SiteOne Landscape Supply Q2 Earnings Call Highlights

SiteOne Landscape Supply Q2 Earnings Call Highlights

SiteOne Landscape Supply NYSE: SITE reported second-quarter 2026 net sales growth of 5% and adjusted EBITDA growth of 5%, as pricing, acquisitions and commercial initiatives helped offset softer demand in key end markets. Net sales rose to approximately $1.53 billion from $1.46 billion a year earlier. Organic daily sales increased 1%, reflecting a 3% pricing contribution that more than offset a roughly 2% decline in organic volume. Acquisitions completed in 2025 and 2026 added about $49 million, or 3%, to quarterly sales growth.

Net income attributable to SiteOne increased 8% to $139.3 million, while adjusted EBITDA rose to $237.2 million from $226.7 million. Adjusted EBITDA margin was unchanged at 15.5%.

Chairman and CEO Doug Black said the company delivered solid results despite difficult market conditions, citing weakness in new residential construction and repair and upgrade activity. SiteOne expects new residential landscaping demand, which represents 20% of sales, to decline by high single digits for the full year. Repair and upgrade demand, representing 30% of sales, is expected to fall by mid-single digits.

Black said new residential construction was particularly weak in Sun Belt markets including California, Arizona and Texas, while conditions were stronger in the Midwest. He also described repair and upgrade weakness as broad-based, with hardscapes and lighting serving as indicators of softer remodeling activity. “We believe that the ongoing energy volatility, higher interest rates, weak consumer confidence, and increased macroeconomic uncertainty are collectively having a negative effect” on new residential construction and repair and upgrade markets, Black said.

Maintenance demand, which accounts for 36% of sales, has remained relatively steady, though the company said higher fertilizer prices temporarily reduced volumes among customers operating under fixed budgets. New commercial construction, representing 14% of sales, is expected to remain flat in 2026, according to management.

Gross profit increased 6% to approximately $565 million, and gross margin expanded 50 basis points to 36.9%. The company attributed the improvement to price realization, growth in private-brand products and sales gains among small customers. Pro-Trade private-brand sales increased nearly 50% year over year during the quarter. Black said sales of the company’s Pro-Trade, Solstice and Portfolio private brands collectively grew 40%. SiteOne also reported that digital sales through siteone.com rose more than 50% year to date, while regular active users increased about 40%. Organic daily sales of agronomic products increased 5%, supported by 4% pricing and 1% volume growth. Landscaping product sales were flat organically, with 3% pricing offset by weaker demand in residential construction and repair and upgrade categories. Pricing was positive across most categories, though grass seed and PVC pipe prices declined 9% and 4%, respectively, during the quarter. Chief Financial Officer Eric Elema said grass seed price increases took effect in July and are expected to provide a low- to mid-single-digit pricing benefit in the second half. PVC price increases implemented in the second quarter are also expected to contribute in the back half.

Selling, general and administrative expenses rose to approximately $371 million. SG&A as a percentage of sales increased 30 basis points to 24.2%, driven by modest organic growth, healthcare costs and fuel inflation. Acquisitions accounted for about half of the year-over-year increase in SG&A, Elema said.