Executive Summary

Q1 2025 net sales rose 4% to $939.4M as acquisitions (+$45.1M) offset a 1% Organic Daily Sales decline; adjusted EBITDA increased 6% to $22.4M while gross margin contracted 30 bps to 33.0% due to lower price realization and higher freight .
Management raised 2025 pricing outlook to flat to up ~1% (vs flat/down in Q4 guidance) on tariff-driven supplier increases, but now expects full-year gross margin to be “similar to 2024,” tempering prior optimism; adjusted EBITDA guidance maintained at $400–$430M .
Q1 missed year-ago EPS (GAAP diluted -$0.61 vs -$0.43) on higher SG&A tied to acquisitions; base business SG&A fell 3% (adjusted), and initiatives like DispatchTrack and focused branch actions drove SG&A leverage .
Wall Street consensus (S&P Global) was modestly outperformed: revenue beat ($939.4M vs $933.9M*) and Primary EPS (normalized) beat (-$0.33 vs -$0.44*); adjusted EBITDA beat ($22.4M vs $19.8M*) on acquisitions and cost controls, despite gross margin pressure . Values retrieved from S&P Global*.
Near-term stock catalysts: tariff pass-through turning price deflation to neutral/slight tailwind, continued SG&A leverage, and improving volume into April; risks include elevated freight, softer repair/upgrade demand, and tariff uncertainty on end markets .

What Went Well and What Went Wrong

What Went Well

Adjusted EBITDA grew 6% to $22.4M and margin expanded 10 bps to 2.4%, reflecting SG&A leverage and acquisitions, despite pricing headwinds .
Cost actions: base business SG&A decreased ~3% (adjusted) and focused branches/Pioneer restructuring showed early benefits; management expects sustained SG&A leverage through 2025 .
Commercial execution: digital sales +140% YoY, private label brands grew ~30%, expanding small customer penetration and productivity gains via CRM .

Management quotes:

“We are pleased to report a solid start to 2025, with total sales growth of 4% and Adjusted EBITDA growth of 6%.” — Doug Black .
“We expect to achieve solid SG&A leverage on an adjusted basis in 2025, even with modest organic growth.” — Doug Black .
“Customers who are engaged with us digitally grew significantly faster… We grew our Digital sales by 140% in the first quarter.” — Doug Black .

What Went Wrong

GAAP diluted EPS deteriorated to -$0.61 (vs -$0.43 LY) on higher SG&A mix from acquisitions and lower price realization; gross margin fell 30 bps to 33.0% .
Organic Daily Sales declined 1% on colder weather (later spring), commodity deflation (PVC ~-21%, grass seed ~-10%), and soft repair/upgrade demand .
Freight costs elevated and inventory pre-buys ahead of tariffs pressured cash from operations (-$129.6M vs -$99.3M LY) and raised net debt to ~$580M (1.5x TTM adj. EBITDA) .

Financial Results

Core financials vs prior periods

Metric	Q1 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$904.8	$1,013.1	$939.4
GAAP Diluted EPS ($)	-0.43	-0.48	-0.61
Gross Margin (%)	33.3%	33.3%	33.0%
SG&A as % of Sales (%)	36.2%	36.0%	36.5%
Adjusted EBITDA ($USD Millions)	$21.1	$31.8	$22.4
Adjusted EBITDA Margin (%)	2.3%	3.1%	2.4%

Note: Q1 2024 gross margin percent is inferred from the Q1 highlights stating contraction to 33.0% in Q1 2025 from prior-year; table above uses 33.3% as referenced in Q4/Q1 disclosures .

Actual vs S&P Global consensus (Q1 2025)

Metric	Actual	Consensus	Surprise
Revenue ($USD Millions)	$939.4	$933.9*	+$5.5M*
Primary EPS (Normalized) ($)	-0.33*	-0.44*	+$0.11*
Adjusted EBITDA ($USD Millions)	$22.4	$19.8*	+$2.6M*

Values retrieved from S&P Global*. GAAP diluted EPS was -$0.61 .

