Core Insights - Goodway Group has been selected by SiteOne Landscape Supply as its paid media strategy partner, marking a significant collaboration in the landscape supply industry [1][5] - SiteOne aims to accelerate growth among professional customers across various categories, including hardscapes, agronomics, nursery, irrigation, and lighting [2] - The partnership will focus on creating measurable business outcomes, enhancing brand awareness, and driving revenue growth [2][4] Company Overview - SiteOne Landscape Supply, Inc. is the largest national wholesale distributor of landscape supplies in the United States and has a presence in Canada, serving residential and commercial landscape professionals [6] - Goodway Group is a global marketing services company that specializes in innovative solutions to drive impactful business outcomes for brands [6] Partnership Details - Goodway's engagement will start with strategic onboarding and planning to establish a full-funnel, measurement-driven media program [3] - The agency will integrate media, data, and creative strategies to simplify the customer journey and enhance customer loyalty for SiteOne [3][4] - Goodway's work will include competitive market analysis, budget scenario modeling, and measurement design to ensure effective media investments [4] Strategic Vision - SiteOne's leadership emphasizes the importance of aligning with a partner that can challenge their thinking and create measurable impact [5] - The partnership is seen as a milestone in SiteOne's marketing sophistication journey, aiming to transform media investments into engines of measurable business growth [5]

Core Insights - SITE Centers Corp. reported a net loss of $6.2 million for Q3 2025, a significant decline from a net income of $320.2 million in the same period last year, primarily due to impairments and lower rental income [5][18][19] - The company has sold seven properties year-to-date for a total of $380.9 million and has declared dividends of $5.75 per share [2][5] - The leased rate decreased to 87.6% as of September 30, 2025, down from 91.1% at the end of 2024 [5][18] Financial Performance - Operating funds from operations (OFFO) for Q3 2025 were $5.6 million, or $0.11 per diluted share, compared to $42.8 million, or $0.81 per diluted share in Q3 2024 [5][22] - Rental income for Q3 2025 was reported at $24.2 million, a decrease from $59.4 million in Q3 2024 [18][19] - The company recorded impairments totaling $106.6 million due to changes in hold period assumptions for five wholly-owned assets [5][22] Property Transactions - Notable property sales included Sandy Plains Village for $25 million, Winter Garden Village for $165 million, Deer Valley Towne Center for $33.7 million, and Edgewater Towne Center for $53.5 million [5][13] - The company has over $292 million in properties under contract for sale, with buyers' due diligence conditions expired [2][5] Recent Developments - A special cash distribution of $1.00 per common share was announced, payable on November 14, 2025 [13][27] - The company executed six new leases and 23 renewals for a total of 237,000 square feet during the quarter [5][18]

Core Viewpoint - SITE Centers Corp. announced the sale of Parker Pavilions for approximately $8.4 million, with part of the proceeds used to repay $6.1 million of mortgage debt [1]. Group 1: Company Overview - SITE Centers Corp. is an owner and manager of open-air shopping centers and operates as a self-administered and self-managed REIT [2][5]. - The company is publicly traded on the New York Stock Exchange under the ticker symbol SITC [2]. Group 2: Recent Transactions - The sale of Parker Pavilions was completed prior to closing costs, prorations, and other adjustments [1]. - The company has also announced a special cash distribution of $1.00 per common share, payable on November 14, 2025, to shareholders of record at the close of business on October 31, 2025 [4][5].

