GET DAILY SIGNALSSiteOne Landscape Supply (SITE) Posts Q3 Results With +8% Adjusted EBITDA Growth
Key Takeaways
- Net sales rose 3% year over year to $1,291.1 million, while Organic Daily Sales declined 1% as lower volume outweighed higher prices.
- Diluted earnings per share (EPS) reached $1.46, up from $1.31 a year earlier and above consensus estimates of about $1.40.
- Adjusted EBITDA grew 8% to $138.3 million, with margin expanding 60 basis points to 10.7%.
- Total revenue came in slightly below consensus, while gross margin improved 80 basis points to 35.5% on strong price realization.
- The board approved a $500 million increase to the share repurchase authorization, and management reaffirmed full-year Adjusted EBITDA guidance of $425 million to $440 million.
Earnings Context and Why It Matters
SiteOne Landscape Supply, Inc. (SITE) is the largest and only nationwide full product line wholesale distributor of landscape supplies in the United States, with an established presence in Canada. Its results serve as a temperature check on the broader landscaping and outdoor construction economy, spanning maintenance, repair and upgrade, residential construction, and commercial projects. Heading into this report, investors were watching whether pricing power and cost discipline could offset persistent softness in end-market demand and a delayed fall season caused by hot, dry weather. Because SiteOne has historically expanded margins through price realization and operational initiatives even during weaker demand, this quarterly print was closely followed for signs that the company could keep growing earnings while navigating a challenging macro backdrop. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results
For its fiscal third quarter ended September 27, 2026, SiteOne reported net sales of $1,291.1 million, up 3% from $1,258.2 million in the prior-year period. The increase was driven by acquisitions, which contributed $39.7 million, or 3%, to growth, while Organic Daily Sales decreased 1% as a roughly 5% decline in sales volume more than offset a 4% contribution from higher prices.
Gross profit rose 5% to $458.5 million, and gross margin expanded 80 basis points to 35.5%, reflecting strong price realization and the benefit of fuel surcharges. Selling, general and administrative expenses (SG&A) increased to $368.7 million, with SG&A as a percentage of net sales up 20 basis points to 28.6% due to higher fuel and healthcare costs and lower volume. Net income attributable to SiteOne climbed 8% to $63.9 million, producing diluted EPS of $1.46, up from $1.31 a year ago.
Adjusted EBITDA increased 8% to $138.3 million, and Adjusted EBITDA margin improved 60 basis points to 10.7%. Against expectations, EPS of $1.46 beat consensus near $1.40, and Adjusted EBITDA of $138.3 million came in above estimates of roughly $134.2 million, while total revenue fell slightly short of the approximately $1.30 billion consensus.
Market Reaction and Investor Sentiment
Following the release, SiteOne shares traded lower as investors weighed the mixed nature of the results against a still-soft demand environment. The earnings and Adjusted EBITDA beats were tempered by a modest revenue miss and a 1% decline in Organic Daily Sales, a closely watched metric that strips out acquisition contributions. The delayed start of the fall season, driven by hot and dry weather in key markets, added to near-term uncertainty. Still, management's commentary highlighted solid execution, with gross margin expansion and growth in private brand and digital sales, while the $500 million increase to the buyback authorization signaled confidence in long-term value creation. Overall, sentiment reflected a market balancing strong profitability against persistent top-line softness.
Forward Outlook and Key Factors to Monitor
Management expects challenging end-market conditions to persist through the balance of fiscal 2026, citing ongoing macroeconomic uncertainty, high interest rates, and inflation. Pricing rose 4% in the quarter and is expected to continue, though the company anticipates full-year Organic Daily Sales to be flat to down 1%, partly reflecting the negative impact of a 53rd week in December.
Investors should watch several items in the coming quarters. First, the company plans to reduce its workforce and consolidate or close branches in the fourth quarter, incurring a corresponding charge to Adjusted EBITDA of roughly $6 million to $8 million. Second, the 53rd week is expected to reduce full-year Adjusted EBITDA by approximately $4 million to $5 million.
Despite these headwinds, management expects to expand Adjusted EBITDA margin slightly in 2026 and reaffirmed full-year Adjusted EBITDA guidance of $425 million to $440 million. Key monitors include the pace of October's positive Organic Daily Sales growth, gross margin sustainability through price realization, delivery cost efficiency, and the integration of acquisitions such as Patterson Nursery. A robust M&A pipeline and ongoing share repurchases remain central to SiteOne's long-term growth strategy.
Using Tickeron Tools for Deeper Analysis
In reviewing the quarter, I turned to Tickeron’s AI Screener to cross-check how SiteOne’s metrics stack up against peers and to identify any emerging patterns in the landscaping sector. The platform’s ability to filter by fundamentals, technical signals, and performance trends helped me quickly validate the key drivers behind the margin expansion and the revenue miss. It is a practical step I often take when evaluating quarterly results like these, especially when trying to separate company-specific execution from broader industry pressures.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
SITE in upward trend: price rose above 50-day moving average on October 15, 2026
SITE moved above its 50-day moving average on October 15, 2026 date and that indicates a change from a downward trend to an upward trend. In 36 of 50 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 72%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 15, 2026. You may want to consider a long position or call options on SITE as a result. In 48 of 75 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 64%.
The Moving Average Convergence Divergence (MACD) for SITE just turned positive on October 13, 2026. Looking at past instances where SITE's MACD turned positive, the stock continued to rise in 34 of 50 cases over the following month. The odds of a continued upward trend are 68%.
The 10-day moving average for SITE crossed bullishly above the 50-day moving average on October 23, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 53%.
Following a +6.82% 3-day Advance, the price is estimated to grow further. Considering data from situations where SITE advanced for three days, in 188 of 272 cases, the price rose further within the following month. The odds of a continued upward trend are 69%.
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 8 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SITE declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 77%.
SITE broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for SITE entered a downward trend on October 16, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 56 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.665) is normal, around the industry mean (4.085). P/E Ratio (28.074) is within average values for comparable stocks, (0.574). Projected Growth (PEG Ratio) (0.490) is also within normal values, averaging (2.538). Dividend Yield (0.000) settles around the average of (0.492) among similar stocks. P/S Ratio (0.829) is also within normal values, averaging (3.013).
The Tickeron Price Growth Rating for this company is 56 (best 1 - 100 worst), indicating fairly steady price growth. SITE’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 71 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 82 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SITE’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 66, placing this stock worse than average.
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General Information
a distributer of commercial and residential landscape supplies
Industry ElectronicsDistributors
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