SiteOne Landscape Supply, Inc. (SITE): Results of Operations and Financial Condition
SiteOne Landscape Supply, Inc. (SITE) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 July 29, 2026 SiteOne Landscape Supply Announces Second Quarter 2026 Earnings Second Quarter 2026 Highlights (Compared to Second Quarter 2025): · Net sales increased 5% to $1,530.7 million · Organic Daily Sales increased 1% · Gross profit increased 6% to $564.5 milli
How this was made
The 30-second read
Why it matters
Traders can update expectations for 2026 profitability given the explicit Adjusted EBITDA range, while monitoring whether organic daily sales growth (flat to up 1%) and gross margin expansion assumptions hold.
Market read
Fresh quarterly performance plus explicit 2026 Adjusted EBITDA guidance and margin drivers create a near-term repricing opportunity for SITE around earnings expectations.
What to watch
Investors may discount the EBITDA range for the extra fiscal week impact and watch for freight/commodity deflation reversal that could pressure gross margin.
SiteOne Landscape Supply Announces Second Quarter 2026 Earnings
Net sales increased 5%, gross margin expanded 50 basis points to 36.9%, net income attributable to SiteOne increased 8%, and Adjusted EBITDA increased 5%, despite softer end markets and only 1% Organic Daily Sales growth.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $1,530.7 million | – | increased 5% |
| Organic Daily Salesother | increased 1% | – | increased 1% |
| Acquisitions contribution to Net sales growthother | $49.2 million | – | 3% |
| Gross profitGAAP | $564.5 million | – | increased 6% |
| Gross marginGAAP | 36.9% | – | improved 50 basis points |
| Selling, general and administrative expensesGAAP | $370.7 million | – | – |
| SG&A as a percentage of Net salesGAAP | 24.2% | – | increased 30 basis points |
| Net income attributable to SiteOneGAAP | $139.3 million | – | increased 8% |
| Adjusted EBITDAnon-GAAP | $237.2 million | – | increased 5% |
| Adjusted EBITDA marginnon-GAAP | 15.5% | – | flat |
| Cash provided by operating activitiesGAAP | $153.2 million | – | increased $16.5 million |
| Net debtother | $555.6 million | – | – |
| Net debt to Adjusted EBITDA for the last twelve monthsnon-GAAP | 1.3 times | – | unchanged |
| Cash and cash equivalentsGAAP | $87.4 million | – | – |
| Available capacity under the ABL Facilityother | $443.0 million | – | – |
| Priceother | up 3% | – | up 3% |
fiscal year 2026 outlook
- RevenueOrganic Daily Sales growth to be flat to up 1%
- Gross marginexpand our Gross margin
- Operating expensesSG&A as a percentage of Net sales to be approximately flat
- NoteAdjusted EBITDA to be in the range of $425 million to $455 million
- NoteAdjusted EBITDA margin to continue expanding in 2026
- NoteThe extra week is expected to reduce Adjusted EBITDA for the year by approximately $4 million to $5 million
- NoteGuidance does not include any contributions from unannounced acquisitions
Capital returns
- Repurchased $93.8 million of shares under the share repurchase authorization
- Repurchased additional $10.0 million of shares under the share repurchase authorization post quarter
What drove it
- Organic Daily Sales growth was driven primarily by price inflation in response to rising costs and commercial initiatives.
- Acquisitions contributed $49.2 million, or 3%, to Net sales growth.
- Gross margin expansion was driven primarily by higher price realization and continued benefits from commercial initiatives.
- The Company acquired the remaining 25% interest in Devil Mountain Wholesale Nursery.
Concerns
- Softer demand in the new residential construction and repair and upgrade end markets partially offset Organic Daily Sales growth.
- Higher freight and distribution costs and deflation in certain commodity products partially offset gross-margin improvement.
- SG&A as a percentage of Net sales increased 30 basis points due primarily to modest Organic Daily Sales growth and higher fuel cost.
- The Company estimates new residential construction is down high-single digits and repair and upgrade is down mid-single digits.
- The 53rd week is expected to reduce Adjusted EBITDA for the year by approximately $4 million to $5 million.
What to watch
- Whether price inflation and commercial initiatives sustain Organic Daily Sales growth of flat to up 1% for fiscal year 2026.
- Execution against the expectation to expand Gross margin and continue expanding Adjusted EBITDA margin in 2026.
- Whether operational initiatives offset lower sales volume and the negative effect of the extra week in December.
- The contribution from acquisitions, while fiscal-year guidance excludes contributions from unannounced acquisitions.