Financial Data and Key Metrics Changes - The company achieved 4% net sales growth in Q3 2025, with 3% organic daily sales growth and 11% growth in adjusted EBITDA compared to the prior year [5][14]. - Adjusted EBITDA for the quarter increased 11% to $127.5 million, with an adjusted EBITDA margin improvement of 60 basis points to 10.1% [16][28]. - Net income attributable to the company increased 33% to $59 million due to net sales growth, improved gross margin, and SG&A leverage [27]. Business Line Data and Key Metrics Changes - Organic sales volume grew 2% during Q3, with maintenance-related demand remaining steady and achieving 3% organic daily sales growth in agronomic products [14][25]. - Landscaping products also saw a 3% increase in organic daily sales, driven by sales initiatives and improved pricing [14][25]. - Acquisition sales contributed approximately $13 million or 1% to net sales growth [26]. Market Data and Key Metrics Changes - The company estimates an 18% share of the fragmented $25 billion wholesale landscape products distribution market, indicating significant long-term growth opportunities [8]. - Seven out of nine regions achieved positive organic daily sales growth in Q3, although sales in Sun Belt states like Texas were weaker due to softness in new residential construction [25][41]. Company Strategy and Development Direction - The company aims to leverage its scale and resources to deliver superior value to customers and suppliers while focusing on organic growth and acquisitions [9][10]. - The acquisition strategy is expected to continue filling in product lines and expanding geographic reach, with a focus on smaller companies [13][38]. - The company plans to consolidate or close 15-20 branches to optimize its footprint and cost structure [45]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in driving continued performance and growth despite softer end markets heading into 2026 [6][41]. - The outlook for the fourth quarter includes expectations for low single-digit organic daily sales growth, with continued focus on SG&A leverage and adjusted EBITDA margin expansion [44][45]. - Management noted that the repair and upgrade market has begun to stabilize, providing a more optimistic outlook for future growth [60]. Other Important Information - The company has completed over 100 acquisitions since 2014, adding more than $2 billion in acquired revenue, demonstrating the strength of its acquisition strategy [12]. - The effective tax rate for Q3 was 20.4%, down from 26.2% in the prior year, primarily due to increased excess tax benefits from stock-based compensation [27]. Q&A Session Summary Question: Why is the charge not excluded from adjusted EBITDA guidance? - The company maintains strict guidelines for adjusted EBITDA, which primarily reflect acquisitions and adjustments within the first year [50]. Question: What is the pricing realization in agronomic vs. landscape products? - Pricing for landscape products was up 1%, while agronomic products were flat, with expectations for fourth-quarter pricing between 1% and 2% [51][53]. Question: Are you seeing positive organic sales growth in October? - Yes, positive organic sales growth has been observed in October, although the fourth quarter is a tougher comp due to weather impacts [59]. Question: Any changes in competitor behavior due to demand softness? - The company has not seen unusual competitor behavior, although competition naturally increases in softer markets [67]. Question: Will branch closures affect the ability to serve a recovering market? - The company believes it can fully serve a stronger market with its current network and has the capacity to add associates as needed [70]. Question: What is the outlook for input inflation in commodities? - The company does not anticipate major swings in input inflation for commodities, as this is embedded in their guidance [74]. Question: Will there be a focus on shareholder returns if the M&A market remains soft? - The company is committed to investing in the business first, but being at the low end of the leverage range may lead to increased share repurchases [102].

