Q4 2025 SiteOne Landscape Supply Inc Earnings Call

February 11, 2026

Speaker #1: Greetings and welcome to SiteOne Landscape Supply Q4, 2025 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation.

Operator: Greetings, and welcome to SiteOne Landscape Supply, Inc. Fourth Quarter 2025 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Eric Elema, Chief Financial Officer. Thank you. Please begin.

Speaker #1: If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded.

Speaker #1: It is now my pleasure to introduce your host, Eric Elema, Chief Financial Officer. Thank you. Please.

Speaker #1: begin. Thank you and good morning,

Eric Elema: Thank you, and good morning, everyone. We issued our fourth quarter and full year 2025 earnings press release this morning and posted a slide presentation to the investor relations portion of our website at investors.siteone.com. I am joined today by Doug Black, our Chairman and Chief Executive Officer, and Scott Salmon, EVP, Strategy and Development. Before we begin, I would like to remind everyone that today's press release, slide presentation, and the statements made during this call include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and projections. Such risks and uncertainties include the factors set forth in the earnings release and in our filings with the Securities and Exchange Commission.

Speaker #2: everyone. We issued our fourth quarter and full year 2025 earnings press release this morning. And posted a slide presentation to the investor relations portion of our website.

Speaker #2: And investors.siteone.com. I am joined today by Doug Black, our Chairman and Chief Executive Officer, and Scott Salmon, EVP Strategy and Development. Before we begin, I would like to remind everyone that today's press release, slide presentation, and the statements made during this call.

Speaker #2: Include forward-looking statements securities litigation reform within the meaning of the private act of 1995. These statements are subject to risk and uncertainties that could cause actual results to differ materially from our expectations and projections.

Eric Elema: These statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and projections. Such risks and uncertainties include the factors set forth in the earnings release and in our filings with the Securities and Exchange Commission.

Speaker #2: Such risks and uncertainties include the factors set forth in the earnings release and in our filings with the Securities and Exchange Commission. Additionally, during today's call, we will discuss non-GAAP measures, which we believe can be useful in evaluating our performance.

Eric Elema: Additionally, during today's call, we will discuss non-GAAP measures, which we believe can be useful in evaluating our performance. A reconciliation of these measures can be found in our earnings release and in the slide presentation. I would now like to turn the call over to Doug Black.

Speaker #2: A reconciliation of these measures can be found in our earnings release and in the slide presentation. I would now like to turn the call over to Doug

Speaker #2: Black. Thanks, Eric.

Doug Black: Thanks, Eric. Good morning, and thank you for joining us today. We are pleased to deliver solid results in the fourth quarter, with 3% net sales growth, 2% organic daily sales growth, and 18% growth in Adjusted EBITDA versus the prior year period, closing out a good year of performance and growth in 2025. For the full year of 2025, we achieved 4% net sales growth, 1% organic daily sales growth, and 10% growth in Adjusted EBITDA, despite flat pricing and lower end market demand compared to 2024. As we enter 2026, we have solid momentum with the benefit of positive pricing, coupled with the strong cost reduction actions that we took in 2025, including 20 branch consolidations and closures during the fourth quarter....

Speaker #3: Good morning and thank you for joining us today. We're pleased to deliver solid results in the fourth quarter with 3% net sales growth, 2% organic daily sales growth, and 18% growth in adjusted EBITDA versus the prior year period, closing out a good year of performance and growth in 2025.

Speaker #3: For the full year of 2025, we achieved 4% net sales growth, 1% organic daily sales growth, and 10% growth in adjusted EBITDA, despite flat pricing and lower end market demand compared to 2024.

Speaker #3: As we enter 2026, we have solid momentum with the benefit of positive pricing coupled with the strong cost reduction actions that we took in 2025, including 20-branch consolidations and closures during the fourth quarter.

Doug Black: we have solid momentum with the benefit of positive pricing, coupled with the strong cost reduction actions that we took in 2025, including 20 branch consolidations and closures during the fourth quarter....

Speaker #3: Our teams are executing our commercial and operational initiatives at a high level, and we expect to benefit from the eight acquisitions that we completed in 2025, along with our first acquisition completed in 2026.

Doug Black: Our teams are executing our commercial and operational initiatives at a high level, and we expect to benefit from the 8 acquisitions that we completed in 2025, along with our first acquisition completed in 2026. While there continues to be end market uncertainty, we enter 2026 with stronger teams, a more cost-effective branch network, good momentum with our commercial and operational initiatives, and a robust pipeline of potential acquisitions. Accordingly, we remain confident in our ability to deliver superior value to our customers and suppliers, and achieve solid performance and growth for our shareholders in 2026 and in the years to come. I will start today's call with a brief review of our unique market position and our strategy, followed by highlights from 2025.

Speaker #3: While there continues to be end market uncertainty, we enter 2026 with stronger teams, a more cost-effective branch network, good momentum with our commercial and operational initiatives, and a robust pipeline of potential acquisitions.

Speaker #3: Accordingly, we remain confident in our ability to deliver superior value to our customers and suppliers, and achieve solid performance and growth for our shareholders in 2026 and in the years to come.

Doug Black: and achieve solid performance and growth for our shareholders in 2026 and in the years to come. I will start today's call with a brief review of our unique market position and our strategy, followed by highlights from 2025.

Speaker #3: I will start today's call with a brief review of our unique market position and our strategy, followed by highlights from 2025. Eric Elema, who was recently appointed Chief Financial Officer, will then walk you through our fourth quarter and full year financial results in more detail.

Doug Black: Eric Elema, who was recently appointed Chief Financial Officer, will then walk you through our Q4 and full-year financial results in more detail and provide an update on our balance sheet and liquidity position. Scott Salmon will discuss our acquisition strategy, and then I will come back to address our outlook and guidance for 2026 before taking your questions. As shown on slide 4 of the earnings presentation, we have a strong footprint of more than 670 branches and five distribution centers across 45 US states and five Canadian provinces. We are the clear industry leader, approximately three times the size of our nearest competitor, yet we estimate that we only have about a 19% share of the very fragmented, $25 billion wholesale landscaping products distribution market. Accordingly, our long-term opportunity to grow and gain market share remains significant.

Speaker #3: And provide an update on our balance sheet and liquidity position. Scott Salmon will discuss our acquisition strategy, and then I will come back to address our outlook and guidance for 2026 before taking your questions.

Speaker #3: As shown on slide four of the earnings presentation, we have a strong footprint of more than 670 branches and five distribution centers across 45 U.S. states and five Canadian provinces.

Doug Black: We are the clear industry leader, approximately three times the size of our nearest competitor, yet we estimate that we only have about a 19% share of the very fragmented, $25 billion wholesale landscaping products distribution market. Accordingly, our long-term opportunity to grow and gain market share remains significant.

Speaker #3: We are the clear industry leader, with approximately three times the size of our nearest competitor. Yet we estimate that we only have about a 19% share of the very fragmented $25 billion wholesale landscaping products distribution market.

Speaker #3: Accordingly, our long-term opportunity to grow and gain market share remains significant. We have a balanced mix of business, with 66% focused on maintenance, repair, and upgrade; 20% focused on new residential construction; and 14% on new commercial and recreational construction.

Doug Black: We have a balanced mix of business, with 66% focused on maintenance, repair, and upgrade, 20% focused on new residential construction, and 14% on new commercial and recreational construction. As the only national full-product line wholesale distributor in the market, we also have an excellent balance across our product lines as well as geographically. Our strategy to fill in our product lines across the US and Canada, both organically and through acquisition, further strengthens this balance over time. Overall, our end market mix, broad product portfolio, and geographic coverage offer us multiple avenues to grow and create value for our customers and suppliers, while providing important resilience in softer markets.

Speaker #3: As the only national full product line wholesale distributor in the market, we also have an excellent balance across our product lines as well as geographically.

Speaker #3: Our strategy to fill in our product lines across the US and Canada both organically and through acquisition further strengthens this balance over time. Overall, our end market mix, broad product portfolio, and geographic coverage offer us multiple avenues to grow and create value for our customers and suppliers.

Doug Black: Overall, our end market mix, broad product portfolio, and geographic coverage offer us multiple avenues to grow and create value for our customers and suppliers, while providing important resilience in softer markets.

Speaker #3: While providing important resilience in softer markets. Turning to slide five, our strategy is to leverage the scale, resources, functional talent, and capabilities that we have as the largest company in our industry all in support of our talented, experienced, and entrepreneurial local teams.

Doug Black: Turning to slide five, our strategy is to leverage the scale, resources, functional talent, and capabilities that we have as the largest company in our industry, all in support of our talented, experienced, and entrepreneurial local teams, to consistently deliver superior value to our customers and suppliers. We've come a long way in building SiteOne and executing our strategy, but have more work to do as we develop into a world-class company. Current challenging market conditions require us to adopt new processes and technologies faster and to be even more intentional in driving organic growth, improving our productivity, and mastering the unique aspects of each of our product lines. Accordingly, we remain highly focused on our commercial and operational initiatives to overcome near-term headwinds, but more importantly, to build a long-term competitive advantage for all our stakeholders.

Speaker #3: We consistently deliver superior value to our customers and suppliers. We have come a long way in building SiteOne and executing our strategy but have more work to do as we develop into a world-class company.

Doug Black: Current challenging market conditions require us to adopt new processes and technologies faster and to be even more intentional in driving organic growth, improving our productivity, and mastering the unique aspects of each of our product lines. Accordingly, we remain highly focused on our commercial and operational initiatives to overcome near-term headwinds, but more importantly, to build a long-term competitive advantage for all our stakeholders.

