SiteOne Landscape Supply, a distributor of landscaping products, has announced its financial results for the second quarter of 2025, reporting growth despite softer demand in key end markets. The company posted a 3% increase in net sales to $1.46b, with adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rising 8% to $226.7m.

Financial performance highlights

Compared to the same period in 2024, SiteOne saw gross profit climb 4% to $531.4m, with gross margin improving by 30 basis points to 36.4%. Selling, general and administrative expenses (SG&A) as a percentage of net sales decreased by 40 basis points to 23.9%, with SitOne reporting that this reflects improved operational efficiency. Net income attributable to the supplier also rose 7% to $129m.

Organic daily sales remained flat year-over-year, with growth in the maintenance sector offsetting softer demand in new residential construction and repair and upgrade markets. Additionally, acquisitions contributed $40.9m to net sales growth, including the recently closed Green Trade Nursery deal.

Strategic moves and market outlook

During the quarter, SiteOne repurchased $54.3m in shares and completed two extra acquisitions, Grove Nursery and Nashville Nursery, after the quarter’s end.

Doug Black, SiteOne’s chairman and CEO, acknowledges ongoing economic challenges, including elevated interest rates and weakening consumer confidence, but expresses positive belief in the company’s strategy. “We are executing our initiatives well, achieving excellent SG&A leverage, good gross margin improvement and continuing to gain market share,” Black comments. “With strong cost control, focus branch improvement, improved price realization, and contributions from acquisitions, we expect to expand Adjusted EBITDA margin for the full year 2025.”

Looking ahead, SiteOne anticipates continued softness in residential construction and repair markets but expects growth in maintenance and stable commercial demand. Full-year adjusted EBITDA is projected between $400m and $430m, excluding contributions from future acquisitions.

The company ended the quarter with $78.6m in cash and $499.3m in available credit, maintaining a net debt-to-adjusted EBITDA ratio of 1.3 times, which is unchanged compared to the same period in 2024.

Overall, SiteOne states that its earnings reflect resilience in a challenging economic climate, with strategic acquisitions and operational discipline driving gains. Investors will be watching for further execution on margin expansion and market share growth in the latter half of 2025.