Segment/product indicators

Category	Q3 2024 YoY	Q4 2024 YoY	Q1 2025 YoY
Agronomic products (fertilizer, controls, equipment)	+2%	+6%	+7%
Landscaping products (irrigation, nursery, hardscapes, lighting, accessories)	-2%	-1%	-4%

KPIs and balance sheet

KPI	Q3 2024	Q4 2024	Q1 2025
Selling Days	63	61	64
Organic Daily Sales ($ per selling day)	$17.3	$15.0	$14.0
Acquisition Sales Contribution ($USD Millions)	$77	$43	$45.1
Cash from Operations ($USD Millions)	$116 (Q3)	$119.4 (Q4)	-$129.6 (Q1)
Net Debt ($USD Millions)	~$449	$411.7	$580.4
Net Debt / TTM Adjusted EBITDA (x)	1.2x	1.1x	1.5x
Liquidity: Cash ($USD Millions)	$86 (Q3 cash)	$107.1	$56.6
Liquidity: ABL Availability ($USD Millions)	$561 (Q3 availability)	$581.2	$467.7

Guidance Changes

Metric	Period	Previous Guidance (Q4 2024)	Current Guidance (Q1 2025)	Change
Pricing outlook	FY 2025	Flat to down ~1%	Flat to up ~1% (tariff pass-through)	Raised
Gross margin	FY 2025	Higher than 2024	Similar to 2024	Lowered
Organic Daily Sales	FY 2025	Low single-digit growth	Low single-digit growth; volume positive; April trending positive	Maintained
Adjusted EBITDA ($)	FY 2025	$400–$430M	$400–$430M (excl. unannounced M&A)	Maintained
Tax rate (effective)	FY 2025	25%–26% (ex-discrete)	25%–26% (ex-discrete)	Maintained
Acquired revenue cadence	FY 2025	Robust pipeline	“Lighter than normal” acquired revenue in 2025 given macro	Lower cadence
Freight costs	FY 2025	Elevated near term	Higher freight persists; some pre-buy impact in Q1	Maintained caution

Earnings Call Themes & Trends

Topic	Q3 2024 (Previous Mentions)	Q4 2024 (Previous Mentions)	Q1 2025 (Current Period)	Trend
Pricing/deflation	Commodity deflation sticky; PVC/grass down double digits; base GM -50 bps	Deflation ~3%; expecting flat to down 1% in 2025	Price down 1%; outlook raised to flat/up 1% on tariffs; PVC ~-21%, grass ~-10%	Improving (neutral to slight tailwind)
Gross margin outlook	Slight down near term; acquisitions help but SG&A higher	Slight improvement expected in 2025	Now “similar to 2024”; freight higher; tariff-driven inventory timing	Tempered
SG&A leverage & focused branches	Plan for closures; Pioneer integration; SG&A discipline	Heavy SG&A actions; closures cost $4.5M; leverage expected in 2025	Base SG&A -3% adjusted; DispatchTrack and branch focus showing progress	Positive
Digital & private label	Digital +170% YTD; small customer penetration	CRM rollout; cadence improving	Digital +140%; private label +30%; stronger small customer gains	Strengthening
Tariffs & supply chain	Tariffs not in guidance; pass-through expected	—	Direct import <1–2%; majority indirect; supplier increases single-digit; categories: irrigation, lighting, drainage	New headwind but manageable
End markets	R&R down high single digit; maintenance steady	2025: flat to slightly down overall; maintenance steady	2025: flat to slightly down; maintenance solid; R&R soft; builders mixed	Stable/soft
Inventory management	Working capital improved; refinancing	Year-end working capital ~$909M	Pre-buys ahead of tariffs; higher inventory; selective categories	Elevated near term
M&A cadence	Robust pipeline; Pioneer dilution near term	7 deals in 2024; 1 in Jan 2025	2 YTD (incl. Green Trade); acquired revenue may be lighter in 2025	Moderating in 2025