Speaker #3: Current challenging market conditions require us to adopt new processes and technologies faster and to be even more intentional in driving organic growth, improving our productivity, and mastering the unique aspects of each of our product lines.

Speaker #3: Accordingly, we remain highly focused on our commercial and operational initiatives to overcome near-term headwinds but, more importantly, to build a long-term competitive advantage for all our stakeholders.

Speaker #3: These initiatives are complemented by our acquisition strategy which fills in our product portfolio moves us into new geographic markets, and adds terrific new talent to SiteOne.

Doug Black: These initiatives are complemented by our acquisition strategy, which fills in our product portfolio, moves us into new geographic markets, and adds terrific new talent to SiteOne. Taken all together, we expect our strategy to create superior value for our shareholders through organic growth, acquisition growth, and Adjusted EBITDA margin expansion. On slide 6, you can see our strong track record of performance and growth over the last 10 years, with consistent organic and acquisition growth. From an Adjusted EBITDA margin perspective, we benefited from the extraordinary price realization due to rapid inflation in commodity products during 2021 and 2022. In 2023 and 2024, we experienced significant headwinds as commodity prices came down.

Speaker #3: Taken all together, we expect our strategy to create superior value for our shareholders through organic growth, acquisition growth, and EBITDA margin expansion. On slide six, you can see our strong track record of performance and growth over the last 10 years, with consistent organic and acquisition growth.

Speaker #3: From an adjusted EBITDA margin perspective, we benefited from the extraordinary price realization due to rapid inflation in commodity products during 2021 and 2022. In 2023 and 2024, we experienced significant headwinds as commodity prices came down.

Doug Black: From an Adjusted EBITDA margin perspective, we benefited from the extraordinary price realization due to rapid inflation in commodity products during 2021 and 2022. In 2023 and 2024, we experienced significant headwinds as commodity prices came down.

Speaker #3: In 2024, we also experienced further adjusted EBITDA dilution from the acquisition of Pioneer, a large turnaround opportunity with great strategic fit, and from our other focus branches, which resulted from the post-COVID market headwinds.

Doug Black: In 2024, we also experienced further Adjusted EBITDA dilution from the acquisition of Pioneer, a large turnaround opportunity with great strategic fit, and from our other focus branches, which resulted from the post-COVID market headwinds. Over the past two years, our pricing transitioned from -3% in 2024 to flat in 2025, and we anticipate that pricing will be up 1% to 3% in 2026. Furthermore, we achieved excellent progress with Pioneer and our other focus branches in 2025, and expect to continue achieving improvements over the next several years as we bring their performance up to the SiteOne average. In summary, we expect to drive continued Adjusted EBITDA margin improvement in 2026 and beyond as we execute our initiatives and as the market headwinds slowly turn to tailwinds.

Speaker #3: Over the past two years, our pricing transitioned from negative 3% in 2024 to flat in 2025. And we anticipate that pricing will be up 1% to 3% in 2026.

Speaker #3: Furthermore, we achieved excellent progress with Pioneer and our other focus branches in 2025, and expect to continue achieving improvements over the next several years as we bring their performance up to the SiteOne average.

Doug Black: In summary, we expect to drive continued Adjusted EBITDA margin improvement in 2026 and beyond as we execute our initiatives and as the market headwinds slowly turn to tailwinds.

Speaker #3: In summary, we expect to drive continued adjusted EBITDA margin improvement in 2026 and beyond as we execute our initiatives and as the market headwinds slowly turn to tailwinds.

Speaker #3: We have now completed 107 acquisitions across all product lines since the start of 2014, adding approximately $2.1 billion in trailing 12-month sales to SiteOne.

Doug Black: We've now completed 107 acquisitions across all product lines since the start of 2014, adding approximately $2.1 billion in trailing twelve-month sales to SiteOne, which demonstrates the strength and durability of our acquisition strategy. These companies expand our product line capabilities and strengthen SiteOne with excellent talent and new ideas for performance and growth. Our pipeline of potential deals remains robust, and we expect to continue adding and integrating more companies in 2026 to support our growth. Given the fragmented nature of our industry and our current market share, we believe that we have a significant opportunity to continue growing through acquisition for many years to come. Slide 7 shows the long runway we have ahead in filling in our product portfolio, which we aim to do primarily through acquisition, especially in the nursery, hardscape, and landscape supplies categories.

Speaker #3: Which demonstrates the strength and durability of our acquisition strategy. These companies expand our product line capabilities and strengthen SiteOne with excellent talent and new ideas for performance and growth.

Speaker #3: Our pipeline of potential deals remains robust, and we expect to continue adding and integrating more companies in 2026 to support our growth. Given the fragmented nature of our industry and our current market share, we believe that we have a significant opportunity to continue growing through acquisition for many years to come.

Doug Black: Given the fragmented nature of our industry and our current market share, we believe that we have a significant opportunity to continue growing through acquisition for many years to come. Slide 7 shows the long runway we have ahead in filling in our product portfolio, which we aim to do primarily through acquisition, especially in the nursery, hardscape, and landscape supplies categories.

Speaker #3: Slide seven shows the long runway we have ahead in filling in our product portfolio, which we aim to do primarily through acquisition, especially in the nursery, hardscapes, and landscape supplies categories.

Speaker #3: We are well connected with the best companies in our industry and expect to continue filling in these markets systematically over the next decade. I will now discuss some of our full-year 2025 performance highlights as shown on slide eight.

Doug Black: We're well connected with the best companies in our industry and expect to continue filling in these markets systematically over the next decade. I will now discuss some of our full year 2025 performance highlights, as shown on Slide 8. We achieved 4% net sales growth in 2025, with an organic daily sales increase of 1%. Organic sales volume grew 1% during the year as our teams continued to gain market share, which more than offset the decline in our end markets. As I mentioned, pricing was flat in 2025, which was a significant improvement from the 3% decline we experienced in 2024.

Speaker #3: We achieved 4% net sales growth in 2025 with an organic daily sales increase of 1%. Organic sales volume grew 1% during the year as our teams continued to gain market share which more than offset the decline in our end markets.

Speaker #3: As I mentioned, pricing was flat in 2025, which was a significant improvement from the 3% decline we experienced in 2024. Pricing was up 2% in the fourth quarter, and with most of the commodity product deflation behind us, we expect that trend to continue into 2026, supporting stronger organic daily sales growth.

Doug Black: Pricing was up 2% in the fourth quarter, and with most of the commodity product deflation behind us, we expect that trend to continue into 2026, supporting stronger organic daily sales growth. Gross profit for 2025 increased 5%, and gross margin increased 40 basis points to 34.8%. The increase in gross margin was driven by improved price realization, benefits from our commercial initiatives, and a positive contribution from acquisitions, partially offset by higher freight and logistics costs to support our growth, including the establishment of our fifth distribution center during the fourth quarter. SG&A, as a percentage of net sales, decreased 40 basis points to 30.1%, as our strong actions to reduce SG&A in the base business were partially offset by the addition of acquisitions with higher operating costs.

Speaker #3: Gross profit for 2025 increased 5% and gross margin increased 40 basis points to 34.8%. The increase in gross margin was driven by improved price realization, benefits from our commercial initiatives, and a positive contribution from acquisitions partially offset by higher freight and logistics costs to support our growth.

Doug Black: including the establishment of our fifth distribution center during the fourth quarter. SG&A, as a percentage of net sales, decreased 40 basis points to 30.1%, as our strong actions to reduce SG&A in the base business were partially offset by the addition of acquisitions with higher operating costs.

Speaker #3: Including the establishment of our fifth distribution center during the fourth quarter. SG&A as a percentage of net sales decreased 40 basis points to 30.1%, as our strong actions to reduce SG&A in the base business were partially offset by the addition of acquisitions with higher operating costs.

Speaker #3: SG&A for the base business decreased 50 basis points compared to 2024 on an adjusted EBITDA basis. As we continue to optimize our branch network, reduce our net customer delivery expense, and closely manage labor and expenses in relation to sales volume.

Doug Black: SG&A for the base business decreased 50 basis points compared to 2024 on an Adjusted EBITDA basis, as we continue to optimize our branch network, reduce our net customer delivery expense, and closely manage labor and expenses in relation to sales volume. We reduced the cost of our branch network further in the fourth quarter and expect to continue achieving SG&A leverage in 2026. Adjusted EBITDA in 2025 increased 10% year-over-year to $414.2 million, and Adjusted EBITDA margin for the year improved 50 basis points to 8.8%, reflecting positive organic daily sales growth, gross margin improvement, solid operating leverage, and good contributions from acquisitions.

Speaker #3: We reduced the cost of our branch network further in the fourth quarter and expect to continue achieving SG&A leverage in 2026. Adjusted EBITDA in 2025 increased 10% year over year to $414.2 million.

Speaker #3: And adjusted EBITDA margin for the year improved 50 basis points to 8.8%, reflecting positive organic daily sales growth, gross margin improvement, solid operating leverage, and good contributions from acquisitions.

Doug Black: reflecting positive organic daily sales growth, gross margin improvement, solid operating leverage, and good contributions from acquisitions.

Speaker #3: Given the challenging markets, we were pleased to achieve solid adjusted EBITDA margin expansion, and expect to continue driving our EBITDA margins toward our longer-term objectives in the coming years.

