SiteOne Sales Surge, Net Income Jumps 33% in Q3

Ticker: SITE · Form: 10-Q · Filed: Oct 29, 2025 · CIK: 1650729

Sentiment: bullish

Topics: Landscape Supply, Wholesale Distribution, Q3 Earnings, Share Repurchase, Construction Market, Green Industry, Financial Performance

Related Tickers: SITE

TL;DR

**SiteOne is crushing it with strong sales and profit growth, making it a solid buy in the landscape supply sector.**

AI Summary

SiteOne Landscape Supply, Inc. (SITE) reported robust financial performance for the three and nine months ended September 28, 2025. Net sales increased by 4.1% to $1,258.2 million for the three months ended September 28, 2025, up from $1,208.8 million in the prior year period. For the nine months, net sales grew 3.7% to $3,659.2 million from $3,527.5 million. Net income attributable to SiteOne saw a significant jump of 33.1% to $59.1 million for the three-month period, compared to $44.4 million in the same period last year, and increased by 10.7% to $160.8 million for the nine-month period. Basic net income per common share rose to $1.32 from $0.98 for the quarter and to $3.58 from $3.21 for the nine months. The company's total assets increased to $3,267.4 million as of September 28, 2025, from $3,070.8 million at December 29, 2024. Key changes include a substantial increase in inventory to $962.6 million from $827.2 million and accounts receivable to $606.0 million from $547.1 million. The company also repurchased 494,609 shares of common stock for an average price of $116.71 per share during the nine months ended September 28, 2025, with $254.3 million remaining under the $400.0 million authorization.

Why It Matters

SiteOne's strong performance, particularly the 33.1% increase in net income for the quarter, signals robust demand in the green industry, benefiting investors through higher earnings per share. The company's continued share repurchase program, with $254.3 million remaining, demonstrates a commitment to returning capital to shareholders, potentially boosting stock value. For employees, sustained growth and strategic acquisitions could mean job stability and expansion opportunities. In a competitive landscape, SiteOne's ability to increase sales and manage costs effectively, despite rising inventory, positions it favorably against rivals by maintaining market share and operational efficiency.

Risk Assessment

Risk Level: medium — While SiteOne shows strong financial performance, the filing highlights significant risks including 'cyclicality in residential and commercial construction markets' and 'market variables, including inflation and elevated interest rates for prolonged periods.' The substantial increase in inventory to $962.6 million from $827.2 million also presents an inventory management risk if demand softens, potentially leading to write-downs or increased carrying costs.

Analyst Insight

Investors should consider SiteOne's consistent growth and share repurchase program as positive indicators. However, closely monitor macroeconomic factors like interest rates and construction market trends, as these could impact future performance and inventory valuation. A 'buy' rating is warranted for long-term investors given the strong Q3 results.

Financial Highlights

debt To Equity
0.91
revenue
$3,659.2M
operating Margin
6.65%
total Assets
$3,267.4M
total Debt
$388.4M
net Income
$160.8M
eps
$3.58
gross Margin
34.93%
cash Position
$106.9M
revenue Growth
+3.7%

Revenue Breakdown

SegmentRevenueGrowth
Net Sales$1,258.2M+4.1%

Key Numbers

Key Players & Entities

FAQ

What were SiteOne Landscape Supply's net sales for the third quarter of 2025?

SiteOne Landscape Supply reported net sales of $1,258.2 million for the three months ended September 28, 2025, an increase from $1,208.8 million in the same period last year.

How much did SiteOne's net income attributable to SiteOne increase in Q3 2025?

Net income attributable to SiteOne increased by 33.1% to $59.1 million for the three months ended September 28, 2025, up from $44.4 million in the prior year period.

What is SiteOne's basic net income per common share for the nine months ended September 28, 2025?

For the nine months ended September 28, 2025, SiteOne's basic net income per common share was $3.58, an increase from $3.21 in the comparable period of 2024.

What is the current status of SiteOne's share repurchase program?

As of September 28, 2025, SiteOne had $254.3 million remaining under its $400.0 million share repurchase authorization. The company repurchased 494,609 shares at an average price of $116.71 per share during the nine months.

What are the primary risks identified in SiteOne's 10-Q filing?

Key risks include cyclicality in residential and commercial construction markets, general business and economic conditions, severe weather, and market variables such as inflation and elevated interest rates for prolonged periods.

How has SiteOne's inventory changed as of September 28, 2025?

SiteOne's inventory, net, increased to $962.6 million as of September 28, 2025, compared to $827.2 million at December 29, 2024.

Where does SiteOne Landscape Supply primarily conduct its business?

