SiteOne (SITE) Q2 2025 Earnings Call Transcript

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Wednesday, July 30, 2025 astatine 8 a.m. ET

• Chairman and Chief Executive Officer — Doug Black

• Executive Vice President and Chief Financial Officer — John T. Guthrie

• Executive Vice President, Strategy, Mergers and Acquisitions — Scott Salmon

Doug Black: Thanks, John. Good greeting and convey you for joining america today. We are pleased to execute continued coagulated results during the 2nd 4th with 3% nett income maturation and 8% maturation successful adjusted EBITDA, contempt broader economical uncertainty and softness successful our extremity markets. Our teams are executing our initiatives well, yielding fantabulous SG&A leverage, bully gross borderline betterment and meaningful marketplace stock gains. We besides benefited from a much favorable terms outgo situation with wide level pricing for the quarter. Finally, we added 2 fantabulous companies to SiteOne successful July, expanding our afloat merchandise enactment capableness successful those section markets.

Overall, with beardown teams, a winning strategy and fantabulous execution of our commercialized and operational initiatives, we are delivering coagulated show and maturation successful 2025, contempt softer extremity markets and are successful a beardown presumption to accelerate our show and maturation successful the coming years. I volition commencement today's telephone with a little overview of our unsocial marketplace presumption and our strategy, followed by immoderate highlights from the quarter. John Guthrie volition past locomotion you done our 2nd 4th fiscal results successful much item and supply an update connected our equilibrium expanse and liquidity position. Scott Salmon volition sermon our acquisition strategy and past I volition travel backmost to code our latest outlook earlier taking your questions.

As shown connected Slide 4 of the net presentation, we person a beardown footprint of much than 680 branches and 4 organisation centers crossed 45 United States and 6 Canadian provinces. We are the wide manufacture person implicit 3x the size of our nearest rival and larger than 2 done 10 combined. Yet we estimation that we lone person astir an 18% stock of the precise fragmented $25 cardinal wholesale landscaping products organisation market. Accordingly, our semipermanent accidental to turn and summation marketplace stock remains significant. We person a balanced premix of concern with 65% focused connected maintenance, repair and upgrade, 21% focused connected caller residential operation and 14% connected caller commercialized and recreational construction.

As the lone nationalist afloat merchandise enactment wholesale distributor successful the market, we besides person an fantabulous equilibrium crossed our merchandise lines arsenic good arsenic geographically. Our strategy to capable successful our merchandise lines crossed the U.S. and Canada, some organically and done acquisition further strengthens this equilibrium implicit time. Overall, our extremity marketplace mix, wide merchandise portfolio and geographic sum connection america aggregate avenues to turn and make worth for our customers and suppliers, portion providing important resilience successful softer markets. Turning to Slide 5.