SiteOne Grows Profit Despite Soft Demand, Adds $500 Million to Buyback

SiteOne Landscape Supply squeezed out higher profits in the third quarter even as sales volume slipped, and the company's board added $500 million to its stock buyback authorization.

The Roswell, Georgia, distributor of landscaping supplies reported third-quarter net sales of $1.291 billion, up 3% from $1.258 billion a year earlier, according to the earnings release it filed with an 8-K on Wednesday. Acquisitions contributed $39.7 million, or 3 percentage points, of growth.

Weather and weak demand weigh on volume

Organic daily sales, which strip out acquisitions and adjust for selling days, fell 1%. The company said lower volume amid soft underlying demand and a delayed fall season, caused by hot and dry weather in key markets, more than offset higher prices.

"We delivered a solid third quarter performance with 8% growth in Adjusted EBITDA and 60 basis points of Adjusted EBITDA margin expansion despite the continued softness in underlying market demand," Chairman and CEO Doug Black said.

Margins move higher

Gross profit rose 5% to $458.5 million, and gross margin widened 80 basis points to 35.5%, driven mainly by price realization, including fuel surcharges, according to the release. Selling, general and administrative expenses rose to $368.7 million, or 28.6% of sales, up 20 basis points, reflecting higher fuel and healthcare costs and lower volume.

Net income attributable to SiteOne rose 8% to $63.9 million. Adjusted EBITDA increased 8% to $138.3 million, and adjusted EBITDA margin improved to 10.7%.

Operating cash flow was $125.6 million, down $3.0 million. Net debt was $522.6 million at quarter-end, or 1.2 times trailing adjusted EBITDA.

Bigger buyback

SiteOne repurchased $62.2 million of shares during the quarter. After the quarter ended, the board approved a $500 million increase to the repurchase program, bringing the total available to about $538.3 million, including roughly $38.3 million left under the prior $400 million authorization. The program has no expiration date.

The company also completed one acquisition in the quarter, Patterson Nursery Sales, and said its deal pipeline is very active.

Outlook

Black said end markets remain challenging, with declines in new residential construction and repair and upgrade work more than offsetting steadier maintenance and new commercial construction. Pricing rose 4% in the quarter, and the company expects that to continue for the rest of the year.

SiteOne said it is seeing organic daily sales growth of about 2% so far in October, which it expects to produce flat to 1% organic daily sales growth for the four months from July through October. The company said it expects end-market softness to continue through the full year, citing macroeconomic uncertainty, high interest rates and inflation, along with the negative impact of a 53rd week.

Sources

1. SiteOne Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 28, 2026 (accession 0001104659-26-119300)

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