Management Commentary

Strategic posture: “We remain confident in our ability to navigate the current market conditions… and deliver superior value… through organic growth, acquisition growth and Adjusted EBITDA margin expansion.” — Doug Black .
Pricing/tariffs: “We currently expect prices to be flat to up 1% for the full year 2025… an increase from our beginning of the year outlook.” — Doug Black .
Gross margin cadence: “Most of the improvement this year… will come on the SG&A leverage line… gross margin… steady for the full year.” — John Guthrie .
SG&A initiatives: “We consolidated or closed 22 locations in 2024… we expect meaningful adjusted EBITDA margin lift… as we improve the performance of these branches.” — Doug Black .
Digital/commercial: “We grew our Digital sales by 140%… customers engaged with us digitally grew significantly faster than those who are not.” — Doug Black .

Q&A Highlights

DispatchTrack & focused branches: Delivery expense reduction underway via central dispatch; SG&A savings from Pioneer and focused branches already visible in base SG&A (-3% adjusted) .
Tariffs mechanics: Direct importing <1–2%; most impact via suppliers (Mexico/China); price increases mostly single-digit and targeted by line; plan to pass through pricing with normal margins .
Q2 trajectory: April positive; low single-digit organic growth feasible; Q2 price likely ~-1% to flat before more tariff-driven increases in 2H .
Gross margin puts/takes: Pass-through pricing positive, but freight pressures and early purchases weigh; full-year gross margin now “similar” to 2024 .
Capital allocation: Preference to invest in M&A/growth first; buybacks opportunistic when excess capital exists and valuation attractive .

Estimates Context

Revenue: Beat consensus ($939.4M vs $933.9M*) driven by acquisitions (+$45.1M), offsetting softer organic demand and pricing . Values retrieved from S&P Global*.
EPS: S&P “Primary EPS (normalized)” beat (-$0.33 vs -$0.44*), while GAAP diluted EPS was -$0.61 due to higher SG&A and lower price realization; note non-GAAP/normalization differences . Values retrieved from S&P Global*.
EBITDA: Adjusted EBITDA beat ($22.4M vs $19.8M*) as SG&A leverage and acquisitions mitigated gross margin pressure . Values retrieved from S&P Global*.
Implication: Consensus likely to adjust up modestly on pricing outlook (flat to +1%), SG&A leverage, and early Q2 demand indicators, but gross margin expectations for FY likely recalibrated to “similar to 2024” (vs prior “up”).

Key Takeaways for Investors

Pricing headwinds easing: Supplier tariff pass-through shifts 2025 pricing outlook to neutral/slight tailwind; expect sequential price improvement through 2H, supporting low single-digit organic growth .
SG&A leverage is the earnings driver in 2025: Focused branch/Pioneer actions and delivery optimization (DispatchTrack) underpin margin expansion even with modest volume .
Gross margin conservatism warranted: Elevated freight and mix effects offset acquisition contributions; full-year GM guided “similar to 2024,” tempering prior optimism .
Acquisition cadence moderating near term: Pipeline robust, but 2025 acquired revenue may be lighter; organic initiatives and private label/digital should carry growth .
Balance sheet/liquidity adequate for strategy: Net debt 1.5x TTM adj. EBITDA with $524M liquidity (cash + ABL) supports inventory pre-buys and M&A optionality .
Near-term setup: April momentum and Q2 low single-digit organic growth potential vs lingering R&R softness; watch tariff developments, freight costs, and Q2 pricing implementation .
Medium-term thesis: Return to double-digit adjusted EBITDA margins over multi-years via SG&A leverage, focused branch turnaround, private label expansion, and digital adoption; management confidence reiterated .

Appendix: Additional Document Citations

Q1 2025 8-K and Exhibit 99.1 press release: key financials, outlook, balance sheet .
Q1 2025 earnings call transcript: operational detail, pricing/tariffs, SG&A initiatives, Q2 trajectory .
Q4 2024 press release/call: prior guidance, seasonality, closures, tax rate .
Q3 2024 call: baseline trends in deflation, segment growth, digital initiatives .

SiteOne Landscape Supply, Inc. (SITE)·Q1 2025 Earnings Summary