SiteOne Landscape Supply Reports Q2 Earnings with Sales Growth Amid Soft Demand
SiteOne Landscape Supply (NYSE:SITE) reported second-quarter net sales growth of 5% to $1.53 billion and adjusted EBITDA growth of 5%, driven by pricing, acquisitions, and commercial initiatives despite softer demand in key markets. Chairman and CEO Doug Black noted that new residential construction and repair activity were weak, particularly affecting Sun Belt regions like California, Arizona, and Texas. The company expects a high single-digit decline in new residential landscaping sales for the year and mid-single digit declines in repair and upgrade demand. However, maintenance demand remained stable at 36% of total sales. Gross profit increased by 6%, with an expanded margin to 36.9%. This was attributed to price realization, growth in private-brand products like Pro-Trade, Solstice, and Portfolio, as well as digital sales through siteone.com rising over 50% year-to-date.
Tickers: $SITE
Topics: acquisitions construction pricing strategy residential demand