Substantially all of SiteOne Landscape Supply's sales are to customers located in the United States of America, with less than three percent of sales and total assets in Canada.

What types of products does SiteOne Landscape Supply distribute?

SiteOne distributes irrigation supplies, hardscapes (including pavers, natural stone, and blocks), fertilizer and control products, landscape accessories, nursery goods, outdoor lighting, and ice melt products.

What was SiteOne's total assets as of September 28, 2025?

SiteOne's total assets amounted to $3,267.4 million as of September 28, 2025, an increase from $3,070.8 million at December 29, 2024.

How many branches did SiteOne Landscape Supply have as of September 28, 2025?

As of September 28, 2025, SiteOne Landscape Supply had over 680 branches across its operational footprint.

Risk Factors

Industry Context

SiteOne Landscape Supply operates as a wholesale distributor in the green industry, serving landscape professionals. The industry is characterized by seasonality, with peak sales in warmer months, and is influenced by consumer spending on outdoor living spaces and property maintenance. Competition comes from other national distributors, regional players, and direct sales from manufacturers.

Regulatory Implications

As a distributor of landscape supplies, including fertilizers and control products, SiteOne is subject to various environmental and product safety regulations. Changes in these regulations, particularly concerning chemical use and disposal, could impact product availability, compliance costs, and operational procedures.

What Investors Should Do

  1. Monitor inventory and accounts receivable levels closely.
  2. Analyze the drivers of net income growth.
  3. Evaluate the impact of share repurchases on cash flow.
  4. Assess the company's ability to manage seasonal fluctuations.

Key Dates

Glossary

Net sales
The total revenue generated from sales of goods and services after deducting returns, allowances, and discounts. (Key indicator of the company's top-line performance and market demand for its products.)
Inventory, net
The value of goods held for sale by the company, adjusted for any potential obsolescence or write-downs. (Significant asset for a wholesale distributor; changes can indicate sales trends or inventory management efficiency.)
Accounts receivable, net
The total amount of money owed to the company by its customers for goods or services delivered, net of any allowance for doubtful accounts. (Reflects the company's credit policies and the collectibility of customer payments.)
Basic net income per common share
The net income attributable to each outstanding share of common stock, calculated using the weighted average number of shares outstanding. (Measures the profitability of the company on a per-share basis, a key metric for investors.)
Goodwill
An intangible asset that arises when a company acquires another company for a price greater than the fair value of its identifiable net assets. (Represents the premium paid for acquired businesses, indicating potential synergies or brand value.)
Operating lease right-of-use assets, net
Assets recognized under lease accounting standards representing the right to use an asset for the lease term. (Reflects the company's significant use of leased properties, such as its branches.)
Redeemable non-controlling interest
Represents the equity interest of minority shareholders in a subsidiary that has redemption features, requiring the company to potentially buy back these shares. (Can represent a future cash outflow or liability for the company.)

Year-Over-Year Comparison

SiteOne Landscape Supply has demonstrated positive year-over-year performance. Net sales for the nine months increased by 3.7% to $3,659.2 million, while net income saw a more substantial rise of 10.7% to $160.8 million, indicating improved profitability. Total assets grew to $3,267.4 million, driven by a significant increase in inventory and accounts receivable, suggesting a build-up in working capital. The company also continued its share repurchase program, reflecting a commitment to shareholder returns.

Filing Stats: 4,718 words · 19 min read · ~16 pages · Grade level 8.4 · Accepted 2025-10-29 06:01:29

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION

Consolidated Financial Statements (Unaudited)

Item 1. Consolidated Financial Statements (Unaudited) Consolidated Balance Sheets 5 Consolidated Statements of Operations 6 Consolidated Statements of Comprehensive Income 7 Consolidated Statements of Equity and Redeemable Non-controlling Interest 8 Consolidated Statements of Cash Flows 10

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 11

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 31

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 49

Controls and Procedures

Item 4. Controls and Procedures 49

OTHER INFORMATION

Part II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 50

Risk Factors

Item 1A. Risk Factors 50

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 50

Other Information

Item 5. Other Information 50

Exhibits

Item 6. Exhibits 51 Signature 52 1 Table of Contents Special Note Regarding Forward-Looking Statements and Information This Quarterly Report on Form 10-Q, other periodic reports filed by us under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and other written or oral statements made from time to time by our management contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Terms such as "may," "intend," "might," "will," "should," "could," "would," "expect," "believe," "estimate," "anticipate," "predict," "project," "potential," or the negative of these terms, and similar expressions often signify forward-looking statements. Forward-looking statements are subject to risks and uncertainties that are beyond our control, and because they also relate to the future, they are likewise subject to inherent uncertainties and other factors that may cause actual results to differ materially from the views, beliefs, and projections expressed in such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. Factors that may cause actual results to differ materially from those expressed or implied by the forward-looking statements include, but are not limited to, the following: cyclicality in residential and commercial construction markets; general business, financial market, and economic conditions, including challenges created, in part, by the imposition of U.S. tariffs and broader geopolitical conflicts, and the resulting economic concerns, market fluctuations and volatility, declines in consumer sentiment and impact on the price of, and demand for, our products; severe weather and climate conditions; seasonality of our bu

