SiteOne Landscape Supply, Inc. has announced its third quarter 2025 earnings, revealing a number of positive developments compared to the same period in 2024. The company's net sales increased by 4% to $1,258.2 million, with organic daily sales showing a 3% increase. Gross profit also saw a 6% increase to $437.2 million, accompanied by a 70 basis point improvement in gross margin to 34.7%. Additionally, SG&A as a percentage of net sales decreased by 50 basis points to 28.4%.
Net income attributable to SiteOne surged by 33% to $59.1 million, while adjusted EBITDA climbed 11% to $127.5 million, with the adjusted EBITDA margin also improving by 60 basis points to 10.1%. The company's cash provided by operating activities increased by $12.7 million to $128.6 million.
In terms of acquisitions, SiteOne closed the acquisitions of Grove Nursery, Nashville Nursery and Landscape Supply, and Autumn Ridge Stone & Landscape Supply during the quarter, and subsequently completed the acquisition of Red’s Home & Garden post-quarter.
Looking ahead, the company expects demand in new residential construction and repair and upgrade to remain soft, though some stabilization is being observed in the latter. The maintenance end market is anticipated to continue growing modestly, with new commercial construction demand expected to be flat. Despite these market conditions, SiteOne remains confident in its ability to achieve above-market organic growth and strong operating leverage.
The company's net debt decreased to $422.5 million compared to $449.3 million in the same period last year, with net debt to adjusted EBITDA for the last twelve months standing at 1.0 times, down from 1.2 times in the prior year period. As of September 28, 2025, cash and cash equivalents were at $106.9 million, with available capacity under the ABL facility at $577.8 million.
To address potential continued soft market conditions and optimize its footprint and cost structure, SiteOne plans to consolidate or close additional branches in the fourth quarter, incurring a corresponding charge to adjusted EBITDA of approximately $4 million to $6 million. Despite these challenges, the company now expects its full year adjusted EBITDA to be in the range of $405 million to $415 million.
All in all, SiteOne Landscape Supply, Inc. has reported a strong quarter with notable increases in key financial metrics and strategic acquisitions, despite the prevailing market challenges. Following these announcements, the company's shares moved -0.94%, and are now trading at a price of $123.24. For more information, read the company's full 8-K submission here.