Doug Black: Given the challenging markets, we were pleased to achieve solid Adjusted EBITDA margin expansion and expect to continue driving our EBITDA margins toward our longer-term objectives in the coming years. In terms of initiatives, our teams are executing specific actions to improve our customer experience, accelerate organic growth, expand gross margin, and increase SG&A leverage. For gross margin improvement, we continue to increase sales with our small customers faster than our company average, drive growth in our private label brands, and improve inbound freight costs through our transportation management system. These initiatives not only improve our gross margin, but also add to our organic growth as we gain market share in the small customer segment, as well as across product lines with our private label brands like LESCO, Pro-Trade, Solstice Stone, and Portfolio.

Speaker #3: In terms of initiatives, our teams are executing specific actions to improve our customer experience, accelerate organic growth, expand gross margin, and increase SG&A leverage.

Speaker #3: For our gross margin improvement, we continue to increase sales with our small customers faster than our company average. We are driving growth in our private label brands and improving inbound freight costs through our transportation management system.

Doug Black: drive growth in our private label brands, and improve inbound freight costs through our transportation management system. These initiatives not only improve our gross margin, but also add to our organic growth as we gain market share in the small customer segment, as well as across product lines with our private label brands like LESCO, Pro-Trade, Solstice Stone, and Portfolio.

Speaker #3: These initiatives not only improve our gross margin, but also add to our organic growth as we gain market share in the small customer segment, as well as across product lines with our private label brands like LESCO, ProTrade, Solstice Stone, and Portfolio.

Doug Black: In 2025, we increased our mix of private label products by over 100 basis points, from 14% to 15% of total sales. To further drive organic growth, we increased our percentage of bilingual branches from 62% of branches to 67% of branches, while executing Hispanic marketing programs to create awareness among this important customer segment. We're also making great progress with our sales force productivity as we leverage our CRM and establish more disciplined revenue-generating habits and processes among our inside sales associates and our over 600 outside sales associates. Our digital initiative with siteone.com is also helping us drive organic daily sales growth, as our results have shown that customers who are engaged with us digitally grow significantly faster than those who are not.

Speaker #3: In 2025, we increased our mix of private label products by over 100 basis points, from 14% to 15% of total sales. To further drive organic growth, we increased our percentage of bilingual branches from 62% to 67% of branches.

Speaker #3: While executing Hispanic marketing programs to create awareness among this important customer segment, we're also making great progress with our Salesforce productivity as we leverage our CRM and establish more disciplined revenue-generating habits and processes among our inside sales associates and our over 600 outside sales associates.

Speaker #3: Our digital initiative with SiteOne.com is also helping us drive organic daily sales growth. As a result, it has shown that customers who are engaged with us digitally grow significantly faster than those who are not.

Doug Black: Our digital initiative with siteone.com is also helping us drive organic daily sales growth, as our results have shown that customers who are engaged with us digitally grow significantly faster than those who are not.

Speaker #3: In 2025, we increased digital sales by over 120% while adding thousands of new regular users. SiteOne.com helps customers be more efficient and helps us increase market share while making our associates more productive, a true win-win-win.

Doug Black: In 2025, we increased digital sales by over 120%, while adding thousands of new regular users. siteone.com helps customers be more efficient and helps us increase market share while making our associates more productive. A true win-win-win. Through siteone.com and our other digital tools, we are accelerating organic growth, and we believe we are outperforming the market. The benefit of DispatchTrack, which allows us to more closely manage our customer delivery. We improved both associate and equipment efficiency for delivery in 2025, while more consistently pricing this service. As a result, we've reduced our net delivery expense by over 40 basis points on delivered sales, which represents approximately 1/3 of our total sales. This is a major initiative, and we expect to make significant progress again in 2026 and over the next 2 to 3 years.

Speaker #3: Through SiteOne.com and our other digital tools, we are accelerating organic growth and we believe we are outperforming the market. With the benefit of dispatch track, which which allows us to more closely manage our customer delivery, we improved both associate and equipment efficiency for delivery in 2025 while more consistently pricing this service.

Doug Black: while more consistently pricing this service. As a result, we've reduced our net delivery expense by over 40 basis points on delivered sales, which represents approximately 1/3 of our total sales. This is a major initiative, and we expect to make significant progress again in 2026 and over the next 2 to 3 years.

Speaker #3: As a result, we reduced our net delivery expense by over 40 basis points on delivered sales. Which represents approximately one-third of our total sales.

Speaker #3: This is a major initiative, and we expect to make significant progress again in 2026 and over the next two to three years. In 2025, we focused intensely on our underperforming branches—or focus branches—to ensure that they have the right teams, the right support, and are executing our best practices to bring their performance up to or above the SiteOne average.

Doug Black: In 2025, we focused intensely on our underperforming branches or focus branches, to ensure that they have the right teams, the right support, and are executing our best practices to bring their performance up to or above the SiteOne average. We were pleased to achieve an over 200 basis point improvement in the Adjusted EBITDA margin of our focus branches in 2025. Going forward, we expect to gain a meaningful Adjusted EBITDA margin lift for SiteOne in the coming years as we continue to improve the performance of these branches. For further progress in 2026, in the face of continued soft markets, we consolidated and closed 20 branches in the Q4 of 2025, and plan to serve existing customers through our remaining branch network at a lower cost.

Speaker #3: We were pleased to achieve an over 200 basis point improvement in the adjusted EBITDA margin of our focus branches in 2025. Going forward, we expect to gain a meaningful adjusted EBITDA margin lift for SiteOne in the coming years as we continue to improve the performance of these branches.

Doug Black: For further progress in 2026, in the face of continued soft markets, we consolidated and closed 20 branches in the Q4 of 2025, and plan to serve existing customers through our remaining branch network at a lower cost.

Speaker #3: Further progress in 2026 in the face of continued soft markets. We consolidated and closed 20 branches in the fourth quarter of 2025 and plan to serve existing customers through our remaining branch network at a lower cost.

Speaker #3: Taken all together, we executed well in 2025 and are gaining momentum with our commercial and operational initiatives to drive organic growth, increase gross margin, and achieve operating leverage in 2026 and beyond.

Doug Black: Taken all together, we executed well in 2025 and are gaining momentum with our commercial and operational initiatives to drive organic growth, increase gross margin, and achieve operating leverage in 2026 and beyond. On the acquisition front, as I mentioned, we added 8 companies to our family in 2025, with approximately $55 million in trailing twelve months sales added to SiteOne. With the market uncertainty and with all our acquisitions being small, 2025 was a lighter year than typical in terms of acquired revenue. Given our current backlog and discussions, we expect 2026 to be a more typical year in terms of average deal size.

Speaker #3: On the acquisition front, as I mentioned, we added eight companies to our family in 2025 with approximately 55

Speaker #1: $5 million in trailing 12 months sales were added to SiteOne. But with the market uncertainty and all our acquisitions being small, 2025 was a lighter year than typical in terms of acquired revenue.

Doug Black: Given our current backlog and discussions, we expect 2026 to be a more typical year in terms of average deal size.

Speaker #1: with all And our acquisitions being small , 2025 was a lighter year than typical in terms of acquired revenue . Given our current backlog and discussions , we expect 2026 to be a more year in typical terms of average deal size .

Doug Black: With an experienced acquisition team, broad and deep relationships with the best companies, strong balance sheet, and an exceptional reputation as the acquirer of choice, we remain well-positioned to grow consistently through acquisition for many years in the very fragmented wholesale landscape supply distribution market. In summary, our teams did a good job in 2025, managing through the headwinds, executing our strategy, leveraging our breadth of commercial and operational initiatives, and creating momentum as we move into 2026. After three years with no price benefit, we are pleased to be entering 2026 with positive pricing, and we are confident in our ability to continue outperforming the market and expanding our Adjusted EBITDA margin as we grow.

Speaker #1: With an experienced acquisition team brought in deep relationships with the best companies , strong balance sheet and an exceptional reputation as the acquirer of choice .

Speaker #1: remain We well to grow positioned consistently through acquisition for many years in the very wholesale fragmented landscape , supply distribution market . In summary , our teams did a good job in 2025 , managing through the headwinds , executing our strategy , leveraging our breadth of commercial and operational initiatives , and creating momentum as we move 2026 .

Doug Black: After three years with no price benefit, we are pleased to be entering 2026 with positive pricing, and we are confident in our ability to continue outperforming the market and expanding our Adjusted EBITDA margin as we grow.

Speaker #1: After three years with no price benefit . We are pleased to be entering 2026 with positive pricing and we are confident in our ability to continue outperforming the market and expanding our adjusted EBITDA margin as we grow .

Doug Black: We are excited about our future, and we continue to build our company and deliver superior value for our customers, suppliers, and shareholders for the long term. Now, Eric will walk you through the quarter and full year in more detail. Eric?

Speaker #1: We are excited about our future and we continue to build our company and deliver superior value for our customers , suppliers and shareholders for the long term .

Eric Elema: Thanks, Doug. I'll begin on slides 9 and 10 with some highlights of our fourth quarter and full year results. Reported an increase in net sales of 3% to $1.05 billion for the fourth quarter, and an increase of 4% to $4.7 billion for fiscal year 2025. There were 61 selling days in the fourth quarter and 252 selling days in fiscal year 2025. Both were the same number of selling days as the prior year periods. In fiscal year 2026, we have an extra week, which will result in an increase to 256 selling days.

Speaker #1: Now, Eric will walk you through the quarter and full year in more detail. Eric.