Financial Data and Key Metrics Changes - The company achieved 4% net sales growth in Q3 2025, with 3% organic daily sales growth and 11% growth in adjusted EBITDA compared to the prior year [5][14]. - Adjusted EBITDA for the quarter increased 11% to $127.5 million, with an adjusted EBITDA margin improvement of 60 basis points to 10.1% [16][28]. - Net income attributable to the company increased 33% to $59 million due to net sales growth, improved gross margin, and SG&A leverage [27]. Business Line Data and Key Metrics Changes - Organic sales volume grew 2% during Q3, with maintenance-related demand remaining steady and achieving 3% organic daily sales growth in agronomic products [14][25]. - Landscaping products also saw a 3% increase in organic daily sales due to sales initiatives and improved pricing [25]. - Acquisition sales contributed approximately $13 million or 1% to net sales growth [26]. Market Data and Key Metrics Changes - The company estimates it holds about an 18% share of the $25 billion wholesale landscape products distribution market, indicating significant long-term growth opportunities [8]. - Seven out of nine regions achieved positive organic daily sales growth in Q3, although sales in Sun Belt states like Texas were weaker due to softness in new residential construction [25][41]. Company Strategy and Development Direction - The company aims to leverage its scale and resources to deliver superior value to customers and suppliers while focusing on organic growth and acquisitions [9][10]. - The acquisition strategy is expected to continue filling in product lines and expanding geographic reach, with six acquisitions completed in 2025 so far [22][38]. - The company plans to consolidate or close 15 to 20 branches to optimize its footprint and cost structure [45]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in driving continued performance and growth despite softer end markets heading into 2026 [6][41]. - The outlook for the fourth quarter includes expectations for low single-digit organic daily sales growth, driven by commercial initiatives and modest price inflation [44][45]. - Management noted that the repair and upgrade market has begun to stabilize, which is a positive sign for future growth [60][44]. Other Important Information - The company has a strong balance sheet with available liquidity of approximately $685 million [30]. - The effective tax rate for Q3 was 20.4%, down from 26.2% in the prior year, primarily due to increased excess tax benefits from stock-based compensation [27]. - The company has repurchased approximately 656,000 shares for a total of approximately $78 million year to date, reflecting a commitment to disciplined capital allocation [28]. Q&A Session Summary Question: Why is the charge not excluded from adjusted EBITDA guidance? - The company maintains strict guidelines for adjusted EBITDA, which primarily reflect acquisitions and adjustments within the first year [50]. Question: What is the pricing outlook for agronomic versus landscape products? - Pricing for landscape products was up 1%, while agronomic products were flat. The expectation for Q4 pricing is between 1% and 2% [51][53]. Question: Are you seeing positive organic sales growth in October? - Yes, positive organic sales growth is being observed in October, although the fourth quarter is a tougher comp due to weather impacts [59]. Question: How is the competitive landscape changing? - The company has not seen unusual changes in competitor behavior, although competition naturally increases in softer markets [68]. Question: Will branch closures affect the ability to serve a recovering market? - The company believes it can fully serve a stronger market with its current network and has the capacity to add associates as needed [73]. Question: What is the outlook for SG&A improvements? - The company expects to continue achieving SG&A leverage improvements through the rest of the year [93]. Question: How does the company view the M&A landscape moving forward? - The company anticipates a higher acquisition activity in 2026 compared to 2025, focusing on well-run companies rather than turnaround opportunities [86][88].

