitive to interest rates and consumer confidence.
- Weather & Climate: Operations are highly dependent on weather conditions; severe weather (e.g., Hurricanes Helene and Milton in 2024) can negatively impact demand and inventory.
- Supply Chain & Costs: Volatility in product prices (e.g., grass seed, PVC pipe) and operating costs (fuel, labor) poses risks to margins. Tariffs and trade policies remain a source of uncertainty.
- Debt & Interest Rates: The company has $389.4 million in long-term debt, primarily variable-rate term loans. A 1% increase in interest rates would increase projected interest payments by approximately $3.9 million for Fiscal 2026.
- Regulatory: Subject to extensive environmental, health, and safety regulations, including potential changes under the "One Big Beautiful Bill Act" regarding tax provisions.
Investor Verification Checklist
- Organic Growth Sustainability: Verify if the 1% Organic Daily Sales growth can be sustained given the headwinds in new residential construction.
- Margin Expansion: Monitor the ability to maintain the 34.8% gross margin amidst potential commodity price volatility and freight cost increases.
- Debt Service Coverage: Assess the impact of rising interest rates on the $389.4 million variable-rate debt load and the company's ability to service debt while funding acquisitions and share repurchases.
- Acquisition Integration: Review the integration progress of the 15 acquisitions made in 2025 and their contribution to future earnings.
- Share Repurchase Program: Note that $214.3 million remains available under the $400 million share repurchase authorization; monitor the pace of buybacks relative to cash flow generation.