Speaker #2: Thanks , Doug . I'll begin on slides nine and ten with some highlights of our fourth quarter and full year results . Reported an increase in net sales of 3% to 1.5 billion for the fourth quarter , and an increase of 4% to 4.7 billion for fiscal year 2025 .

Speaker #2: There were 61 selling days in the fourth quarter and 252 selling days in fiscal year 2025. Both were the same number of selling days as the prior year periods in fiscal year 2026.

Eric Elema: Unfortunately, as Doug will describe in our outlook, the additional 4 days of sales occur at the end of fiscal December, when there is little landscaping activity, which we expect will result in a $4 to 5 million EBITDA headwind for the 2026 fiscal year. Organic daily sales increased 2% in the fourth quarter compared to the prior year, driven by improved pricing, our sales initiatives, and solid demand in the maintenance end market, especially for ice melt products. For the full year, organic daily sales increased 1% due to steady growth in the maintenance end market and execution of our sales initiatives, partially offset by softer demand in the new residential construction and repair and upgrade end markets. Price increases contributed 2% to organic daily sales growth this quarter.

Speaker #2: have an We extra week which will result in an increase to 256 selling days . Unfortunately , as Doug will our describe in outlook , the additional four days of sales occur at the end of fiscal December , when there is little landscaping activity , which we expect will result in a 4 to 5 million EBITDA headwind for the 2026 fiscal year daily .

Speaker #2: Organic sales increased 2% in the fourth quarter compared to the prior year , driven by improved pricing . Our sales initiatives and solid demand in the maintenance and market , especially for ice melt products .

Speaker #2: For the full year , organic sales increased 1% due to steady growth in the maintenance and market and execution of our sales initiatives , partially offset by softer new residential demand in the and repair and construction upgrade end markets .

Eric Elema: partially offset by softer demand in the new residential construction and repair and upgrade end markets. Price increases contributed 2% to organic daily sales growth this quarter.

Eric Elema: Price increases, due in part to tariffs, have now more than offset the price decreases we are experiencing with select commodity products. We have positive pricing in almost all categories, while commodity products like grass seed and PVC pipe, which were down 12% and 10%, respectively, this quarter, are becoming less of a headwind. For the full year, we estimate the pricing impact on 2025 Organic Daily Sales was negligible compared to the 2024 fiscal year, as deflationary impacts earlier in the year were offset by modest price inflation in the second half. Our current outlook for 2026 is for prices to increase by 1% to 3%. Organic Daily Sales for agronomic products, which includes fertilizer, control products, ice melt, and equipment, increased 11% for the Q4....

Speaker #2: Price increases contributed 2% to organic daily sales growth this quarter. Price increases, due in part to tariffs, have now more than offset the price decreases.

Speaker #2: We experiencing with select commodity products . We have positive pricing in almost all categories , while commodity products like grass seed and PVC pipe , which were down 12% and 10% respectively this quarter , are becoming less of a headwind for the full year .

Speaker #2: We estimate the pricing impact on 2025 organic daily sales was negligible compared to the 2024 fiscal year, as deflationary impacts earlier in the year were offset by modest price inflation in the second half.

Eric Elema: Our current outlook for 2026 is for prices to increase by 1% to 3%. Organic Daily Sales for agronomic products, which includes fertilizer, control products, ice melt, and equipment, increased 11% for the Q4....

Speaker #2: Our current outlook for 2026 is for prices to increase by 1% to 3% . daily sales Organic for agronomic products , which includes control fertilizer equipment , and melt products , ice increased the 11% for fourth quarter and 7% for the full year due to strong volume growth and solid end market demand .

Eric Elema: and 7% for the full year, due to strong volume growth and solid end market demand. In the fourth quarter, the strong agronomic sales growth was driven by the sales of ice melt products, which benefited from an increase in snow events during the quarter, compared to a low number of events in the prior year period. While snow events are good for sales of ice melt, they generally have a negative effect on overall organic growth. Organic daily sales for landscaping products, which includes irrigation, nursery, hardscapes, outdoor lighting, and landscape accessories, decreased 1% for the fourth quarter and 1% for the full year, due to softer demand in the fourth quarter.

Speaker #2: In the fourth quarter, the strong agronomic sales growth was driven by the sales of ice melt, which benefited products from an increase in snow events during the quarter compared to a low number of events in the prior year period.

Speaker #2: While snow events are good for sales of ice melt , they generally have a negative effect on overall organic growth . Organic daily sales for landscaping products , which includes irrigation , nursery Hardscapes , outdoor lighting and landscape accessories , decreased 1% for the fourth quarter and 1% for the full year due to softer demand in the .

Eric Elema: decreased 1% for the fourth quarter and 1% for the full year, due to softer demand in the fourth quarter.

Eric Elema: We achieved solid growth in our Midwest markets due to the strong sales of agronomic products, but continue to see pressure in markets like Texas and California that have been affected by softness in new construction demand. Acquisition sales, which reflect sales attributable to acquisitions completed in 2024 and 2025, contributed $12 million or 1% to net sales growth in Q4. For the 2025 fiscal year, acquisition sales contributed $111 million, or 2%, to net sales growth. Scott will provide more details regarding our acquisition strategy later in the call. Gross profit for Q4 was $357 million, which was an increase of 6% compared to the prior year period. Gross margin for Q4 increased 80 basis points to 34.1%.

Speaker #2: In the fourth quarter, we achieved solid growth in our Midwest markets due to the strong sales of agronomic products, but continue to see pressure in markets like Texas and California that have been affected by softness in new construction demand.

Speaker #2: Acquisition sales , which reflect sales attributable to acquisitions completed in 2024 and 2025 , contributed 12 million , or 1% , to net sales growth in the fourth quarter .

Speaker #2: For the 2025 fiscal year, acquisition sales contributed $111 million, or 2%, to net sales growth. Scott will provide more details on our acquisition strategy later in the call.

Eric Elema: Gross profit for Q4 was $357 million, which was an increase of 6% compared to the prior year period. Gross margin for Q4 increased 80 basis points to 34.1%.

Speaker #2: Gross profit for the fourth quarter was $357 million, which was an increase of 6% compared to the prior year period. Gross margin for the fourth quarter increased 80 basis points to 34.1%.

Eric Elema: For the 2025 fiscal year, gross profit increased 5% and gross margin increased 40 basis points to 34.8%. The increase in gross margin for the Q4 and full year reflects improved price realization benefits from our commercial initiatives and a positive contribution from acquisitions, partially offset by higher freight and logistics costs. During the year, we added a fifth distribution center near Milwaukee, Wisconsin, and we increased international sourcing to support the growth of private label products. Selling, general, and administrative expenses, or SG&A, increased less than 1% to $366 million for the Q4. SG&A, as a percentage of net sales, decreased 100 basis points in the quarter to 35%.

Speaker #2: In the 2025 fiscal year, gross profit increased 5%, and gross margin increased 40 basis points to 34.8%. The increase in gross margin for the fourth quarter and full year reflects improved price realization benefits from our commercial initiatives and a positive contribution from acquisitions, partially offset by higher freight and logistics costs.

Speaker #2: During the year , we added a fifth distribution center near Milwaukee , Wisconsin , and we increased international sourcing to support the growth of private label products , selling general and administrative expenses , or SGA , increased less than 1% to 366 million for the fourth quarter .

Eric Elema: SG&A, as a percentage of net sales, decreased 100 basis points in the quarter to 35%.

Speaker #2: G&A as a percentage of net sales decreased 100 basis points in the quarter to 35%. As discussed during last quarter's earnings call, we consolidated and closed 20 branches in the locations in the fourth quarter, which negatively impacted SG&A by $6 million, of which $4.5 million is reflected in adjusted EBITDA in the fourth quarter of 2024.

Eric Elema: As discussed during last quarter's earnings call, we consolidated and closed 20 branch locations in Q4, which negatively impacted SG&A by $6 million, of which $4.5 million is reflected in adjusted EBITDA. In Q4 of 2024, we took similar actions to consolidate and close 22 locations, which negatively affected SG&A by $16 million, of which $4.5 million was included in our adjusted EBITDA results. These actions reflect our continued efforts to optimize our branch footprint and lower our cost structure to match the current environment. As a reminder, in most cases, with our consolidations and closures, we typically can serve customers from other branches in the same market, and therefore, we expect to retain most of the sales.

Speaker #2: We took similar actions to consolidate and close 22 locations , which negatively affected by 16 million , of 4.5 million was included in our adjusted EBITDA results .

Speaker #2: These actions reflect our continued efforts to optimize our branch footprint and lower our cost structure to match the current environment . As a reminder , in most cases with our consolidations enclosures , we typically can serve customers from other branches in the same market and therefore we expect to retain most of the sales .

Eric Elema: As a reminder, in most cases, with our consolidations and closures, we typically can serve customers from other branches in the same market, and therefore, we expect to retain most of the sales.

Eric Elema: For the quarter, base business SG&A as a percentage of net sales was roughly flat, reflecting our ongoing operating cost management actions, which helped offset higher incentive compensation expense. For the full year, SG&A increased 2% to $1.4 billion, and SG&A, as a percentage of net sales, decreased 40 basis points to 30.1%. Base business SG&A, as a percentage of net sales, decreased 50 basis points for 2025 compared to the prior year. This improvement reflects our continued efforts to increase productivity and better align our operating costs with the current market demand. Our effective tax rate for fiscal 2025 was 22.5%, compared to 22.4% for fiscal 2024. The small increase in the effective tax rate was due primarily to a decrease in the amount of excess tax benefits from stock-based compensation.

