SITE Q2 Deep Dive: Market Share Gains and Operational Discipline Drive Results Amid Soft Demand

August 12, 2025 at 23:34 PM EDT

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Agriculture products company SiteOne Landscape Supply (NYSE: SITE) met Wall Street’s revenue expectations in Q2 CY2025, with sales up 3.4% year on year to $1.46 billion. Its non-GAAP profit of $2.93 per share was in line with analysts’ consensus estimates.

Is now the time to buy SITE? Find out in our full research report (it’s free).

SiteOne (SITE) Q2 CY2025 Highlights:

Revenue: $1.46 billion vs analyst estimates of $1.47 billion (3.4% year-on-year growth, in line)
Adjusted EPS: $2.93 vs analyst estimates of $2.93 (in line)
Adjusted EBITDA: $226.7 million vs analyst estimates of $221.5 million (15.5% margin, 2.4% beat)
EBITDA guidance for the full year is $415 million at the midpoint, above analyst estimates of $405.6 million
Operating Margin: 12.8%, in line with the same quarter last year
Organic Revenue was flat year on year vs analyst estimates of flat growth (57.6 basis point miss)
Market Capitalization: $6.15 billion

StockStory’s Take

SiteOne’s second quarter was met positively by the market, as the company delivered steady performance despite challenging market conditions. Management pointed to consistent SG&A (selling, general and administrative) leverage, improved gross margins, and continued market share gains as key factors behind the quarter’s results. CEO Doug Black attributed growth in agronomic products to steady maintenance demand and highlighted ongoing progress in private label brands, digital sales, and operational initiatives. Black emphasized, “We are delivering solid performance and growth in 2025, despite softer end markets.”

Looking ahead, SiteOne’s outlook is shaped by ongoing market uncertainty and cautious end-market demand, with particular weakness in new residential construction and repair and upgrade segments. Management expects organic sales growth in the second half to come from commercial initiatives, digital expansion, and continued pricing normalization. CFO John Guthrie noted, “We expect gross margin during the remainder of the year to be slightly improved...driven by our initiatives, improved price realization, and contributions from acquisitions.” The company also anticipates further progress with its focus branch improvements and operational efficiencies.

Key Insights from Management’s Remarks

SiteOne’s management cited market share gains, digital adoption, and disciplined cost control as primary drivers of the second quarter’s performance and margin improvements.

Digital sales momentum: Management highlighted over 130% year-over-year growth in digital sales, attributing this to increased engagement through siteone.com. Customers using digital channels are growing faster, helping the company gain share and improve productivity among associates.
Private label brand expansion: The company’s private label brands, including Pro-Trade, Solstice Stone, and Portfolio, collectively grew over 30% in the first half of the year. This growth contributed to higher margins and enhanced competitiveness across product lines.
Focus branch improvement: Management reported more than 200 basis points of adjusted EBITDA margin improvement in underperforming branches, driven by team changes, customer service enhancements, and SG&A reductions. These focus branches are expected to contribute to company-wide margin gains over several years.
Freight and delivery efficiency: Adoption of the DispatchTrack system has enabled SiteOne to reduce net delivery expense by over 40 basis points on delivered sales, improving both customer experience and operational cost structure.
Acquisition activity: While 2025 is expected to be a lighter year for acquired revenue, SiteOne added four companies year-to-date, strengthening its product and geographic reach. Management emphasized a robust pipeline and ongoing relationships with potential sellers.

Drivers of Future Performance

SiteOne’s outlook relies on market share gains, digital adoption, and operational efficiencies to offset persistent end-market softness and cost pressures.

Commercial initiatives and digital growth: Management expects digital engagement and targeted commercial programs to drive organic sales growth, even as the broader landscaping market remains subdued. The expansion of digital solutions is seen as a key differentiator and growth lever.
Operational leverage and cost control: Continued SG&A discipline, branch-level improvements, and delivery optimization are projected to support margin expansion. Management believes these efforts offer a path to sustained adjusted EBITDA margin gains over the next several years.
End-market headwinds and pricing: SiteOne is monitoring persistent weakness in new residential construction and repair and upgrade markets, with modest pricing improvements expected as tariff-related costs are passed through. Management cautioned that further deterioration in market demand remains the primary risk to guidance.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will watch closely for (1) continued progress in digital adoption and its impact on organic growth, (2) further margin gains from operational initiatives such as focus branch turnarounds and delivery efficiency, and (3) evidence of sustained market share gains despite end-market softness. Acquisition activity and the ability to pass through tariff-related cost increases will also be key areas of focus.

SiteOne currently trades at $137.94, up from $128.56 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

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