SiteOne Landscape 2025 Q2 Earnings Steady Growth with Net Income Up 9.5%

SiteOne Landscape (SITE) reported its fiscal 2025 Q2 earnings on July 30th, 2025. The company met Wall Street's revenue expectations with a 3.4% increase to $1.46 billion. However, its GAAP EPS of $2.86 slightly missed analyst expectations by 0.5%. The full-year Adjusted EBITDA guidance was raised above prior estimates, indicating optimistic future performance. Despite softer market conditions, the company remains confident in its strategic initiatives and acquisition plans.

Revenue

Earnings/Net Income
SiteOne Landscape's EPS rose 8.3% to $2.88 in 2025 Q2 from $2.66 in 2024 Q2, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $132.10 million in 2025 Q2, marking 9.5% growth from $120.60 million in 2024 Q2. The EPS growth indicates positive financial health.

Price Action

Post Earnings Price Action Review
The strategy of buying SITE shares after a revenue-raising quarter on the financial report release date and holding for 30 days resulted in a -0.97% return, significantly underperforming the benchmark return of 87.61% over the past three years. This investment approach showed a CAGR of -0.20%, with a maximum drawdown of 0.00% and a Sharpe ratio of 0.00%. These results reflect the strategy's inability to generate positive returns or effectively manage risk, highlighting the challenges of timing investments based solely on quarterly revenue increases. The underperformance underscores the need for a more comprehensive investment strategy that considers broader market conditions and company fundamentals.

CEO Commentary
"We are pleased to report continued solid results in the second quarter with 3% Net sales growth and 8% growth in Adjusted EBITDA, despite softer end markets," said Doug Black, Chairman and CEO of SiteOne. He highlighted the company's excellent SG&A leverage, improved gross margin, and market share gains while acknowledging ongoing challenges in the residential construction and repair markets. Black expressed confidence in navigating market headwinds due to positive price inflation and the execution of strategic initiatives. The company successfully completed four acquisitions year-to-date and anticipates strengthening its capabilities and delivering superior value to customers and shareholders.

Guidance
"We expect the end market demand in new residential construction and repair and upgrade to continue to be soft due to ongoing economic uncertainty," Black noted. He projected low single-digit Organic Daily Sales growth for the remainder of the year, supported by strong cost control and improved price realization. The company expects pricing to remain flat in the third quarter and rise by 1% to 2% in the fourth quarter. SiteOne maintains its full-year Adjusted EBITDA guidance in the range of $400 million to $430 million, not accounting for unannounced acquisitions.

Additional News
SiteOne Landscape has been active in acquisitions, recently closing deals with Grove Nursery and Nashville Nursery, adding to its portfolio of landscaping supplies and services. This strategic move follows the earlier acquisition of Green Trade Nursery, reinforcing SiteOne's strategy to expand its market presence and capabilities. Additionally, SiteOne has been engaged in a share repurchase program, buying back $54.3 million worth of shares under the share repurchase authorization. This reflects the company's confidence in its long-term growth prospects and commitment to returning value to shareholders. No changes in executive leadership have been reported during this period.