Speaker #2: For the quarter , based business , G&A as a percentage of net sales was roughly flat , reflecting our ongoing operating cost management actions , which help offset higher incentive compensation expense .

Speaker #2: For the full year, S&G&A increased 2% to $1.4 billion, and as a percentage of net sales decreased 40 basis points to 30.1%.

Speaker #2: Base business, and as a percentage of net sales, decreased 50 basis points for 2025 compared to the prior year. This improvement reflects our continued efforts to increase productivity and better align our operating costs with the current market demand.

Eric Elema: Our effective tax rate for fiscal 2025 was 22.5%, compared to 22.4% for fiscal 2024. The small increase in the effective tax rate was due primarily to a decrease in the amount of excess tax benefits from stock-based compensation.

Speaker #2: Our effective tax rate for fiscal 2025 was 22.5% , compared to 22.4% for fiscal 2020 . For the small increase in the effective tax rate was due primarily to a decrease in the amount of excess tax benefits from stock based compensation .

Eric Elema: Excess tax benefits of $3.8 million were recognized for the fiscal 2025 year, as compared to $3.3 million for the prior year. We expect the effective tax rate for fiscal 2026 will be between 25% and 26%, excluding discrete items such as excess tax benefits. Net loss attributable to SiteOne was $9 million for Q4, compared to a net loss of $21.7 million for the prior year period. Net income attributable to SiteOne for fiscal 2025 increased to $151.8 million, compared to $123.6 million for fiscal 2024. The improvement in both Q4 and full year was primarily due to higher net sales, improved gross margin, and the achievement of SG&A leverage.

Speaker #2: Excess tax benefits of 3.8 million were recognized for the 2025 fiscal year , as compared to 3.3 million for the prior year . We expect the effective rate for tax fiscal 2026 will be between 25% and 26% , excluding discrete items such as excess tax benefits .

Speaker #2: Net loss attributable to SiteOne was $9 million for the fourth quarter, compared to a net loss of $21.7 million for the prior year period.

Speaker #2: Net income attributable to site one for fiscal 2025 . Increased to 151.8 million , compared to 123.6 million for fiscal 2024 . The improvement in both the fourth quarter and full year was primarily due to higher net sales , improved gross margin , and the achievement of a leverage .

Eric Elema: improved gross margin, and the achievement of SG&A leverage.

Eric Elema: Our weighted average diluted share count was 45.1 million for the 2025 fiscal year, compared to 45.6 million for the 2024 fiscal year. We repurchased 322,000 shares for $40 million in the fourth quarter and 817,000 shares for $97.7 million at an average price of $119.62 per share for the full year. Adjusted EBITDA increased 18% to 37.6 million for the fourth quarter, compared to 31.8 million for the prior year period. Adjusted EBITDA margin expanded 50 basis points to 3.6%. For the full year, adjusted EBITDA increased approximately 10% to 414.2 million, compared to 378.2 million for the 2024 fiscal year.

Speaker #2: weighted A average diluted share count was 45.1 million for . For the 2025 fiscal year , compared to 45.6 million for the 2024 fiscal year .

Speaker #2: We repurchased 322,000 shares for 40 million in the fourth quarter , and 817,000 shares for 97.7 million at an average price of $119.62 per share .

Speaker #2: For the full year, adjusted EBITDA increased 18% to $37.6 million for the fourth quarter, compared to $31.8 million for the prior year period.

Speaker #2: Adjusted EBITDA margin expanded 50 basis points to 3.6% for the full year. Adjusted EBITDA increased approximately 10% to $414.2 million, compared to $378.2 million for the 2024 fiscal year.

Eric Elema: Adjusted EBITDA margin improved 50 basis points to 8.8% for the 2025 fiscal year. Adjusted EBITDA includes adjusted EBITDA attributable to non-controlling interest of $1.1 million and $4.2 million for the fourth quarter and full year, respectively. Now, I'd like to provide a brief update on our balance sheet and cash flow statement, as shown on Slide 11. Working capital at the end of the 2025 fiscal year was $1.01 billion, compared to $909 million at the end of the prior year. The increase in working capital is primarily due to higher cash on hand and strategic purchases of inventory to support our growth. Cash provided by operating activities increased to $165 million for the fourth quarter, compared to $119 million for the prior year period.

Speaker #2: Adjusted EBITDA margin improved 50 basis points to 8.8% for the 2025 fiscal year . Adjusted EBITDA includes adjusted EBITDA attributable to non-controlling interests to 1.1 million , and 4.2 million for the full year fourth quarter and , respectively .

Speaker #2: Now , I'd like provide a to update on our sheet and balance cash flow statement , as shown on slide 11 . Working capital at the end of the 2025 fiscal year was 1.01 billion , compared to 909 million at the end of the prior year .

Speaker #2: The increase in working capital is due to primarily higher cash on hand and strategic purchases of inventory to support our growth provided by .

Eric Elema: Cash provided by operating activities increased to $165 million for the fourth quarter, compared to $119 million for the prior year period.

Speaker #2: Operating cash activities increased to $165 million for the fourth quarter, compared to $119 million for the prior year period. The increase in cash flows from operating activities for the fourth quarter reflects higher net income and improved working capital management.

Eric Elema: The increase in cash flows from operating activities for the fourth quarter reflects higher net income and improved working capital management. Cash provided by operating activities for the full year was $301 million, compared to $283 million for the prior year. The increase in cash flow from operating activities in the 2025 fiscal year was primarily due to the improvement in net income. We made cash investments of $30 million for the fourth quarter, compared to $37 million for the same period in 2024. We made cash investments of $83 million in the 2025 fiscal year, compared to $177 million in the prior year. The decrease in both the fourth quarter and full year is attributable to lower investments and acquisitions. Capital expenditures for the quarter were $15 million, compared to $10 million for the prior year period.

Speaker #2: Cash provided by activities for the full year was $301 million, compared to $283 million for the prior year. The increase in cash flow from operating activities in the 2025 fiscal year was primarily due to the improvement in net income.

Speaker #2: We made cash investments of $30 million for the fourth quarter, compared to $37 million for the same period in 2024. We made cash investments of $83 million for the 2025 fiscal year, compared to $177 million in the prior year.

Eric Elema: The decrease in both the fourth quarter and full year is attributable to lower investments and acquisitions. Capital expenditures for the quarter were $15 million, compared to $10 million for the prior year period.

Speaker #2: The decrease in both the fourth quarter and full year is attributable to lower investments in acquisitions , capital expenditures for the quarter were 15 million , compared to 10 million for the prior year period .

Eric Elema: Capital expenditures for the 2025 fiscal year were $54 million, compared to $41 million for the 2024 fiscal year. The increase in capital expenditures for both Q4 and full year reflects increased investments in our branch locations. Net debt at the end of the 2025 fiscal year was $330 million, compared to $412 million at the end of the prior year. Leverage decreased to 0.8 times our trailing twelve months Adjusted EBITDA, compared to 1.1 times at the end of the prior year. We had available liquidity of $768 million, which consisted of $191 million of cash on hand and $578 million in available capacity under our ABL facility at the end of the 2025 fiscal year.

Speaker #2: Capital expenditures for the 2025 fiscal year were 54 million , compared to 41 million for the 2024 fiscal year . The increase in capital expenditures for both the fourth quarter and full year reflects increased investments in our branch locations .

Speaker #2: Net debt at the end of the 2025 fiscal year was 330 million , compared to 412 million at the end of the prior year .

Speaker #2: Leverage decreased to our trailing times 12 months 0.8 adjusted EBITDA , compared to 1.1 times at the end of the prior year . We had available liquidity of 768 million , which consisted of 191 million of cash on hand and 578 million in available capacity .

Eric Elema: We had available liquidity of $768 million, which consisted of $191 million of cash on hand and $578 million in available capacity under our ABL facility at the end of the 2025 fiscal year.

Eric Elema: On Slide 12, we highlight our balanced approach to capital allocation. Our primary goal regarding capital allocation is to invest in our business, including the execution of our acquisition strategy. We're also committed to maintaining a conservative balance sheet, as demonstrated by our leverage ratio. To the extent we have excess capital after achieving these objectives, the share repurchase authorization provides us with a mechanism to return capital to our shareholders. In the 2025 fiscal year, we executed our capital allocation strategy, investing $93 million in CapEx and acquisitions, and conservatively maintaining leverage at 0.8 times net debt to adjusted EBITDA, which allowed us to complete share repurchases of approximately $98 million. I will now turn the call over to Scott for an update on our acquisition strategy.

Speaker #2: Under ABL facility . At the end of the 2025 fiscal year . On slide we highlight our balanced approach to capital 12 , allocation .

Speaker #2: Our primary goal regarding capital allocation is to invest in our business, including the execution of our acquisition strategy. We are also committed to maintaining a balanced, conservative sheet, as demonstrated by our leverage ratio.

Speaker #2: The extent we have excess capital after achieving these objectives , the share repurchase authorization provides us with a mechanism to return capital to our shareholders 2025 fiscal year , we the in executed our capital allocation strategy , investing 93 million in CapEx and acquisitions in conservatively maintaining leverage at 0.8 times net debt to adjusted EBITDA , which allowed us to complete share repurchases of approximately 98 million .