Balance sheet and cash flow
- Cash provided by operating activities increased $16.5 million to $153.2 million
- Net debt was $555.6 million compared to $531.6 million as of June 29, 2025
- Cash and cash equivalents were $87.4 million as of June 28, 2026
- Available capacity under the ABL Facility was $443.0 million as of June 28, 2026
- Amended ABL Facility and extended maturity to April 2031
- Net debt to Adjusted EBITDA for the last twelve months was 1.3 times, unchanged compared to the prior year period
Analysis
SiteOne reported a solid second quarter, with Net sales increasing 5% to $1,530.7 million and Adjusted EBITDA increasing 5% to $237.2 million. The reported sales growth was supported by $49.2 million of acquisition contribution, while Organic Daily Sales increased 1%. Management attributed organic growth primarily to price inflation and commercial initiatives, with softer new residential construction and repair and upgrade demand partly offsetting those gains.
Profitability improved at the gross-profit line. Gross profit increased 6% to $564.5 million and gross margin improved 50 basis points to 36.9%, reflecting higher price realization and commercial initiatives. These benefits overcame higher freight and distribution costs and deflation in certain commodity products. SG&A rose to $370.7 million from $349.1 million, and SG&A as a percentage of Net sales increased 30 basis points to 24.2%, which management attributed to modest Organic Daily Sales growth and higher fuel costs.
Net income attributable to SiteOne increased 8% to $139.3 million. Adjusted EBITDA margin was 15.5%, flat with the prior-year period, indicating that gross-margin expansion was absorbed by SG&A deleverage. Cash provided by operating activities increased $16.5 million to $153.2 million. The Company reported net debt of $555.6 million, cash and cash equivalents of $87.4 million, and available ABL capacity of $443.0 million. It also amended its ABL Facility and extended maturity to April 2031.
Capital allocation included $93.8 million of share repurchases during the quarter and an additional $10.0 million post quarter, alongside the acquisition of the remaining 25% interest in Devil Mountain Wholesale Nursery. Management described acquisitions, led by Reinders, as continuing to perform well. Net debt to Adjusted EBITDA for the last twelve months was 1.3 times and unchanged from the prior-year period.
For fiscal year 2026, management continues to expect Organic Daily Sales growth to be flat to up 1%, gross-margin expansion, approximately flat SG&A as a percentage of Net sales, and continuing Adjusted EBITDA-margin expansion. Adjusted EBITDA guidance remains $425 million to $455 million, including an expected approximately $4 million to $5 million negative effect from the 53rd week. The outlook reflects management's expectation that challenging end-market trends, including high-single-digit declines in new residential construction and mid-single-digit declines in repair and upgrade, continue through the full year.
Management, verbatim
We delivered a solid second quarter performance with 5% growth in Net sales and Adjusted EBITDA despite softer end markets.
Doug Black, Chairman and CEO of SiteOne
While market conditions remain challenging, we are confident in our 2026 outlook and our ability to continue executing our strategy to drive sustainable long-term performance and growth.
Doug Black, Chairman and CEO of SiteOne
Given the ongoing macroeconomic uncertainty, we expect these trends to continue through the full year.
Doug Black, Chairman and CEO of SiteOne
Not in the filing
stated, not guessed- GAAP operating income
- GAAP diluted EPS
- non-GAAP adjusted diluted EPS
- Free cash flow
- Prior-year cash provided by operating activities on its own reported line
- Long-term debt amount
- Finance lease amount
- Prior-year cash and cash equivalents
- Prior-year available ABL capacity
- Segment revenue and segment profitability
- Numerical fiscal-year 2026 gross-margin guidance
- Fiscal-year 2026 tax-rate guidance
- Dividend information
- Previous-release outlook for comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is an SEC 8-K with Exhibit 99.1 covering SiteOne’s Q2 2026 results and full-year outlook, including an ABL facility extension and share repurchases.
Ticker impact
SiteOne reported Q2 2026 net sales up 5% to $1,530.7M and raised/maintained 2026 Adjusted EBITDA guidance range of $425M to $455M.
Moderate positive bias for the next session, with follow-through risk if investors focus on end-market weakness versus pricing and commercial initiatives.
The filing includes concrete quarterly datapoints (sales, gross margin, EBITDA) plus explicit 2026 Adjusted EBITDA range and qualitative outlook tied to pricing and commercial initiatives.
Market effects
Wholesale landscape supply distributors may see read-across on how pricing and commercial initiatives are stabilizing margins amid residential weakness.
Limited direct regional spillover; demand commentary is US residential and commercial mix focused.
Low, as the story is primarily US end-market and company-specific financial performance.
Counterpoint
The guidance still depends on continued pricing strength and margin expansion, while end markets are described as challenging through full year.
Key entities
- public_companySiteOne Landscape Supply, Inc.
NYSE-listed wholesale distributor of landscape supplies; reported Q2 2026 results and provided 2026 Adjusted EBITDA guidance.
- financingABL Facility
Amended asset-based lending facility extended maturity to April 2031, supporting liquidity.
