SiteOne Landscape Supply : First Quarter 2025 Earnings

Published: 2025-04-30 08:53:15 ET SITE

First Quarter 2025 Earnings

John Guthrie, CFO

Doug Black, Chairman and CEO

John Guthrie, CFO

Scott Salmon, EVP Strategy & Development

Doug Black, Chairman and CEO

More than three times the size of next competitor and only ~18% market share(1)

Serving residential and commercial

landscape professionals

Complementary value-added services

and product support

Approximately 170,000 SKUs(1)

Control

Balanced by product and end markets (FY24)

Outdoor Lighting

centers covering 45 U.S. states and six

Canadian provinces(2)

Products 4%

Nursery 11%

Irrigation

24%

Repair & Upgrade

30%

Maintenance

35%

Landscape Accessories 13%

Fertilizer & Other 14%

Hardscapes 26%

As of year-end 2024. Source: Management estimates, Company data, independent 3rd party support Branch count as of First Quarter 2025

New Construction 35%

Current strategy

Fully exploit our scale, resources and capabilities

Execute local market growth strategies

Value creation levers

Organic growth

Margin expansion

Acquisition growth

Deliver superior value to our customers and suppliers

Close and integrate high value-added acquisitions

Entrepreneurial local area teams supported by world-class

functional support

Category management

Supply chain

Salesforce performance

Operational excellence

Marketing and Digital

Net Sales Adjusted EBITDA

'16-'24

Growth

32.0%

31.3%

($ in Millions)

$4,301

$4,541

$3,476

$4,015

$2,705

$2,358

$1,862

$2,112

$1,648

32.1%

32.8%

33.3%

34.9%

35.4%

34.7%

34.4%

'16-'24

Growth

Sales $

+176%

GM %

+310bps

Adj. EBITDA $

8.1%

($ in Millions)