Eric Elema: investing $93 million in CapEx and acquisitions, and conservatively maintaining leverage at 0.8 times net debt to adjusted EBITDA, which allowed us to complete share repurchases of approximately $98 million. I will now turn the call over to Scott for an update on our acquisition strategy.

Scott Salmon: Thanks, Eric. As shown on Slide 13, we acquired three companies in Q4, bringing our total for the year to eight, for a combined trailing twelve-month net sales of approximately $55 million in 2025. Additionally, we have acquired one company in 2026. Since 2014, we have acquired 107 companies with approximately $2.1 billion in trailing twelve-month net sales added to SiteOne. Turning to Slides 14 to 17, you will find information on our most recent acquisitions. On 1 October, we acquired Red's Home & Garden, a wholesale distributor of nursery and hardscape products in Wilkesboro, North Carolina. The addition of Red's Home & Garden provides a strategic entry into North Carolina's Appalachian market, allowing us to offer all of our product lines in a new market.

Speaker #2: I will now turn the call over to Scott for an update on our acquisition strategy . Thanks , Eric . As shown on slide 13 .

Speaker #1: We acquired three companies in the fourth quarter , bringing our total for the year to eight for combined . Trailing 12 month net sales of approximately 55,000,000 in 2025 .

Speaker #1: Additionally , we have acquired one company in 2026 . Since 2014 , we have acquired 107 companies with approximately 2.1 billion in trailing 12 month net sales added to site one .

Speaker #1: Turning to slide 14 to 17 , you will find information on our most recent acquisitions . On October 1st , we acquired Reds Home and Garden , a wholesale distributor of nursery and hardscape products in Wilkesboro , North Carolina .

Scott Salmon: The addition of Red's Home & Garden provides a strategic entry into North Carolina's Appalachian market, allowing us to offer all of our product lines in a new market.

Speaker #1: The addition of Reds home and Garden provides a strategic entry into North Carolina's Appalachian market , allowing us to offer all of our product lines in a new market .

Scott Salmon: On 13 November 2025, we acquired CC Landscaping Warehouse, a wholesale distributor of nursery products, bulk materials, and landscape supplies in Bradenton, Florida. The addition of CC Landscaping expands SiteOne's product offering in this fast-growing Florida market. On 20 November 2025, we acquired French Broad Stone Supply, a 2-location wholesale distributor of hardscape products in Arden and Brevard, North Carolina. This acquisition expands our hardscapes presence in the North Carolina Mountain region. Finally, on 13 January 2026, we completed our first acquisition of 2026, adding Bourget Flagstone Company, a division of Bourget Bros. Building Materials and a wholesale distributor of hardscape products, with 1 location in Santa Monica, California....

Speaker #1: On November 13th , we acquired CC Landscaping Warehouse , a wholesale distributor of nursery products , bulk materials and landscape supplies in Bradenton , Florida .

Speaker #1: The addition of CC landscaping expands Site One's product , offering in this fast growing Florida market . On November 20th , we acquired French Broadstone Yards , a two location wholesale distributor of hardscape products in Arden and Brevard North Carolina .

Scott Salmon: Finally, on 13 January 2026, we completed our first acquisition of 2026, adding Bourget Flagstone Company, a division of Bourget Bros. Building Materials and a wholesale distributor of hardscape products, with 1 location in Santa Monica, California....

Speaker #1: This acquisition expands our Hardscapes presence in the North Carolina mountain region . Finally , on January 13th , we completed our first acquisition of 2026 , adding Berger Flagstone Company , a division of Berger Brothers Building Materials and a wholesale distributor of hardscape products with one location in Santa Monica , California .

Scott Salmon: Summarizing on Slide 18, our acquisition strategy continues to create significant value for SiteOne by adding excellent talent and moving us forward toward our goal of providing a full line of landscape products and services to our customers in all major US and Canadian markets. As we've discussed, the high-performing companies we acquired in 2025 were smaller than our historical average. As Doug had mentioned, given our active discussions, we would expect the average deal size to be more typical in 2026. Overall, with our strong balance sheet and a robust pipeline, we remain confident in our ability to continue adding outstanding companies to SiteOne for years to come. I want to thank the entire SiteOne team for their passion and commitment to making SiteOne a great place to work and for welcoming the newly acquired teams when they join the SiteOne family.

Speaker #1: Summarizing on slide 18 , our acquisition strategy continues to create significant value for site one by adding excellent talent and moving us forward toward our goal of providing a full landscape products and services to our customers .

Speaker #1: In all major US and Canadian markets. As we've discussed, the high-performing companies we acquired in 2025 were smaller than our historical average.

Speaker #1: As Doug had mentioned , given our active discussions , we would expect the average deal size to be more typical in 2026 . Overall , strong balance sheet and a robust pipeline , we remain confident in our ability to adding continue outstanding companies to site one for years to come .

Scott Salmon: Overall, with our strong balance sheet and a robust pipeline, we remain confident in our ability to continue adding outstanding companies to SiteOne for years to come. I want to thank the entire SiteOne team for their passion and commitment to making SiteOne a great place to work and for welcoming the newly acquired teams when they join the SiteOne family.

Speaker #1: I want to thank the entire SiteOne team for their passion and commitment to making SiteOne a great place to work, and for welcoming the newly acquired teams when they join the site.

Scott Salmon: I will now turn the call back to Doug.

Doug Black: Thanks, Scott. I'll wrap up on slide 19. As we move into 2026, there continues to be uncertainty with interest rates, consumer confidence, and the overall economy, which could affect our end markets. On the positive side, we are expecting pricing to increase in 2026 for the first time since 2022, which will support higher organic daily sales growth. In terms of end markets, we expect new residential construction, which comprises 20% of our sales, to be down in 2026. Continued elevated interest rates, lower consumer confidence, and high home values are constraining demand. This market was down in 2025, and with continued weakness in housing starts, we're expecting it to drop further in 2026.

Speaker #1: One family . I will now turn the call back to Doug . Thanks , Scott . I'll wrap up on slide 19 as we move into 2026 .

Speaker #1: The continues to be uncertainty with interest rates , consumer confidence , and the overall economy , which could affect our end markets . On the positive side , we are expecting pricing to increase in 2026 for the first time since 2022 , which will support higher organic sales growth in terms of end markets , we expect new residential construction , which comprises 20% of our sales , to be down in 2026 , continued elevated interest rates lower confidence consumer and high home values are constraining demand .

Doug Black: This market was down in 2025, and with continued weakness in housing starts, we're expecting it to drop further in 2026.

Speaker #1: This market was down in 2025 and with continued weakness in housing starts , we are expecting it to drop further in 2026 . New commercial construction , which represents 14% of our sales , was solid in 2025 and we believe it will remain flat in 2026 , meaning activity from our project services teams continues to be slightly positive compared to the prior year , which is a good indicator of continued demand .

Doug Black: New commercial construction, which represents 14% of our sales, was solid in 2025, and we believe it will remain flat in 2026. Meeting activity from our project services teams continues to be slightly positive compared to the prior year, which is a good indicator of continued demand. While the ABI index is showing weakness, our customer backlogs remain solid, and we believe the commercial market will remain resilient for the full year. We believe the repair and upgrade market, which represents 30% of our sales, was down in 2025, but seemed to have stabilized during the second half. Existing home sales continue to be soft, and there is a high degree of uncertainty associated with repair and upgrade. However, the long-term fundamentals for this end market continue to be strong.

Speaker #1: While the Abi index is showing weakness , our customer backlogs remain solid and we believe the commercial market will remain resilient for the full year .

Speaker #1: We believe the repair and upgrade market , which represents 30% of our sales , was down in 2025 . But seemed to have stabilized during the .

Doug Black: Existing home sales continue to be soft, and there is a high degree of uncertainty associated with repair and upgrade. However, the long-term fundamentals for this end market continue to be strong.

Speaker #1: Existing second half home sales continued to be soft , and there is a high degree of uncertainty associated with repair and upgrade . However , the long term fundamentals for this end market continue to be strong .

Doug Black: We estimate that repair and upgrade demand will be flat in 2026. Lastly, in the maintenance end market, which represents 36% of our sales, we achieved excellent sales volume growth in 2025 as our teams gained profitable market share on top of the steady demand growth. We expect the maintenance end market to continue growing steadily in 2026. In total, we expect end market demand to be flat, with growth and maintenance offsetting a decline in new residential construction. Given this backdrop, and with the benefit of our commercial initiatives, we expect to achieve positive sales volume growth, which, when coupled with positive pricing, is expected to yield low single-digit organic daily sales growth for the full year 2026.

Speaker #1: We estimate that repair and upgrade demand will be flat in 2026 . Lastly , in the maintenance end market , which represents 36% of our sales , we achieved excellent sales volume growth in 2025 as our teams gained profitable market share on top of the steady demand growth , we expect the maintenance end market to continue growing steadily in 2026 .

Speaker #1: In total , we expect end market demand to be flat with growth in maintenance offsetting a decline in new residential construction . Given this backdrop , and with the benefit of our commercial initiatives , we expect to achieve positive sales volume growth , which , when coupled with positive pricing , is expected to yield low single digit organic sales growth for full the year 2026 .

Doug Black: we expect to achieve positive sales volume growth, which, when coupled with positive pricing, is expected to yield low single-digit organic daily sales growth for the full year 2026.

