SiteOne posts $138.3 million in adjusted earnings as organic sales fall 1%
Key Facts
SiteOne Landscape Supply reported results on October 28 for the third quarter ended September 27, 2026, posting adjusted EBITDA of $138.3 million, up 8% from $127.5 million a year earlier. Its adjusted EBITDA margin widened 60 basis points to 10.7%, while net income attributable to the company rose 8% to $63.9 million from $59.1 million. But adjusted earnings per share, according to Investing.com estimates, came in at $1.46 against expectations of $1.48, while revenue reached $1.29 billion versus an expected $1.31 billion. Investing.com said the stock was steady in after-hours trading following the results. The shares had closed at $103.03 on October 27, according to EL7 data.
Net sales rose 3% to $1,291.1 million, compared with $1,258.2 million in the same period a year earlier, but daily organic sales fell 1%. The company attributed the decline to lower sales volume amid continued weakness in its core markets and delayed fall applications due to hot, dry weather. It said these factors outweighed the impact of higher prices. Acquisitions contributed $39.7 million, or 3%, to sales growth during the quarter. Revenue growth thus coincided with a contraction in daily organic sales, while acquisitions supported the overall figure.
On profitability, gross profit increased 5% to $458.5 million from $437.2 million, and its margin widened 80 basis points to 35.5%. This coincided with growth in net income and adjusted earnings despite the decline in daily organic sales. Chief Executive Doug Black said the company delivered “strong third-quarter performance,” with adjusted earnings up 8% and the margin widening 60 basis points. He added that the results came despite continued weak demand and a delayed fall season due to hot, dry weather in key markets. Black also noted that the company completed one acquisition during the quarter.
Daily organic sales momentum slowed from the previous quarter: they had risen 1% year over year in the second quarter of 2026 before falling 1% in the third quarter. In the second quarter, net sales rose 5% to $1,530.7 million, and adjusted EBITDA increased 5% to $237.2 million. In the third quarter, net sales growth slowed to 3%, while adjusted earnings rose 8%. The comparison shows differing movements in organic sales and earnings metrics across the two periods. The company said in July that third-quarter pricing had risen 4% and that it expected the increase to continue through year-end.
SiteOne revised its fiscal 2026 outlook. In July, it had expected daily organic sales to be flat to up 1% and adjusted earnings to range from $425 million to $455 million. In its October update, it forecast daily organic sales to be flat to down 1% and adjusted earnings of $425 million to $440 million. The company said weakness in new residential construction and repair and remodel work is outweighing resilience in maintenance markets and new commercial construction. It expects end markets to remain weak through year-end, citing macroeconomic uncertainty, higher interest rates and inflation. By contrast, it said daily organic sales grew about 2% in October.
The company plans to reduce headcount and consolidate or close branches during the fourth quarter, at an estimated adjusted EBITDA cost of about $6 million to $8 million. It also warned that the 53rd financial week in December could reduce full-year daily organic sales growth by about 80 basis points. That week could lower adjusted earnings by about $4 million to $5 million. Separately, after the quarter ended, the board approved a $500 million increase in share repurchase authorization. The approval raised total authorization to about $538.3 million, including $38.3 million remaining from the previous authorization.