SiteOne Q1 sales miss estimates, co sees weather impact

Overview

• US landscape supply distributor's Q1 sales missed analyst expectations, organic daily sales fell 1%

• Adjusted EBITDA for Q1 rose 14% and beat analyst expectations

• Company completed two acquisitions and repurchased $20 mln in shares

Outlook

• SiteOne expects 2026 prices to increase 2% to 3% for the full year

• Company expects overall end market demand to be down modestly for full year 2026

• SiteOne maintains 2026 Adjusted EBITDA guidance at $425 mln to $455 mln

Result Drivers

• WEATHER IMPACT - Co said unfavorable weather across several regions led to lower sales volumes and a 1% decline in organic daily sales

• PRICING AND MARGIN - Gross margin improved due to higher price realization and commercial initiatives, partially offset by freight and commodity deflation

• ACQUISITIONS - Acquisitions contributed $12.4 mln to net sales growth for the quarter

Company press release: ID:nBw6SXxx5a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the diversified industrial goods wholesale peer group is "buy"

• Wall Street's median 12-month price target for SiteOne Landscape Supply Inc is $167.00, about 16.8% above its April 28 closing price of $142.94

• The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 29 three months ago

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