SiteOne Raises Buyback Authorization After EBITDA Growth

The Tip Desk · November 2, 2026 · 4 min read

Adjusted EBITDA rose 8% to $138.3 million in the third quarter as the board later added $500 million to the repurchase program.

SiteOne Landscape Supply, Inc. (SITE), the nationwide wholesale distributor of landscape supplies, reported Adjusted EBITDA of $138.3 million for the third quarter ended September 27, 2026, up 8% from $127.5 million a year earlier, with the margin improving 60 basis points to 10.7%.

Adjusted EBITDA growth accelerated to 8% from 5%, while its margin expanded 60 basis points after being flat in the second quarter. Gross-margin expansion also accelerated, widening 80 basis points in the third quarter after a 50-basis-point expansion in the second.

Net sales increased 3% to $1,291.1 million, compared with $1,258.2 million in the year-ago quarter. Organic Daily Sales decreased 1%, reversing a 1% year-over-year increase in the second quarter. The company said lower sales volume amid continued softness in underlying market demand and a delay in fall applications due to hot and dry weather more than offset higher price inflation. Acquisitions contributed $39.7 million, or 3%, to net sales growth. SiteOne acquired Patterson Nursery Sales during the quarter.

Gross profit increased 5% to $458.5 million. Gross margin expanded 80 basis points to 35.5%, which the company attributed primarily to strong price realization, including fuel surcharges, and continued benefits from commercial initiatives. Pricing was up 4% in the quarter, and the company said it expects that pace to continue through the remainder of the year.

Selling, general and administrative expenses rose to $368.7 million from $357.4 million. SG&A as a percentage of net sales increased 20 basis points to 28.6%, due primarily to higher fuel and healthcare cost and lower sales volume, partially offset by operational initiatives and cost control. Net income attributable to SiteOne increased 8% to $63.9 million, or $1.46 a share, from $59.1 million, or $1.31 a share, a year earlier.

Cash provided by operating activities decreased $3.0 million to $125.6 million. Net debt was $522.6 million as of September 27, 2026, compared with $422.5 million a year earlier. Net debt to trailing-twelve-month Adjusted EBITDA was 1.2 times, compared with 1.0 times. Cash and cash equivalents were $88.4 million, and available capacity under the ABL facility was $478.0 million.

SiteOne repurchased $62.2 million of shares under the existing authorization. Subsequent to quarter-end, the board approved a $500.0 million increase, bringing aggregate authorization to approximately $538.3 million, inclusive of about $38.3 million remaining under the prior $400.0 million program. The updated authorization has no expiration date. Chairman and CEO Doug Black said the company remains focused on disciplined capital allocation, balancing opportunistic share repurchases with investment in organic growth and acquisitions.

Black said the company delivered 8% growth in Adjusted EBITDA and 60 basis points of margin expansion despite continued softness in underlying market demand and a delayed fall season. He said end markets continue to be challenging, with declines in new residential construction and repair and upgrade more than offsetting more resilient maintenance and new commercial construction.

The company said it is currently achieving positive Organic Daily Sales growth of approximately 2% in October and expects Organic Daily Sales of flat to up 1% for the four-month period of July through October. Given ongoing macroeconomic uncertainty, high interest rates, and inflation, it expects end-market softness to continue through the full year. With the negative impact of the 53rd week, it expects full-year Organic Daily Sales to be flat to down 1%. The extra week in December is expected to reduce full-year Organic Daily Sales growth by approximately 80 basis points and Adjusted EBITDA by approximately $4 million to $5 million.

SiteOne plans to reduce its workforce and consolidate or close branches in the fourth quarter and incur a corresponding charge to Adjusted EBITDA of approximately $6 million to $8 million. It expects SG&A as a percentage of net sales to be up for the full year. Despite that charge and the 53rd week, the company expects to expand Adjusted EBITDA margin slightly in 2026 and expects Adjusted EBITDA for fiscal year 2026 to be in the range of $425 million to $440 million. Guidance does not include contributions from unannounced acquisitions.