Financial Data and Key Metrics Changes - The company achieved 4% net sales growth, with 3% organic daily sales growth and 11% growth in adjusted EBITDA compared to the prior year period [4][12]. - Adjusted EBITDA for the quarter increased 11% to $127.5 million, and adjusted EBITDA margin improved 60 basis points to 10.1% due to higher net sales, improved gross margin, and increased SG&A leverage [16][29]. - Net income attributable to the company increased 33% to $59 million due to net sales growth, improved gross margin, and SG&A leverage [28]. Business Line Data and Key Metrics Changes - Organic sales volume grew 2% during the third quarter, with agronomic products and landscaping products both achieving 3% organic daily sales growth [13][26]. - Pricing for landscaping products was up 1%, while agronomic products were flat, reflecting a recovery from previous deflation [66]. - Acquisition sales contributed approximately $13 million or 1% to net sales growth [27]. Market Data and Key Metrics Changes - The company estimates it holds about an 18% share of the $25 billion wholesale landscape products distribution market, indicating significant growth potential [6]. - The residential new construction end market was down during the quarter, particularly in Texas, Florida, Arizona, and California, while the repair and upgrade market showed signs of stabilization [13][55]. - Seven out of nine regions achieved positive organic daily sales growth in the third quarter, despite weaker sales in the Sun Belt states [26]. Company Strategy and Development Direction - The company aims to leverage its scale and resources to deliver superior value to customers and suppliers, focusing on organic growth and acquisitions to fill product lines [7][9]. - The acquisition strategy remains a key focus, with four companies added in 2025, contributing approximately $40 million in trailing 12-month sales [21][38]. - Plans to consolidate or close 15 to 20 branches in 2026 are in place to optimize operations and reduce costs [21][58]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to drive continued performance and growth despite softer end markets heading into 2026 [5][55]. - The outlook for the fourth quarter includes expectations for low single-digit organic daily sales growth, driven by positive pricing and commercial initiatives [57]. - Management noted that while the repair and upgrade market has been down, it appears to be stabilizing, providing a foundation for future growth [56]. Other Important Information - The effective tax rate for the third quarter was 20.4%, a decrease from 26.2% in the prior year period, primarily due to increased excess tax benefits from stock-based compensation [28]. - The company has repurchased approximately 656,000 shares for a total of approximately $78 million at an average price of approximately $118 per share year to date [29][31]. - The company plans to maintain financial strength and flexibility to execute its growth strategy in all market environments [31]. Q&A Session Summary Question: Why is the charge not excluded from adjusted EBITDA guidance? - The company maintains strict guidelines regarding adjusted EBITDA, which primarily reflect acquisitions and adjustments within the first year [65]. Question: What is the pricing outlook for agronomic versus landscape products? - Pricing for landscape products was up 1%, while agronomic products were flat. The expectation for the fourth quarter is a price increase between 1% and 2% [66]. Question: Are there signs of stabilization in the repair and upgrade market? - Management noted that discussions with customers indicate stabilization in the repair and upgrade market, with a more optimistic outlook than three months ago [72]. Question: How does the company plan to manage SG&A in the fourth quarter? - The company expects to achieve good SG&A leverage in the fourth quarter, with continued focus on productivity improvements [74]. Question: What is the company's approach to acquisitions moving forward? - The company expects to see a higher number of acquisitions in 2026 compared to 2025, focusing on well-run companies rather than turnaround opportunities [92].

分组1 - SiteOne Landscape reported quarterly earnings of $1.31 per share, exceeding the Zacks Consensus Estimate of $1.22 per share, and up from $0.97 per share a year ago, representing an earnings surprise of +7.38% [1] - The company posted revenues of $1.26 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.93%, and up from $1.21 billion year-over-year [2] - SiteOne Landscape has surpassed consensus revenue estimates three times over the last four quarters [2] 分组2 - The stock has underperformed the market, losing about 6.5% since the beginning of the year compared to the S&P 500's gain of 17.2% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.17 on revenues of $1.06 billion, and for the current fiscal year, it is $3.34 on revenues of $4.7 billion [7] - The Zacks Industry Rank indicates that the Industrial Services sector is in the bottom 26% of over 250 Zacks industries, suggesting potential challenges for the stock's performance [8]

