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].