SiteOne’s first-quarter performance showed resilience in a challenging market, with the company delivering above-consensus sales and adjusted EBITDA. Management attributed the result to effective cost controls implemented in 2024, solid execution despite weather-related headwinds, and early benefits from moderating price deflation. CEO Doug Black highlighted that, “our teams executed well and we benefited from our strong cost control actions in 2024,” while also noting that acquisitions contributed to sales growth and expanded SiteOne’s product reach.
Is now the time to buy SITE? Find out in our full research report (it’s free).
SiteOne (SITE) Q1 CY2025 Highlights:
- Revenue: $939.4 million vs analyst estimates of $932.7 million (3.8% year-on-year growth, 0.7% beat)
- Adjusted EPS: -$0.33 vs analyst estimates of -$0.44 (23.9% beat)
- Adjusted EBITDA: $22.4 million vs analyst estimates of $19.84 million (2.4% margin, 12.9% beat)
- EBITDA guidance for the full year is $415 million at the midpoint, in line with analyst expectations
- Operating Margin: -3.1%, in line with the same quarter last year
- Organic Revenue fell 1% year on year (0.6% in the same quarter last year)
- Market Capitalization: $5.46 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions SiteOne’s Q1 Earnings Call
- David Manthey (Baird) asked about progress with DispatchTrack and focused branch initiatives; CEO Doug Black explained both are delivering SG&A savings and improved operational efficiency, though full benefits will emerge over several years.
- Ryan Merkel (William Blair) questioned the impact of tariffs on pricing and gross margin; CFO John Guthrie clarified that most tariff costs are indirect and being passed through selectively, with minimal direct imports.
- Damian Karas (UBS) pressed for details on supplier sourcing and gross margin outlook; Guthrie indicated gross margin should remain steady, with improvements dependent on SG&A leverage rather than pricing.
- Charles Perron-Pich (Goldman Sachs) asked about inventory management amid inflation and macro uncertainty; Guthrie described targeted inventory build in high-risk categories to mitigate supply chain disruption, balanced against maintaining flexibility for acquisitions and share repurchases.
- Mike Dahl (RBC Capital Markets) sought clarification on end-market assumptions and margin drivers; Black acknowledged mixed signals from builders and described the outlook as “flat to down slightly,” with operational initiatives mitigating downside risk.
Catalysts in Upcoming Quarters
In the quarters ahead, our team will watch (1) whether digital sales and private label growth can sustain momentum in a flat demand environment, (2) the company’s ability to manage freight and tariff-related cost pressures without eroding margins, and (3) progress in turning around underperforming branches and capturing SG&A leverage. M&A activity and the impact of macroeconomic conditions on SiteOne’s key end markets will also be important markers.
SiteOne currently trades at $121.82, up from $114.04 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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