SiteOne Landscape Supply Q3 Earnings Miss Estimates Despite Revenue and Profit Growth

SiteOne Landscape Supply, Inc. (NYSE:SITE) reported third-quarter 2026 earnings and revenue below analyst expectations on Wednesday, as weaker underlying demand and unusually hot, dry weather affected seasonal sales activity.

The company reported adjusted earnings per share of $1.46, slightly below the consensus estimate of $1.48. Revenue increased 3% year over year to $1.29 billion, compared with analysts’ expectations of $1.31 billion.

SiteOne shares were little changed in after-hours trading following the announcement.

Weather Conditions and Lower Sales Volumes Affect Results

SiteOne attributed its weaker-than-expected performance to continued softness in market demand and a delayed autumn selling season caused by hot and dry weather in several important markets.

Organic Daily Sales declined 1% year over year, as lower sales volumes offset a 4% increase in prices.

Acquisitions contributed $39.7 million to net sales growth during the quarter, helping support overall revenue despite weaker organic performance.

Chairman and Chief Executive Officer Doug Black highlighted the company’s profitability improvements.

“We delivered a solid third quarter performance with 8% growth in Adjusted EBITDA and 60 basis points of Adjusted EBITDA margin expansion despite the continued softness in underlying market demand and a delayed fall season due to hot and dry weather in key markets,” Black said.

Gross Margin and Adjusted EBITDA Improve

SiteOne reported a 5% increase in gross profit to $458.5 million, supported by pricing improvements and commercial initiatives.

Gross margin expanded by 80 basis points to 35.5%, reflecting stronger price realization despite lower organic sales volumes.

Adjusted EBITDA increased 8% to $138.3 million, while the adjusted EBITDA margin improved by 60 basis points to 10.7%.

The profitability improvements helped offset some of the effects of softer demand during the quarter.

SiteOne Provides Full-Year 2026 Guidance

For fiscal year 2026, SiteOne expects adjusted EBITDA of between $425 million and $440 million, representing a midpoint of $432.5 million.

The company forecasts full-year Organic Daily Sales to be flat to 1% lower compared with the previous year.

The outlook includes the effect of a 53rd week in December, which is expected to reduce reported Organic Daily Sales growth by approximately 80 basis points.

The guidance reflects continued pressure on underlying demand, alongside the company’s efforts to maintain profitability through pricing and operational improvements.

Share Repurchase Authorization Increased by $500 Million

SiteOne repurchased $62.2 million of its shares during the third quarter as part of its capital allocation activities.

The company also announced a $500 million increase to its existing share repurchase authorization, expanding its capacity to return capital to shareholders through future buybacks.

The additional authorization follows the company’s continued investment in acquisitions and operational initiatives.

SiteOne Landscape Supply Outlook

SiteOne’s third-quarter revenue increased 3% to $1.29 billion, although both sales and adjusted earnings fell slightly below analyst forecasts.

Organic Daily Sales declined 1%, reflecting weaker volumes and weather-related delays, while acquisitions supported overall revenue growth.

Despite these challenges, adjusted EBITDA rose 8% and gross margin improved to 35.5%.

The company maintained a full-year adjusted EBITDA outlook of $425 million to $440 million, while anticipating flat to slightly negative organic daily sales growth for 2026.

SiteOne Landscape Supply stock price