Third Quarter 2025 Financial Performance - Net sales increased by 4% to $1,258.2 million compared to the third quarter of 2024[25, 27, 28] - Organic Daily Sales increased by 3% due to sales initiatives and improved pricing[25, 30] - Gross profit increased by 6% to $437.2 million, with gross margin improving 70 basis points to 34.7%[25, 27, 28, 30] - Adjusted EBITDA increased by 11% to $127.5 million, and the margin improved 60 basis points to 10.1%[25, 27, 29] - Net income attributable to SiteOne increased 33% to $59.1 million[25, 27, 30] Balance Sheet and Cash Flow - Cash provided by operating activities increased by $12.7 million to $128.6 million[25, 31] - Net debt was $422.5 million, compared to $449.3 million in the prior-year period[31] - The leverage ratio (Net debt / Adjusted EBITDA) was 1.0x, compared to 1.2x in the prior-year period[31] Acquisitions and Growth Strategy - Acquired sales contributed $12.5 million, representing 1% of the overall growth rate[30] - The company completed acquisitions of Grove Nursery, Nashville Nursery, and Autumn Ridge Stone during the quarter and acquired Red's Home & Garden after the quarter ended[25] - Full year Adjusted EBITDA is expected to be $405 million to $415 million, including a branch consolidation and closure charge of approximately $4 million to $6 million[48]

Financial Performance - Net sales for Q3 2025 increased to $1,258.2 million, a 4% rise compared to $1,208.8 million in Q3 2024[4] - Gross profit increased by 6% to $437.2 million, with gross margin improving by 70 basis points to 34.7%[5] - Net income attributable to SiteOne rose by 33% to $59.1 million, up from $44.4 million in the prior year[8] - Adjusted EBITDA for Q3 2025 increased by 11% to $127.5 million, with an Adjusted EBITDA margin improvement of 60 basis points to 10.1%[8] - Net sales for the three months ended September 28, 2025, were $1,258.2 million, an increase from $1,208.8 million for the same period in 2024, representing a growth of 4.1%[25] - Gross profit for the nine months ended September 28, 2025, was $1,278.4 million, compared to $1,222.5 million for the same period in 2024, reflecting an increase of 4.6%[25] - Net income attributable to SiteOne for the three months ended September 28, 2025, was $59.1 million, up from $44.4 million in the same period of 2024, marking a growth of 33.5%[25] - Operating income for the nine months ended September 28, 2025, was $243.1 million, compared to $217.2 million for the same period in 2024, an increase of 11.9%[25] - Basic net income per common share for the three months ended September 28, 2025, was $1.32, compared to $0.98 for the same period in 2024, reflecting a growth of 34.7%[25] Acquisitions and Growth - The company completed six acquisitions year-to-date, contributing $12.5 million, or 1%, to net sales growth[4] - The company made acquisitions totaling $18.4 million during the nine months ended September 28, 2025, compared to $110.4 million in the same period of 2024[27] - The contribution from acquisitions to net sales in Q3 2025 was $54.4 million, compared to $67.6 million in Q2 2025[32] Debt and Cash Management - Net debt decreased to $422.5 million from $449.3 million year-over-year, with a net debt to Adjusted EBITDA ratio of 1.0 times[9] - Cash and cash equivalents at the end of the period were $106.9 million, slightly down from $107.1 million at the end of December 29, 2024[23] - The company reported a net cash provided by operating activities of $135.7 million for the nine months ended September 28, 2025, down from $164.0 million for the same period in 2024[27] Sales and Market Outlook - Organic Daily Sales grew by 3% year-over-year, driven by sales initiatives and improved pricing[4] - The outlook for Q4 2025 anticipates low single-digit Organic Daily Sales growth, with pricing expected to rise by 1% to 2%[11] Expenses and Financial Ratios - SG&A expenses as a percentage of net sales decreased by 50 basis points to 28.4%[6] - Interest expense for Q3 2025 was $9.1 million, slightly lower than $10.3 million in Q2 2025[29] - Depreciation and amortization expenses remained stable at approximately $35.4 million for both Q3 and Q2 2025[29] - The company reported a tax expense of $15.5 million in Q3 2025, down from $45.0 million in Q2 2025[29] Future Plans - The company plans to continue focusing on market expansion and new product development in the upcoming quarters[34]