$464

$415

$411

$378

$260

$201

$157

$176

$134

8.4%

8.3%

8.5%

9.6%

8.3%

9.5%

11.9%

11.6%

+182%

Adj. EBITDA

% +20 bps

FY 2016

FY 2017 FY 2018 FY 2019

FY 2020

FY 2021

FY 2022

FY 2023

FY 2024

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023

FY 2024

Net Sales Gross Margin %

2016-'17

2018

2019 2020

2021 2022

2023

2024

2025

Initial Public Offering

Building the Foundation

Performance & Growth

Hydro-Scape

Pete Rose

Cutting Edge

Wittkopf

Lucky Landscape

JK Enterprise

J&J Materials

Eggemeyer

Pacific Nurseries

Blue Max

Atlantic Irrigation

All Pro Horticulture

Empire Supplies

Arizona Stone &

BellStone Masonry

Triangle Landscape

Devil Mountain

Green Trade Nursery

Acquisitions

Bissett

Glen Allen

Village Nurseries

Terrazzo & Stone

Landscape Depot

Fisher's Depot

The Garden Dept

Big Rock

Solstice

Timberwall

Preferred Seed

Across the Pond

Supplies

Adams Wholesale

Wholesale Nursery

Hardscape.com

Loma Vista

Landscaper's Choice ■ Stone & Soil Depot

Alliance Stone

Melrose Irrigation ■ Yard Works

Link Outdoor Lighting

Cohen & Cohen

East Haven

Aspen Valley

Stone Forest

Angelo's

AB Supply

Evergreen Partners

Auto-Rain

All American Stone

Landscape Express

Kirkwood

Stone Center

CentralPro

Voss Materials

Trendset Concrete

Design Outdoor

Dirt Doctors

Daniel Stone

Modern Builders

BURNCO

Hedberg Supply

Alpine Materials

Dirt and Rock

Stone Center of VA

Rock & Block

Green Brothers

Semco Stone

Seffner Rock

Prescott Dirt

A&A Stepping Stone

River Valley Hort

Cape Cod Stone

Linzel Distributing

Jim Stone

Hickory Hill

New England Silica

Timothy's Center for Gardening

Pioneer Landscape Centers

Millican Nurseries

OakStreet Wholesale Nursery

Custom Stone

South Coast Supply ■ C&C Sand and Stone

Stone Plus

Regal Chemical

Marshall Stone

All Around

Kaknes Landscape

JMJ Organics

Harmony Gardens

Madison Block & Stone ■ Newsom Seed

Telluride Natural Stone

Whittlesey Landscape

# of markets(1)

Full Product Line Offering

Missing either Hardscapes or Nursery

Missing both Hardscapes and Nursery

No Presence

~60

SiteOne offers all

product lines in only

~25% of our target markets today…

~70

~60

~50

(1) Target markets as of Fourth Quarter 2024 are represented by metropolitan statistical areas ("MSAs") where either SiteOne

currently has a presence or MSAs with a population above ~210k, which cover ~80% of the total U.S. population.

First Quarter 2025 highlights (compared to First Quarter 2024):

Net sales increased 4% to $939.4 million and Organic Daily Sales decreased 1%

Gross profit increased 3% to $309.8 million; gross margin contracted 30 basis points to 33.0%

SG&A as a percentage of Net sales increased 30 basis points to 36.5%; Base Business SG&A

decreased 3% on an adjusted basis

Net loss attributable to SiteOne of $27.3 million, compared to Net loss of $19.3 million

Adjusted EBITDA1 increased 6% to $22.4 million; margin improved 10 basis points to 2.4%

Cash used in operating activities increased $30.3 million to $129.6 million

Completed the acquisition of Pacific Nurseries

Recent Developments

Completed the acquisition of Green Trade Nursery

Summary financials Financial highlights (compared to prior-year period)

$939.4

$904.8

+4%

(in millions)

Q1'24 Q1'25

+3%

Organic Daily Sales decreased 1% due to a later start to the spring selling season, lower prices for commodity products, and a softer repair and remodel end market

Acquired sales were $45.1 million, contributing 5% to the

overall growth rate

Net sales

Gross profit & margin

Net loss

Adjusted

EBITDA1

33.3%

33.0%

$309.8

$301.2

- Gross margin contracted 30 basis points to 33.0%, due to lower price realization and higher freight expense, partially offset by positive contributions from acquisitions

$(27.3)

Q1'24 Q1'25

$(19.3)

$22.4

$21.1

+6%

2.4%

Q1'24 Q1'25

2.3%

Q1'24 Q1'25

Reflects higher SG&A expenses, partially offset by higher Net sales

Adjusted EBITDA margin improved 10 basis points to 2.4%

Quarter ended March 30, 2025 Balance sheet & cash flow highlights (compared to prior-year period)

($ in millions)

Working capital

Cash used in operating activities

Capital expenditures

$1,006.2

$129.6

$14.8

Increase attributable to acquisitions and early purchases of inventory ahead of potential tariffs

Reflects early purchases of inventory

Increased investment in branch improvements and branch equipment

Liquidity of $524.3 million consisting of $56.6 million of cash and

$467.7 million in available ABL borrowing capacity

Net debt is calculated as long-term debt plus finance leases, net of cash and cash equivalents

Leverage ratio defined as net debt (including finance leases) to trailing twelve months Adjusted EBITDA

In line with target leverage range of 1.0x to 2.0x

2014 -

2019

2020

Wittkopf Landscape Supplies

Empire Supplies

The Garden Dept.

