SiteOne Landscape Supply, Inc. (NYSE:SITE) posted fourth-quarter results on Wednesday showing a smaller-than-expected loss, but its cautious 2026 outlook weighed on the stock in early trading.
Shares fell 2.61% in premarket action following the release.
The landscaping products distributor reported a net loss of $0.20 per share for the quarter, slightly better than analysts’ expectations of a $0.21 loss.
Quarterly revenue totaled $1.05 billion, matching consensus estimates and marking a 3% increase from the year-ago period. Organic daily sales rose 2% year over year, supported by firmer pricing and steady demand in the maintenance segment.
“The fourth quarter marked a good close to a challenging year as we delivered positive Organic Daily Sales growth and continued adjusted EBITDA margin expansion despite a persistently unfavorable operating environment,” said Doug Black, SiteOne’s Chairman and CEO.
Adjusted EBITDA climbed 18% to $37.6 million, while the margin improved by 50 basis points to 3.6%. Gross profit increased 6% to $356.8 million, with gross margin expanding 80 basis points to 34.1%.
For full-year 2025, SiteOne generated net sales of $4.70 billion, up 4% from the prior year, with organic daily sales advancing 1%. Net income attributable to the company rose 23% to $151.8 million.
Looking ahead, management expects pricing to rise between 1% and 3% in 2026 as commodity deflation pressures ease. However, overall demand is projected to remain flat, as gains in maintenance activity are expected to be offset by softness in new residential construction. The company guided for adjusted EBITDA in the range of $425 million to $455 million for 2026.
“We are pleased with our performance against the many headwinds, achieving 4% Net sales growth, Gross margin improvement, SG&A leverage, and double-digit adjusted EBITDA growth compared to the prior-year period,” Black added.
During the quarter, SiteOne completed three acquisitions and repurchased $40 million of stock under its buyback program. The company’s net debt-to-adjusted EBITDA ratio improved to 0.8x at year-end, down from 1.1x at the end of 2024.