Question · Q3 2025
Charles Perron-Pich inquired about SiteOne Landscape Supply Inc.'s capital allocation strategy, specifically if a higher focus on shareholder returns, such as share repurchases, would be considered if the M&A market remains softer, given the company's leverage is at the low end of its target range. He also asked about the benefits of commercial initiatives on pricing this quarter and if further mix benefits are expected.
Answer
John Guthrie, EVP, CFO, and Assistant Secretary, confirmed that being at the bottom of their leverage range, coupled with a softer M&A market, certainly supports increased share repurchases, though acquisitions remain the primary investment priority. He clarified that commercial initiatives primarily contribute to gross margin improvement through factors like private label growth and small customer initiatives, separate from direct pricing benefits, with both contributing to overall performance.