Big Rock

Alliance Stone

Modern Builders

BURNCO

Landscape Centres

Hedberg Supply

Alpine Materials

Dirt and Rock

Stone Center of VA

2021

Lucky Landscape

Arizona Stone & Solstice

Timberwall

Melrose Irrigation Supply

Rock & Block

Green Brothers

Semco Stone

Seffner Rock & Gravel

2022

JK Enterprise

BellStone Masonry

Preferred Seed

Across the Pond

Yard Works

Prescott Dirt

A&A Stepping Stone

River Valley Horticultural

Cape Cod Stone

Linzel Distributing

Jim Stone

Stone Plus

Kaknes Landscape

Madison Block & Stone

Telluride Stone

Whittlesey Landscape

2023

J&J Materials

Triangle Landscape Supplies

Adams Wholesale Supply

Link Outdoor Lighting

Hickory Hill Farm & Garden

New England Silica

Timothy's Center for Gardening

Pioneer Landscape Centers

Regal Chemical

JMJ Organics

Newsom Seed

2024

Eggemeyer

Devil Mountain Wholesale Nursery*

Hardscape.com

Cohen & Cohen Natural Stone

Millican Nurseries

OakStreet Wholesale Nursery

Custom Stone

2025

Pacific Nurseries

Green Trade Nursery

Total

# Acquisitions 45 11 8

16 11 7

2 100

Annualized net sales1

# branches added

~$880M

222

~$190M

~$155M

~$240M

~$320M

~$200M

~$20M

~$2,005M

419

Trailing twelve months (TTM) revenues in the year acquired

* Acquired 75% interest in Devil Mountain Wholesale Nursery; annualized net sales includes 100% of Devil Mountain's TTM net sales 11

Devil Mountain Pacific Nurseries

Pacific Nurseries

Closed on January 2nd

Acquired by our Devil Mountain joint venture partner

Expands our leading wholesale nursery presence in the Bay Area

Purchasing synergies

Cross-selling synergies

SiteOne Green Trade

Green Trade Nursery

Closed on March 31st

Wholesale nursery distributor in the

north Atlanta market

Purchasing synergies

Cross-selling synergies

SiteOne is the leading industry consolidator

Significant sourcing advantage with 80+ leaders scouting new growth opportunities

Our pipeline is deep and expanding

Experienced M&A team driving strong acquisition growth

18%

Acquisitions are expected to be accretive and present significant profit growth potential

Uncertainty in tariffs, inflation, and interest rates could negatively affect end market demand

Demand expected to be flat to slightly down with solid maintenance growth, continued soft repair and upgrade demand, and resilient but uncertain demand in residential and commercial new construction

Pricing flat to up 1% with deflation in select commodity products more than offset by other product price increases

Key commercial and operational initiatives expected to support market share gains and low single digit Organic Daily Sales growth

Actions taken in 2024 and ongoing tight SG&A management to yield improved leverage

Adjusted EBITDA margin is expected to be higher than prior year

Continued prudent M&A activity in the current uncertain environment

Full year Adjusted EBITDA expected to be $400 million to $430 million

Uniquely attractive industry

Clear market leader

Proven management team

Compelling and sustainable growth strategy

Value-creating

acquisitions

Operational and commercial excellence

Appendix

Non-GAAP Reconciliations

Adjusted EBITDA Reconciliation

Q1'25

Q4'24

Q3'24

Q2'24

Q1'24

Q4'23

Q3'23

Q2'23

Reported Net income (loss)

$(27.5)

$(21.5)

$44.6

$120.6

$(19.3)

$(3.4)

$57.3

$124.0

Income tax expense (benefit)

(9.4)

(10.1)

15.8

40.0

(9.7)

(5.0)

17.5

40.0

Interest expense, net

7.4

6.7

9.5

9.0

6.7

6.5

6.4

7.3

Depreciation & amortization

35.4

35.6

35.9

34.6

32.9

34.6

31.3

31.0

EBITDA

$5.9

$10.7

$105.8

$204.2

$10.6

$32.7

$112.5

$202.3

A Stock-based compensation

13.6

5.5

5.2

3.8

10.5

5.0

7.1

B (Gain) loss on sale of assets

(0.2)

1.5

0.3

(0.3)

(1.0)

(0.1)

(0.2)

0.2

C Financing fees

0.5

0.4

0.1

D Acquisitions & other

3.1

14.1

3.0

2.8

1.0

2.3

2.1

1.5

E Adjusted EBITDA

$22.4

$31.8

$114.8

$210.5

$21.1

$39.9

$119.8

$211.2

($ in millions) 2025 2024 2023

A Represents stock-based compensation expense recorded during the period.

Represents any gain or loss associated with the sale of assets and termination of finance leases not in the ordinary course of business. Represents fees associated with our debt refinancing and debt amendments.