Doug Black: We expect Gross Margin in 2026 to be higher than 2025, driven by our commercial initiatives and the contribution from acquisitions, partially offset by higher freight and logistics costs supporting our growth. With our continued strong actions to improve our productivity and by continuing to address our focus branches, we expect to achieve operating leverage in 2026, yielding solid improvement in our Adjusted EBITDA margin. In terms of acquisitions, as Scott mentioned, we have a good pipeline of high-quality targets, and we expect to add more excellent companies to the SiteOne family throughout 2026. Lastly, as Eric mentioned, we have an extra week in 2026. Unfortunately, this extra week occurs in fiscal December, during a very slow sales period, which is a traditionally loss-making period for SiteOne.

Speaker #1: We expect gross margin in 2026 to be higher than 2025 , driven by our commercial initiatives and the contribution from acquisitions , partially offset by higher freight and logistics costs .

Speaker #1: Supporting our growth with our continued strong actions to improve our productivity and by continuing to address our focus branches , we expect to achieve operating leverage in 2026 , yielding solid improvement in our adjusted EBITDA margin .

Speaker #1: Terms of acquisitions . As Scott mentioned , we have a good pipeline of high quality targets and we expect to add more excellent companies to the site .

Doug Black: Lastly, as Eric mentioned, we have an extra week in 2026. Unfortunately, this extra week occurs in fiscal December, during a very slow sales period, which is a traditionally loss-making period for SiteOne.

Speaker #1: One family throughout 2026 . Lastly , as Eric mentioned , we have an extra week in 2026 . Unfortunately , this extra week occurs in fiscal December during a very slow sales period , which is a traditionally loss making period for site one .

Doug Black: As a result, we expect the extra week will reduce our Adjusted EBITDA by $4 to 5 million. With all these factors in mind, and including the negative effect of the 53rd week, we expect our full year Adjusted EBITDA for fiscal 2026 to be in the range of $425 to 455 million. This range does not factor in any contribution from unannounced acquisitions. In closing, I would like to sincerely thank all our SiteOne associates, who continue to amaze me with their passion, commitment, teamwork, and selfless service. We have a tremendous team, and it is an honor to be joined with them as we deliver increasing value for all our stakeholders. I would also like to thank our suppliers for supporting us so strongly and our customers for allowing us to be their partner.

Speaker #1: As a result , we expect the extra week will reduce our adjusted EBITDA by 4 to 5 million . With all these factors in mind , and including the negative effect of the 53rd week , we expect our full year adjusted EBITDA for fiscal 2026 to be in the range of 425 million to 455 million .

Speaker #1: This range does not factor in any contribution from unannounced acquisitions . In closing , I would like to sincerely thank all . Our site one associates who continue to amaze me with their passion , commitment , teamwork and selfless service .

Doug Black: We have a tremendous team, and it is an honor to be joined with them as we deliver increasing value for all our stakeholders. I would also like to thank our suppliers for supporting us so strongly and our customers for allowing us to be their partner.

Speaker #1: We have a tremendous team and it is an honor to be joined with them as we deliver. Increasing stakeholders for value, all our...

Speaker #1: I would also like to thank our suppliers for supporting us so strongly, and our customers for allowing us to be their partner. Operator.

Doug Black: Operator, please open the line for questions.

Scott Salmon: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue.

Speaker #1: Please open the line for questions .

Speaker #3: Thank you . We will now be conducting a question and answer session . If you would like to ask a question , please press star one on your telephone keypad .

Operator: ... You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. We ask that analysts limit themselves to one question and a follow-up so that others may do so as well. One moment, please, while we pull for questions. Our first question comes from David Mantey with Baird. Please proceed with your question.

Speaker #3: A confirmation tone will indicate that your line is in the question queue . You may press star two . If you would like to remove your question from the queue .

Speaker #3: For participants using speaker equipment , it may be necessary to pick up your handset before pressing the star keys . We asset analysts limit themselves to one question and a follow up so that others may do so as well .

Speaker #3: One moment please , while we pull for questions , our first question comes from David Manthey with Baird . Please proceed with your question .

David Manthey: Thank you. Good morning, guys. The first question here, more of a statement. I mean, we're in the shoulder season, obviously, but really encouraging results, so that's great to see. But focusing on the year that, that we just closed up, by my calculations, I think you did over 20% EBITDA contribution margins on just 1% organic growth in 2025. And if I look at the guidance you've given for EBITDA and low single-digit organic growth, I think that implies something in the mid- to high-teens, maybe even higher than that in 2026 again. So first question is just, is, is that your intent? And then I have a follow-up.

Speaker #4: Thank you . Good morning guys . First question here . More of a statement . I mean , we're in the shoulder really but season .

Speaker #4: Obviously , encouraging results . That's great to see . But focusing on the year that that we just closed up , by my calculations I think you did over 20% EBITDA contribution margins on just 1% organic growth in 2025 .

Speaker #4: And if I look at the guidance you've given for EBITDA in low single-digit organic growth, I think that implies something in the mid to high teens, maybe even higher than that in 2026.

Doug Black: Yeah, I think, those are the, you know, kind of the basic numbers. And, you know, we're able to get that, obviously, because we're improving our Gross Margin. At the same time, we're getting SG&A, SG&A leverage. And, you know, we have, as you know, we have the focus branches that we're able to improve, and so that, that gives us, more than, say, a typical drop down to the bottom line on pretty modest sales. And, you know, we expect, that to be the case in 2026 as well as 2025.

Speaker #4: Again . So first question is just is that your intent . And then I have a follow up .

Speaker #1: Yeah , I think those are the you know , kind of the basic numbers . And , you know , we're able to get that obviously , because we're improving our gross margin .

Speaker #1: At the same time , we're getting SG&A leverage . And , you know , we as you know , we have the focus branches that we're able to improve .

Speaker #1: And so that gives us that more than , say , a line typical down to drop on pretty modest sales . And , you know , we expect be the that to case in as well 26 as 25 .

Doug Black: Eventually, that'll, you know, play itself out, but, you know, for now, we can get pretty outsized delivery on low sales because of the focus branch improvement and the other initiatives that we've got that kind of combine together to give us that pretty robust profit improvement.

Speaker #1: Eventually that'll itself out . play But you know , for for now we can get pretty outsized delivery on low sales because because of the focus branch improvement and the other initiatives that we've got , that kind of combine together to give us that , that pretty robust profit improvement .

David Manthey: Yeah, thanks, Doug. You, you, almost answered my, my follow-up question, but let me just drill in a little bit more on that. So the, the factors that had depressed margin previously at the trough were weak market demand, negative pricing. We had this Pioneer overhang, structural investments you made in the business and distribution centers and technology, and, and that was offset by the, the cost reduction efforts that you mentioned. And maybe as it relates to those specific efforts, clearly some of those are in the rearview mirror and no longer apply. But as you look at 2026, which are the, the key levers as we go forward? And, and then is there anything else from a cost standpoint that we need to think about that, will, will be an offset in 2026?

Speaker #4: Yeah . Thanks , Doug . You almost answered my my follow up question , but let me just drill in a little bit more on that .

Speaker #4: So the factors that had depressed margin at the previously trough where weak market demand negative pricing , we had this pioneer overhang structural investments you made in the business .

Speaker #4: And distribution centers . And technology . And that was offset by the cost reduction efforts that you mentioned . And maybe as it relates to those specific efforts , clearly some of those are in the rear view mirror and no longer apply .

David Manthey: But as you look at 2026, which are the, the key levers as we go forward? And, and then is there anything else from a cost standpoint that we need to think about that, will, will be an offset in 2026?

Speaker #4: But as you look at 2026 , which are the key levers as we go forward , and then is there anything else from a cost standpoint that we need to think about that will will be an offset in 26 , just any sort of investment or anything else we should be watching for ?

David Manthey: Just any sort of investment or anything else we should be watching for?

Doug Black: Yeah, I mean, you pretty much hit the list. And that's why we're, you know, we're excited as we look forward. You know, Pioneer's, you know, delivered, you know, significant improved profitability in, in 2025. We expect that to continue in 2026. Deflation, which has been hampering us for several years, is, you know, largely behind us. And, you know, the investments that we made during those periods, even, even when things were tougher, are starting to pay off, and we're getting to harvest those. So, you know, you know, a good outlook, I guess, going forward. The one headwind, we do have a headwind, you know, we mentioned we put in the fifth DC. We put that in Q4. We're also expanding another one of our DCs.

Speaker #1: Yeah , I mean , you pretty much hit the list and that's why we're you know , we're excited as we look forward .

Speaker #1: You know , pioneers . You know , delivered , you know , significant improved profitability in 25 . We expect that to continue in 26 .

Speaker #1: Deflation which has been hampering us for several years is largely behind us . And you know the investments that we've made during those periods , even even when things were tougher , are starting to pay off .

Doug Black: The one headwind, we do have a headwind, you know, we mentioned we put in the fifth DC. We put that in Q4. We're also expanding another one of our DCs.

Speaker #1: And we're getting to harvest those . So , you know , you know , a good outlook . I guess going forward , the one headwind , we do have a headwind .

Speaker #1: put in know , we mentioned we the fifth DC . You We put the that in fourth quarter . We're also expanding another one of our DCS .

Doug Black: You know, when we do that initially, it tends to be dilutive, you know, as $2 million in Q4. It'll be another $8 million next year, as a headwind that will offset some of the Gross Margin improvement, but we'll still see, you know, solid Gross Margin improvement on top of that. Last year, we had a bonus headwind, you know, with very little bonus in 2024. We paid higher bonuses in 2025 on, you know, better performance. So, you know, it kind of, if you will, replaces that headwind in 2026, but that would be the one thing that's kind of-- that would still be going against us.

