SiteOne’s fourth quarter results were met with a significant positive market reaction, reflecting investor approval of the company’s margin expansion and operational improvements despite missing revenue expectations. Management attributed the performance to stronger execution in the maintenance end market, increased sales of private label products, and the benefits realized from recent acquisitions. CEO Doug Black highlighted the company’s focus on driving organic growth and improving branch productivity, noting, “We achieved excellent progress with Pioneer and our other focus branches in 2025, and expect to continue achieving improvements over the next several years as we bring their performance up to the SiteOne average.”
Is now the time to buy SITE? Find out in our full research report (it’s free for active Edge members).
SiteOne (SITE) Q4 CY2025 Highlights:
- Revenue: $1.05 billion vs analyst estimates of $1.06 billion (3.2% year-on-year growth, 0.9% miss)
- Adjusted EPS: -$0.10 vs analyst estimates of -$0.18 (47% beat)
- Adjusted EBITDA: $37.6 million vs analyst estimates of $33.32 million (3.6% margin, 12.9% beat)
- EBITDA guidance for the upcoming financial year 2026 is $440 million at the midpoint, below analyst estimates of $453.3 million
- Operating Margin: -0.5%, up from -2.5% in the same quarter last year
- Organic Revenue rose 2% year on year (miss)
- Market Capitalization: $6.82 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From SiteOne’s Q4 Earnings Call
- David Manthey (Baird) asked about the sustainability of high EBITDA contribution margins on modest organic growth. CEO Doug Black explained that improvements in gross margin and SG&A leverage, particularly from focused branch initiatives, enable outsized profit delivery even as revenue growth remains moderate.
- Ryan Merkel (William Blair) inquired about the outlook for organic growth and market share gains. CEO Doug Black stated that SiteOne expects to continue taking share, especially among small and mid-sized customers, and described the competitive environment as stable but intense.
- Jeffrey Stevenson (Loop Capital Markets) probed operating leverage benefits from branch improvements and potential for further consolidations. Black responded that branch closures have largely run their course for now but productivity improvements and cost discipline will continue driving leverage.
- Elaine Ku (Barclays, for Matt Bouley) asked about private label growth categories and margin impacts. Black highlighted strong performance in agronomics, lighting, hardscapes, and nursery, noting that higher private label penetration delivers significant margin benefits.
- Charles Perron-Piché (Goldman Sachs) focused on the M&A pipeline and benefits of the new distribution center. Black and CFO Eric Elema pointed to active deal discussions and described the new center as enhancing inventory efficiency and supporting private label expansion, despite initial cost headwinds.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be watching (1) the pace of private label growth and its contribution to margin expansion, (2) progress in digital sales penetration and resulting impacts on customer retention and top-line growth, and (3) acquisition activity, particularly the size and strategic fit of new deals in 2026. Additionally, the stabilization of the repair and upgrade market and execution of operational initiatives will be important signposts for sustained margin improvement.
SiteOne currently trades at $153.59, up from $148.78 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
Our Favorite Stocks Right Now
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
