Key Highlights

  • Consensus EPS of 1.46 compares with reported second-quarter diluted EPS of 3.14, against 2.86 a year earlier.
  • Consensus revenue of USD 1.30 billion compares with second-quarter net sales of USD 1,530.7 million, up 5% year over year.
  • Management guided full-year adjusted EBITDA of USD 425 million to USD 455 million, including a 53rd-week effect.
  • Organic daily sales rose 1%, made up of 3% price inflation and a 2% decline in organic volume.

SiteOne Landscape Supply (NYSE:SITE) reports third-quarter results on Wednesday, Oct. 28, before the market opens. Consensus stands at EPS of 1.46 on revenue of USD 1.30 billion, and the company has a market capitalization of USD 4.43 billion.

SiteOne Landscape Supply distributes landscape supplies, including agronomic products, landscape products and hardscapes. Second-quarter net sales were USD 1,530.7 million against USD 1,461.6 million, and gross profit was USD 564.5 million against USD 531.4 million.

Estimates Against the Last Reported Quarter and Full-Year Guidance

The EPS estimate of 1.46 is below the diluted EPS of 3.14 reported for the second quarter, which compared with 2.86 a year earlier, and the estimates table does not state its EPS basis. The revenue estimate of USD 1.30 billion is below the USD 1,530.7 million reported.

Management said the third quarter is its largest grass seed selling quarter, with about 40% of grass seed sales, and that PVC price increases made in the second quarter begin to benefit the second half. Quarterly guidance was not given on the call.

What Management Guided and What It Left Open

Management guided full-year adjusted EBITDA of USD 425 million to USD 455 million, including a negative USD 4 million to USD 5 million from an extra 53rd week. It put new residential construction down high single digits for 2026, repair and upgrade down mid-single digits and maintenance growing modestly, and it targets flat SG&A as a percentage of net sales.

Management said a high degree of uncertainty remains for the rest of the year given Middle East disruption and commodity volatility, and that pricing may not accelerate meaningfully in the second half. A volume outlook of flat to up 1% was discussed on the call.

Second-Quarter Results

Gross margin was 36.9%, 50 basis points higher, and adjusted EBITDA was USD 237.2 million, up 5%, with a margin of 15.5%. Operating income was USD 197.6 million against USD 187.4 million, and net income was USD 139.3 million, up 8%.

Acquisitions contributed USD 49.2 million, adding 3% to net sales growth. SG&A was USD 370.7 million, or 24.2% of net sales, which management tied to higher fuel and health care costs. Agronomics organic daily sales rose 5%, while landscape products were flat.

For the six months, net sales were USD 2,470.8 million against USD 2,401.0 million, and gross profit was USD 883.3 million against USD 841.2 million.

Capital Allocation, Liquidity and Commodity Pricing

The company repurchased 797,000 shares for USD 94 million in the second quarter and a further USD 10 million in July. Net debt to adjusted EBITDA was 1.3x, within a target range of 1x to 2x, and available liquidity was USD 530 million, including USD 87 million of cash.

Inventory was USD 1.09 billion against USD 876.5 million at the end of fiscal 2025. Grass seed prices declined 9% and PVC pipe prices declined 4% in the quarter. The estimates table lists a market capitalization of USD 4.43 billion.

Markers for the Release

Diluted EPS against 1.46 and net sales against USD 1.30 billion are the headline comparisons. Other markers are organic volume against the 2% decline, gross margin and the full-year adjusted EBITDA range.