SiteOne Landscape Supply, Inc. - 10-Q Filing Summary
Business Context and Reporting Period
Company: SiteOne Landscape Supply, Inc. (NYSE: SITE)
Filing Type: Form 10-Q (Quarterly Report)
Reporting Period: Three months ended March 29, 2026 (Q1 2026)
Business Overview: The Company is the largest national full product line wholesale distributor of landscape supplies in the United States, serving residential and commercial landscape professionals. As of March 29, 2026, the Company operated over 680 branches across 45 U.S. states and five Canadian provinces.
Key Financial Metrics
| Metric (in millions, except per share) | Q1 2026 | Q1 2025 |
|---|---|---|
| Net Sales | $940.1 | $939.4 |
| Gross Profit | $318.8 | $309.8 |
| Gross Margin | 33.9% | 33.0% |
| Operating Loss | $(25.9) | $(29.5) |
| Net Loss Attributable to SiteOne | $(26.6) | $(27.3) |
| Net Loss Per Share (Diluted) | $(0.60) | $(0.61) |
| Adjusted EBITDA | $25.5 | $22.4 |
| Cash and Cash Equivalents | $84.0 | $56.6 |
| Total Debt (Gross) | $539.5 | $389.4 |
| ABL Facility Availability | $418.1 | $577.8 |
Material Changes vs. Prior Period
- Revenue: Net sales increased slightly by $0.7 million (0.1%) to $940.1 million. Organic Daily Sales decreased 1% due to unfavorable weather and soft demand in new residential construction, partially offset by a 3% positive pricing impact.
- Profitability: Gross margin expanded 90 basis points to 33.9%, driven by price realization and commercial initiatives. Operating loss narrowed to $25.9 million from $29.5 million.
- Expenses: Selling, general, and administrative (SG&A) expenses increased 2% to $349.9 million, primarily due to higher operating costs from recent acquisitions. Interest expense increased to $8.0 million following the maturity of interest rate swaps in March 2025.
- Balance Sheet: Total debt increased by $150.1 million to $539.5 million, driven by seasonal working capital needs and acquisition funding. Inventory increased significantly to $1,107.9 million from $876.5 million.
- Cash Flow: Net cash used in operating activities was $122.1 million, an improvement from $129.6 million in the prior year. Investing activities used $101.6 million, largely due to $75.9 million in acquisition costs.
Guidance, Outlook, and Risks
- Outlook: Management anticipates sustained pressure on Net sales growth and Net income due to economic uncertainty, geopolitical conflicts, and elevated interest rates. However, they project overall price increases of 2% to 3% for the 2026 Fiscal Year.
- Strategic Initiatives: The Company continues to pursue growth through acquisitions (completed $78.1 million in acquisitions in Q1 2026) and organic initiatives, including supply chain optimization and digital platform enhancements.
- Share Repurchases: The Company repurchased 155,130 shares for $20.0 million in Q1 2026. Approximately $193.5 million remains available under the $400 million authorization.
- Risks: Key risks include cyclicality in construction markets, supply chain disruptions, inflationary pressures, volatile commodity prices, and the impact of geopolitical conflicts on energy costs and consumer confidence.
- Subsequent Event: On April 22, 2026, the Company amended its ABL Facility to extend the maturity date to April 22, 2031, and increase the letter of credit sublimit to $50.0 million.
Investor Verification Checklist
- Seasonality Impact: Verify the extent to which Q1 results are impacted by seasonal weakness compared to the historically stronger Q2 and Q3.
- Acquisition Integration: Assess the integration progress and cost synergies of the $78.1 million in acquisitions completed in Q1 2026, particularly Reinders, Inc.
- Working Capital Management: Monitor the $231.4 million increase in inventory and the corresponding increase in debt to ensure efficient capital deployment.
- Interest Rate Exposure: Evaluate the impact of rising interest rates on variable-rate debt following the termination of interest rate swaps in March 2025.
- Organic Growth Trends: Track the 1% decline in Organic Daily Sales to determine if pricing power can offset volume headwinds in the residential construction sector.