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Agriculture products company SiteOne Landscape Supply (NYSE:SITE) reported Q1 CY2025 results topping the market’s revenue expectations , with sales up 3.8% year on year to $939.4 million. Its non-GAAP loss of $0.33 per share was 23.9% above analysts’ consensus estimates.

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SiteOne (SITE) Q1 CY2025 Highlights:

• Revenue: $939.4 million vs analyst estimates of $933.6 million (3.8% year-on-year growth, 0.6% 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

• Free Cash Flow was -$144.4 million compared to -$108.2 million in the same quarter last year

• Organic Revenue fell 1% year on year (0.6% in the same quarter last year)

• Market Capitalization: $5.7 billion

StockStory’s Take

SiteOne’s first quarter results were shaped by modest organic sales declines, offset by contributions from recent acquisitions and improved operational efficiencies. Management pointed to weather-related disruptions and continued price deflation in key categories like PVC pipe and grass seed as primary headwinds. CEO Doug Black highlighted the company’s efforts to drive growth through both commercial initiatives and acquisition strategy, noting, “We believe that we are outperforming the market consistently through our commercial initiatives, and our end markets, though softer, have remained resilient.”

Looking ahead, SiteOne’s guidance reflects a cautious outlook due to ongoing macroeconomic uncertainty, particularly around tariffs and consumer confidence. The company expects pricing to shift from a headwind to a slight tailwind as supplier cost increases take effect, with volume growth anticipated to be positive for the remainder of the year. CFO John Guthrie emphasized the increased uncertainty, stating, “Given the changing nature of tariffs, there is greater uncertainty than normal in our outlook.”

Key Insights from Management’s Remarks

SiteOne’s leadership attributed the quarter’s financial performance to a mix of external pressures and strategic actions, while emphasizing ongoing initiatives to improve profitability and market share.

• Acquisition-Driven Growth: Recent acquisitions in nursery and hardscape businesses contributed to net sales growth, particularly compensating for softer organic volumes and helping expand SiteOne’s presence in key regional markets.

• Operational Efficiency Initiatives: SiteOne’s cost control measures, including branch consolidation and focused improvement in underperforming locations, led to lower base business SG&A (selling, general, and administrative expenses) and improved leverage despite overall higher expenses from acquired businesses.

• Digital and CRM Expansion: Significant investment in digital tools, such as siteone.com and DispatchTrack, boosted digital sales by 140% and improved delivery efficiency. Management noted these tools help capture market share and enhance productivity among sales associates.

• Product Line Strategy: The company is systematically increasing its share with small customers and promoting proprietary brands like Pro-Trade and Solstice Stone, which grew 30%, as part of its gross margin improvement initiatives.

• Tariff and Price Pass-Through: Management expects recently announced supplier price increases, due to tariffs on imported goods, to become a slight pricing tailwind in 2025. SiteOne is working to pass these costs through to customers, especially in product categories like irrigation and lighting.