Represents professional fees and settlement of litigation, performance bonuses, and retention and severance payments related to historical acquisitions. Also included is the cost of inventory that was stepped up to fair value during the second quarter of 2024 related to the purchase accounting of Devil Mountain and charges during the fourth quarter of 2024 for consolidating or closing certain Pioneer locations. We cannot predict the timing or amount of any such fees or payments. These amounts are recorded in Cost of goods sold and Selling, general and administrative expenses in the Consolidated Statements of Operations.

Adjusted EBITDA excludes any earnings or loss of acquisitions prior to their respective acquisition dates for all periods presented. Adjusted EBITDA includes Adjusted EBITDA attributable to non-controlling interest of $0.3 million for the first quarter of 2025, and $0.8 million, $0.8 million, and $0.9 million for the fourth, third, and second quarter of 2024, respectively.

Adjusted EBITDA Reconciliation

($ in millions) 2024 2023 2022 2021 2020 2019 2018 2017 2016

Reported Net income

$124.4

$173.4

$245.4

$238.4

$121.3

$77.7

$73.9

$54.6

$30.6

Income tax expense

36.0

49.8

67.7

56.1

27.5

13.8

1.3

18.0

21.3

Interest expense, net

31.9

27.1

20.0

19.2

31.0

33.4

32.1

25.2

22.1

Depreciation & amortization

139.0

127.7

103.8

83.0

67.2

59.5

52.3

43.1

37.0

EBITDA

$331.3

$378.0

$436.9

$396.7

$247.0

$184.4

$159.6

$140.9

$111.0

Stock-based compensation

25.0

25.7

18.3

14.3

10.6

11.7

7.9

5.9

5.3

(Gain) Loss on sale of assets

0.5

(0.5)

(0.8)

(0.1)

(0.4)

0.3

(0.4)

0.6

Advisory fees

8.5

Financing fees

0.5

0.3

0.7

0.8

1.7

4.6

Acquisitions, rebranding &

20.9

7.0

9.6

3.5

3.0

4.7

8.1

4.9

other

Adjusted EBITDA

$378.2

$410.7

$464.3

$415.1

$260.2

$201.1

$176.0

$157.2

$134.3

Represents stock-based compensation expense recorded during the period.

Represents any gain or loss associated with the sale of assets and termination of finance leases not in the ordinary course of business.

Represents fees paid to CD&R and Deere for consulting services. In connection with the IPO, we entered into termination agreements with CD&R and Deere

pursuant to which the parties agreed to terminate the related consulting agreements.

Represents fees associated with our debt refinancing and debt amendments, as well as fees incurred in connection with our initial public offering and secondary offerings.

Represents professional fees and settlement of litigation, performance bonuses, and retention and severance payments related to historical acquisitions. Also included is the cost of inventory that was stepped up to fair value related to the purchase accounting of Devil Mountain and charges for consolidating or closing certain Pioneer locations during the 2024 Fiscal Year. We cannot predict the timing or amount of any such fees or payments. These amounts are recorded in Cost of goods sold and Selling, general and administrative expenses in the Consolidated Statements of Operations.

2025 Organic Daily Sales Reconciliation

2025

2024

($ in millions)

FY'25

Q4'25

Q3'25

Q2'25

Q1'25

FY'24

Q4'24

Q3'24

Q2'24

Q1'24

Reported Net Sales

$939.4

$4,540.6

$1,013.1

$1,208.8

$1,413.9

$904.8

Organic Sales

894.3

4,430.8

971.9

1,166.9

1,387.2

904.8

Acquisition contribution

45.1

109.8

41.2

41.9

26.7

Selling Days

252

Organic Daily Sales

$14.0

$17.6

$15.9

$18.5

$21.7

$14.1

Organic Sales equals reported Net sales less Net sales from branches acquired in 2025 and 2024.

Represents Net sales from acquired branches that have not been under our ownership for at least four full fiscal quarters at the start of the 2025 fiscal year. Includes Net sales from branches acquired in 2025 and 2024.

Disclaimer

SiteOne Landscape Supply Inc. published this content on April 30, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2025 at 12:33 UTC.