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Consolidated Financial Statements (Unaudited)

Item 1. Consolidated Financial Statements (Unaudited) 4 Table of Contents SiteOne Landscape Supply, Inc. Consolidated Balance Sheets (Unaudited) (In millions, except share and per share data) Assets September 28, 2025 December 29, 2024 Current assets: Cash and cash equivalents $ 106.9 $ 107.1 Accounts receivable, net of allowance for doubtful accounts of $ 27.4 and $ 26.9 , respectively 606.0 547.1 Inventory, net 962.6 827.2 Income tax receivable 5.0 12.3 Prepaid expenses and other current assets 89.9 55.9 Total current assets 1,770.4 1,549.6 Property and equipment, net ( Note 5 ) 300.6 292.1 Operating lease right-of-use assets, net ( Note 7 ) 410.3 415.3 Goodwill ( Note 6 ) 522.2 518.1 Intangible assets, net ( Note 6 ) 227.0 261.0 Deferred tax assets 18.4 18.5 Other assets 18.5 16.2 Total assets $ 3,267.4 $ 3,070.8 Liabilities, Redeemable Non-controlling Interest, and Stockholders' Equity Current liabilities: Accounts payable $ 341.7 $ 315.5 Current portion of finance leases ( Note 7 ) 34.2 29.7 Current portion of operating leases ( Note 7 ) 90.3 90.2 Accrued compensation 87.8 70.9 Long-term debt, current portion ( Note 9 ) 3.9 4.3 Accrued liabilities 153.5 130.2 Total current liabilities 711.4 640.8 Other long-term liabilities 4.3 11.0 Finance leases, less current portion ( Note 7 ) 106.8 100.9 Operating leases, less current portion ( Note 7 ) 335.9 342.3 Long-term debt, less current portion ( Note 9 ) 384.5 383.9 Total liabilities 1,542.9 1,478.9 Commitments and contingencies ( Note 11 ) Redeemable non-controlling interest 22.8 19.4 Stockholders' equity: Common stock, par value $ 0.01 ; 1,000,000,000 shares authorized; 45,879,547 and 45,601,760 shares issued, and 44,696,474 and 44,913,296 shares outstanding at September 28, 2025 and December 29, 2024, respectively 0.5 0.5 Additional paid-in capital 652.7 626.5 Retained earnings 1,200.7 1,039.9 Accumulated other comprehensive loss ( 5.9 ) ( 6.1 ) Tre

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Note 1. Nature of Business and Significant Accounting Policies 12 Note 2. Revenue from Contracts with Customers 14 Note 3. Acquisitions 15 Note 4. Fair Value Measurement and Interest Rate Swaps 16 Note 5. Property and Equipment, Net 18 Note 6. Goodwill and Intangible Assets, Net 19 Note 7. Leases 20 Note 8. Employee Benefit and Stock Incentive Plans 22 Note 9. Long-Term Debt 24 Note 10. Income Taxes 27 Note 11. Commitments and Contingencies 28 Note 12. Earnings (Loss) Per Share 29 Note 13. Segment Information 29 Note 14. Subsequent Events 30 11 Table of Contents Note 1. Nature of Business and Significant Accounting Policies Nature of Business SiteOne Landscape Supply, Inc. (hereinafter collectively with all its consolidated subsidiaries referred to as the "Company") is a wholesale distributor of irrigation supplies, hardscapes (including pavers, natural stone, and blocks), fertilizer and control products (e.g., herbicides), landscape accessories, nursery goods, outdoor lighting, and ice melt products to green industry professionals. The Company also provides value-added consultative services to complement its product offering and to help customers operate and grow their businesses. Substantially all of the Company's sales are to customers located in the United States of America ("U.S."), with less than three percent of sales and total assets in Canada for all periods presented. As of September 28, 2025, the Company had over 680 branches. Based on the nature of the Company's products and customers' business cycles, sales are significantly higher in the second and third quarters of each fiscal year. Share Repurchase Program On October 20, 2022, the Company's Board of Directors authorized the Company to repurchase, at any time or from time to time, shares of the Company's common stock having an aggregate purchase price not to exceed $ 400.0 million pursuant t

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