Financial Performance - Net sales grew by 4% for the three and nine months ended September 28, 2025, driven by sales initiatives and improved pricing[129] - Organic Daily Sales increased by 3% and 1% for the three and nine months ended September 28, 2025, respectively[129] - Net sales for the three months ended September 28, 2025 increased by 4% to $1,258.2 million compared to $1,208.8 million for the same period in 2024, and for the nine months ended September 28, 2025, net sales increased by 4% to $3,659.2 million compared to $3,527.5 million in 2024[154] - Acquisitions contributed $12.5 million, or 1%, to net sales growth for the third quarter of 2025 and $98.5 million, or 3%, for the nine months ended September 28, 2025[154] - The company anticipates continued pressure on net sales growth and net income due to ongoing economic uncertainty and weakened consumer confidence[129] Profitability - Gross margin increased by 70 basis points in the third quarter and by 20 basis points for the nine-month period ended September 28, 2025[129] - Net income attributable to SiteOne increased to $59.1 million and $160.8 million for the three and nine months ended September 28, 2025, respectively[129] - Gross profit increased by 6% to $437.2 million for the three months ended September 28, 2025, compared to $411.0 million for the same period in 2024, and increased by 5% to $1,278.4 million for the nine months ended September 28, 2025, compared to $1,222.5 million in 2024[157] - Adjusted EBITDA for Q3 2025 was $127.5 million, representing a significant measure of operating performance[168] - The increase in net income attributable to non-controlling interest was $0.2 million to $0.4 million for Q3 2025 compared to Q3 2024, driven by higher net income from the Devil Mountain business[163] Expenses - Selling, general and administrative expenses (SG&A) as a percentage of net sales decreased by 50 basis points to 28.4% for the three months ended September 28, 2025[129] - Selling, general and administrative (SG&A) expenses increased 2% to $357.4 million for Q3 2025 compared to $349.1 million for Q3 2024, and increased 3% to $1,049.7 million for the nine months ended September 28, 2025 compared to $1,020.6 million for the same period in 2024[158] - SG&A as a percentage of net sales decreased by 50 basis points to 28.4% for Q3 2025 compared to 28.9% for Q3 2024, and decreased by 20 basis points to 28.7% for the nine months ended September 28, 2025 compared to 28.9% for the same period in 2024[158] Cash Flow and Working Capital - Net cash provided by operating activities decreased to $135.7 million for the nine months ended September 28, 2025, compared to $164.0 million for the same period last year[129] - Working capital increased to $1,059.0 million as of September 28, 2025, up by $150.2 million from $908.8 million as of December 29, 2024[181] - Cash provided by operating activities was $135.7 million for the nine months ended September 28, 2025, down from $164.0 million for the same period in 2024[183] - Cash used in investing activities was $53.4 million for the nine months ended September 28, 2025, significantly lower than $140.3 million in the same period of 2024[184] Debt and Financing - Total gross long-term debt was $392.8 million as of September 28, 2025, comparable to $393.3 million as of December 29, 2024[181] - Interest on long-term debt decreased to $109.0 million as of September 28, 2025, down from $131.2 million as of December 29, 2024[181] - The company repurchased 656,095 shares for approximately $77.7 million at an average price of $118.46 during the 2025 Fiscal Year[179] - The borrowing base capacity under the ABL Facility was $577.8 million as of September 28, 2025[180] - The ABL Facility has a commitment of up to $600.0 million, with a maturity date of July 22, 2027, and is secured by a first lien on inventory and receivables[192] Strategic Initiatives - The company has a large acquisition pipeline and remains committed to driving growth organically and through acquisitions[130] - The company is focused on strategic initiatives to improve profitability, enhance supply chain efficiency, and invest in information technology systems and data analytics[148] - The company continues to implement new inventory planning and transportation management system functionalities to reduce costs and improve service reliability[148] Market Outlook - The long-term outlook for the landscape supply industry remains strong, driven by favorable population trends and continued interest in outdoor living[130] - The negative pricing trend that began in the second half of the 2023 Fiscal Year has moderated, with pricing projected to increase by approximately 1% to 2% for the fourth quarter of 2025[129] Tax and Accounting - Income tax expense was $15.5 million for Q3 2025 compared to $15.8 million for Q3 2024, with an effective tax rate of 20.4% for Q3 2025 compared to 26.2% for Q3 2024[161] - The company recognized excess tax benefits of $4.0 million for Q3 2025 compared to $0.1 million for Q3 2024, contributing to the decrease in the effective tax rate[161] - The company has critical accounting estimates related to inventory valuation, acquisitions, and goodwill, with no material changes reported[210]