SiteOne Landscape beats Q3 sales estimates, plans to close additional branches in Q4

Reuters
Yesterday
SiteOne Landscape beats Q3 sales estimates, plans to close additional branches in Q4

Overview

  • SiteOne Q3 net sales rise 4% to $1.258 bln, beating analyst expectations

  • Adjusted EBITDA for Q3 increases 11%, surpassing analyst estimates

  • Net income for Q3 grows 33% to $59.1 mln, driven by sales growth and margin improvement

Outlook

  • SiteOne expects full-year 2025 Adjusted EBITDA of $405 mln to $415 mln

  • Company anticipates 1% to 2% pricing increase in Q4 2025

  • SiteOne plans branch consolidations in Q4, with a $4 mln to $6 mln EBITDA charge

Result Drivers

  • ORGANIC SALES GROWTH - SiteOne achieved 3% growth in Organic Daily Sales due to sales initiatives and improved pricing

  • GROSS MARGIN IMPROVEMENT - Gross margin increased by 70 basis points to 34.7% due to improved price realization and commercial initiatives

  • ACQUISITIONS CONTRIBUTION - Acquisitions added $12.5 mln to net sales, contributing 1% to growth

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Beat

$1.25 bln

$1.25 bln (11 Analysts)

Q3 Net Income

$59.10 mln

Q3 Adjusted EBITDA

Beat

$127.50 mln

$123.40 mln (10 Analysts)

Q3 Gross Margin

34.70%

Q3 Adjusted EBITDA Margin

10.10%

Q3 Gross Profit

$437.20 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the diversified industrial goods wholesale peer group is "buy."

  • Wall Street's median 12-month price target for SiteOne Landscape Supply Inc is $151.50, about 18.7% above its October 28 closing price of $123.24

  • The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 32 three months ago

Press Release: ID:nBwb7GdCPa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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