SiteOne Landscape Supply (NYSE: SITE) reported Q3 EPS of $1.31, $0.03 better than the analyst estimate of $1.28. Revenue for the quarter came in at $1.26 billion versus the consensus estimate of $1.26 billion.

Outlook

“We expect the end market demand in new residential construction (21% of sales) and repair and upgrade (30% of sales) to continue to be soft during the remainder of the year, though we are seeing some stabilization in the latter. The maintenance end market (35% of sales) should continue to grow modestly, and we expect new commercial construction demand (14% of sales) to be flat. We expect pricing, which was up 1% in the third quarter, to be up 1% to 2% in the fourth quarter as commodity price deflation continues to dissipate,” Black continued. “With the benefit of our commercial initiatives, we expect sales volume to be modestly positive, yielding low single-digit Organic Daily Sales growth for the fourth quarter. With strong cost control, focus branch improvement, improved price realization, and contributions from acquisitions, we remain on track to expand our Adjusted EBITDA margin for the full year 2025.”

To proactively address the potential for continued soft market conditions and to further optimize our footprint and cost structure, we plan to consolidate or close additional branches in the fourth quarter and incur a corresponding charge to Adjusted EBITDA of approximately $4 million to $6 million. We expect to retain most of the sales from these branches.

Given these trends and including the anticipated fourth quarter charge, we now expect our full year Adjusted EBITDA to be in the range of $405 million to $415 million. Our guidance does not include any contributions from unannounced acquisitions.

Reconciliation for the forward-looking full year 2025 Adjusted EBITDA outlook is not being provided, as the Company does not currently have sufficient data to accurately estimate the variables and individual adjustments for such reconciliation.

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