NYSE:SITE
SiteOne Landscape Supply, Inc.
A premier North American distributor of landscape plants and hardscape materials serving professional contractors with a robust retail network.
Key Metrics
Investment Thesis
Bull Case
Investors may favor SITE due to its dominant market position in a defensive sector that benefits from the long-term trend of outdoor living spending and residential landscaping growth. The company's ability to generate strong free cash flow, evidenced by over $300M annual operations cash flow, supports consistent dividend potential or share buybacks to enhance shareholder value. A large moat built on distribution density and customer relationships protects margins against new entrants in the fragmented landscape supply chain.
Bear Case
Concerns persist regarding margin compression from rising input costs and logistical challenges inherent in a perishable goods business model with high working capital requirements. The recent volatility in net income, dropping to $124.4M before recovering, highlights sensitivity to macroeconomic conditions that could dampen discretionary landscaping spending. Significant long-term debt obligations combined with inventory exposure to weather-related losses create downside risk during economic downturns or severe climate events.
About SiteOne Landscape Supply, Inc.
SiteOne Landscape Supply (SITE) is a leading distributor of high-quality plants, trees, hardscape materials, and landscape equipment primarily serving professional landscaping contractors across North America. The company operates through a vast network of retail stores that supply the growing residential and commercial landscaping markets with essential inventory including shrubs, perennials, and construction materials. With consistent revenue growth and strong cash flow generation, SITE provides critical supply chain solutions for the outdoor living industry.
Analysis
Management Discussion
Recent financial performance demonstrates robust operational resilience with revenue reaching $4.70B in 2025, reflecting steady expansion of its distribution footprint. Despite a temporary dip in net income to $124.4M in 2024, the company successfully rebounded to $157.4M profit in 2025, supported by strong operating cash flows of $300.5M and disciplined capital allocation including significant share repurchases. The balance sheet remains healthy with substantial cash reserves of $190.6M, enabling continued investment in growth initiatives and weathering potential economic headwinds.
Industry Overview
The landscape supply industry is cyclical and highly competitive, characterized by seasonal demand patterns driven by residential construction, homeowner renovation trends, and commercial development projects. Success in this sector requires extensive logistics capabilities to manage perishable inventory while maintaining high service levels for professional contractors who rely on just-in-time delivery. Consolidation trends favor larger players who can achieve economies of scale in sourcing, distribution, and store operations.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $4.30B | $4.54B | $4.70B |
| Cost of Revenue | $2.81B | $2.98B | $3.07B |
| Gross Profit | $1.49B | $1.56B | $1.64B |
| Operating Expenses | $1.24B | $1.37B | $1.40B |
| Operating Income | $250.3M | $192.3M | $238.1M |
| G&A | $1.26B | $1.39B | $1.42B |
| Stock-Based Comp | $25.7M | $25.0M | $27.0M |
| Amortization | $62.6M | $61.0M | $55.6M |
| Other OpEx | $-15.7M | $-17.3M | $-18.5M |
| Non-Operating Income | $-27.1M | $-31.9M | $-35.0M |
| Interest Expense | $27.1M | — | — |
| Pre-Tax Income | $223.2M | $160.4M | $203.1M |
| Income Tax | $49.8M | $36.0M | $45.7M |
| Continuing Ops | $173.4M | $124.4M | $157.4M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $173.4M | $124.4M | $157.4M |
| Minority Interest | $0 | $800.0K | $2.0M |
| Net to Common | $173.4M | $123.6M | $155.4M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $1.41B | $1.55B | $1.70B |
| Cash & Equivalents | $82.5M | $107.1M | $190.6M |
| Accounts Receivable | $490.6M | $547.1M | $546.8M |
| Inventory | $771.2M | $827.2M | $876.5M |
| Prepaid Expenses | $61.0M | $55.9M | $62.5M |
| Other Current Assets | $0 | $12.3M | $22.4M |
| Long-Term Assets | $1.42B | $1.52B | $1.52B |
| Intangibles | $280.8M | $261.0M | $220.0M |
| Goodwill | $485.5M | $518.1M | $530.4M |
| Operating Leases | $388.9M | $415.3M | $439.7M |
| Other LT Assets | $268.4M | $326.8M | $330.7M |
| Total Assets | $2.83B | $3.07B | $3.22B |
| Current Liabilities | $578.3M | $640.8M | $686.8M |
| Accounts Payable | $270.8M | $315.5M | $310.8M |
| Current Debt | $5.3M | $4.3M | $3.9M |
| Current Leases | $83.6M | $90.2M | $97.3M |
| Deferred Revenue | $12.4M | $16.3M | $21.0M |
| Taxes Payable | $8.0M | $0 | — |
| Other Current Liab | $83.6M | $84.3M | $116.8M |
| Long-Term Liabilities | $764.5M | $838.1M | $849.6M |
| Long-Term Debt | $367.6M | $383.9M | $381.5M |
| LT Operating Leases | $313.3M | $342.3M | $362.5M |
| Other LT Liab | $83.6M | $111.9M | $105.6M |
| Total Liabilities | $1.34B | $1.48B | $1.54B |
| Shareholders' Equity | $1.49B | $1.59B | $1.68B |
| Paid-In Capital | $601.8M | $626.5M | $658.1M |
| Retained Earnings | $916.3M | $1.04B | $1.19B |
| AOCI | $4.2M | $-6.1M | $-4.9M |
| Total L&E | $2.83B | $3.07B | $3.22B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $173.4M | $124.4M | $157.4M |
| Non-Cash Adjustments | $188.6M | $94.1M | $58.9M |
| Working Capital Changes | $-64.5M | $64.9M | $84.2M |
| Cash from Operations | $297.5M | $283.4M | $300.5M |
| Capital Expenditures | $32.1M | $40.5M | $53.7M |
| Cash from Investing | $-226.0M | $-177.1M | $-83.4M |
| Share Buybacks | $12.0M | $51.3M | $98.3M |
| Cash from Financing | $-18.3M | $-80.9M | $-134.6M |
| FX Effect | $200.0K | $-800.0K | $1.0M |
| Net Change in Cash | $53.4M | $24.6M | $83.5M |
| Beginning Cash | $29.1M | $82.5M | $107.1M |
| Ending Cash | $82.5M | $107.1M | $190.6M |
Frequently Asked Questions
How does SiteOne Landscape Supply, Inc. make money?
The company's revenue is driven by its core distribution of live plants (annuals, perennials, shrubs, and trees), hardscape materials such as stone and pavers, and landscape equipment including mowers and trimmers. Additional streams include value-added services like plant health care programs and specialized retail operations that cater to both residential and commercial landscaping projects.
What are the main risks for SITE?
Fluctuations in raw material costs, particularly fuel prices impacting transportation logistics, can significantly compress gross margins on hardscape and equipment sales. Weather patterns and seasonal climate anomalies pose a direct threat to live plant inventory quality and customer demand timing. Regulatory changes regarding pesticide use or water conservation mandates could impact the core landscaping business model. Intense competition from online retailers and big-box stores may pressure pricing power and market share over time.
What is SITE's competitive advantage?
SiteOne benefits from an extensive proprietary distribution network with hundreds of locations providing unmatched inventory availability and localized service. The company leverages deep industry relationships and a strong brand reputation to secure premium sourcing opportunities and maintain high customer loyalty among professional landscapers. Strong balance sheet management allows for consistent reinvestment in inventory and store infrastructure, creating barriers to entry for competitors.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.