Speaker #1: You know when we do that initially it tends to be dilutive . You know a couple million dollars in the fourth quarter . It will be another 8 million next year as a headwind .

Speaker #1: That will offset some of the gross margin improvement . But we'll still see solid gross margin improvement on top of that , last year we had a bonus headwind , you know , with very little bonus in 24 .

Speaker #1: We paid higher bonuses in '25 on better performance. So, you know, it kind of, if you will, replaces that headwind in '26.

David Manthey: Got it. Thanks, Doug.

Speaker #1: But that would be the one thing that's kind of that be going against us .

Doug Black: Thank you, David.

Operator: Our next question comes from Ryan Merkel with William Blair. Please proceed with your question.

Speaker #4: Got Thanks , Doug .

Speaker #1: Thank you David .

Ryan Merkel: Hey, guys. Thanks for the question. Wanted to start with the Q1 outlook, if I could. Are you expecting low single-digit organic growth here in Q1? And can you comment on, you know, how the start to the year has gone?

Speaker #3: Our next question comes from Ryan Merkel with William Blair. Please proceed with your question.

Speaker #5: Hey guys . Thanks for the question . I wanted to start with the first quarter outlook . If I could . Are you expecting low single digit organic growth here in one Q and can you comment on how the start of the year has gone ?

Doug Black: Yes. I mean, we would expect our growth to be fairly, you know, balanced through the year. Pricing will be a bit stronger in the first half, just because of the way, you know, the tariff pricing hit kind of in May-ish, you know, April, May of last year, and the way the deflation of the commodity products has come off. We'll probably have stronger pricing in the first half than the second half. But overall, you know, let's call it organic sales volume should be, you know, fairly spread out through the year. The start of the year has been very reasonable. We had a good January. February has been somewhat weather affected, but, you know, we're not seeing anything that doesn't line up with our with our guidance or outlook for the for 2026.

Speaker #1: Yes . I mean , we would expect our growth to be fairly , you know , balanced through the year be a bit .

Speaker #1: in the stronger Pricing will first half . Just because of the way , you know , the the tariff pricing hit kind of in May ish .

Speaker #1: You know, April, May of last year. And the way the deflation of the commodity products has come off will probably have stronger pricing in the first half than the second half.

Speaker #1: But overall , you know , let's call it organic sales volume should be , you know , fairly spread out through the year .

Doug Black: February has been somewhat weather affected, but, you know, we're not seeing anything that doesn't line up with our with our guidance or outlook for the for 2026.

Speaker #1: The start of the year has been very reasonable . We had a good January , February has been somewhat weather affected , you know , we're not seeing anything that doesn't line up with our with our guidance or the outlook for for 2026 .

Ryan Merkel: Okay. That's great to hear.

Doug Black: Yeah.

Ryan Merkel: Then for my follow-up, guiding 2026 organic to low single digits, the flat market, price of 2%. So what I noticed is it doesn't include a lot for share gains. So how are you thinking about share gains in 2026? And then maybe speak generally to competition, if it's still rational or if you're seeing people get a little more competitive here.

Speaker #5: Okay , that's great to hear . And then for my follow up guiding 26 organic to low single digits , the flat market price of 2% .

Speaker #5: So what I noticed is it doesn't include a lot for share gains . So how are you thinking about share gains in 2026 and then and then maybe speak generally to competition if it's still rational or if seeing people get a little more competitive here ?

Doug Black: ... Yeah, no, great question. Yeah, we're confident that we can continue to gain market share. We're obviously very cautious on the market itself. You know, we're calling it flat. But we do expect to gain market share. And so, you know, we probably put some cushion in there. If the market ends up holding up, you know, we should do well on a volume basis. You know, we're very pleased with the 1% volume increase that we got last year when the market was down. So that looks optimistic. In terms of competition, it's the same, right? I mean, it's a very competitive market, you know, we have different competitors. Some are more competitive than others.

Speaker #1: Yeah . No . Great question . Yeah . We're we're confident that we can continue to gain market share . We're obviously very cautious on the market itself .

Speaker #1: You know , we're calling it flat . But we we do expect to to gain market share . And so you know we've probably put some cushion in there .

Speaker #1: If the market ends up holding up you know , we should you know , we should do . Well , you know on a on a volume basis .

Speaker #1: know , we're You very pleased with the 1% volume increase that we got last year when the was , you know , down .

Doug Black: I mean, it's a very competitive market, you know, we have different competitors. Some are more competitive than others.

Speaker #1: So , so that looks , you know , optimistic in terms of competition . It's the same . Right . I mean our very competitive market .

Doug Black: They're all kind of behaving the same. We're very good at battling it out, you know, for the large customers. You know, we're taking share kind of with the small mid customers, where the competition's less or tends to be less, and so that's kind of our strategy. But, competitive environment is very similar, but it is a very, you know, it's a competitive market.

Speaker #1: You know we have different competitors . Some are more than competitive others . They're all kind of behaving the same . We're very good at battling it out .

Speaker #1: You know for the large customers you know we're taking share kind of with a small mid customers where the competition's less or tends to be less .

Speaker #1: so And that's kind of our strategy . But competitive environment is very similar . But but it is a very you know it's a competitive market .

Colin Veron: Very good. Thanks for the thoughts. Best of luck.

Ryan Merkel: Very good. Thanks for the thoughts. Best of luck.

Doug Black: Thank you.

Operator: Our next question comes from Jeffrey Stevenson with Loop Capital Markets. Please proceed with your question.

Speaker #1: .

Speaker #5: Very good. Thanks for the thoughts. Best of luck.

Speaker #1: Thank you .

Jeffrey Stevenson: Hey, thanks for taking my questions today. How should we think about the expected operating leverage benefits in 2026 from your internal initiatives, focus on improving underperformer branches? And then, could there be additional opportunities to close or consolidate branches in addition to the, you know, 20 you, you know, you did in the fourth quarter?

Speaker #3: question Our next comes from Jeffrey Stevenson with Loop Capital Markets . Please proceed with your question .

Speaker #6: Hi . Thanks for taking my questions today . How should we think about the expected operating benefits leverage in 2026 from your internal initiatives ?

Speaker #6: Focus on improving underperformer branches and then could there be additional opportunities to close or consolidate branches in addition to the , you know , 20 you you know , you did in the fourth quarter ?

Eric Elema: Yeah, thanks, Jeff. I think focus branches will continue to contribute. We're expecting kind of a, you know, a similar contribution to 2026 as we delivered in 2025. I think closures at this point, we're not expecting to do something that we have done in the last two fourth quarters. You know, we'll continue to assess those opportunities, but you know, it's part of our typical process to close branches and consolidate, you know, when leases come up. So we're not planning anything significant at this point. But you know, in terms of other SG&A items, we do expect to drive productivity improvements, on top of just the closures, cost management, our delivery programs, multiyear journey, we expect that to contribute again.

Speaker #2: Yeah . Thanks , Jeff . I think focus branches will continue to contribute . We're we're expecting kind of a , you know , a similar contribution to we 26 as delivered in 25 .

Speaker #2: I think closures at this point were not—we were not expecting to do something that we have done in the last two fourth quarters.

Speaker #2: You know , continue to assess those opportunities . But , you know , it's part of our typical process to to close branches and consolidate , you know , when leases come up .

Eric Elema: we do expect to drive productivity improvements, on top of just the closures, cost management, our delivery programs, multiyear journey, we expect that to contribute again.

Speaker #2: So we're not planning anything significant at this point . But , you know , in terms of G&A items other , we do expect to to drive productivity improvements on top of just the closures , cost management , delivery programs , journey .

Eric Elema: So we are facing. You know, we do have inflation, not only in wages, but overall across our SG&A. So we do believe that our initiatives will overcome that and we'll achieve leverage. That's our plans in 2026.

Speaker #2: We expect that to contribute again . So we are facing , you know , we do have inflation , not only in wages but overall cost .

Speaker #2: Our G&A . So we do believe that our initiatives will overcome that and we'll achieve leverage . That's our plans in 26 .

Jeffrey Stevenson: Okay, great. Well, that's helpful. You know, private label growth has been a standout this year, increasing to 15% of sales, and it sounds like you have a long runway of opportunities in your core private label brands. Just, you know, is there a long-term target of, you know, what percentage private label sales could grow to, you know, over the coming years?

Speaker #6: Great . Well Okay . that's helpful . And you know , private label growth has been a standout this year , increasing the 15% of sales .

Speaker #6: And it sounds like you have a long runway of opportunities in your core private label brands . Just , you know , is there a long term target of , you know , what percentage private label sales could grow to , you know , coming over the years ?

Doug Black: Yeah, I mean, we would think that, you know, 25, 30 percent private label in the long term would be, would be very doable. It'll take us, it'll take us time to get there. We kinda have a goal of adding, you know, 100 basis points in our total sales mix a year, and we, we achieved that goal this year. We've got some terrific programs for, you know, private label products for 2026. So we feel like it'll be a steady, very long-term march, but, but, you know, quite powerful over that period in terms of, in terms of margin improvement.

Speaker #1: Yeah , I mean , we would think that , you know , 25 , 30% private label in the long term would be would be very doable .

Speaker #1: It'll take us it'll take us time to get there . of have We kind a goal of adding 100 basis points in our total sales mix a year .

Speaker #1: And we achieved that goal this year . We've got some terrific programs for , private label products for 26 , so we feel like it'll be a steady , very long term March .

Speaker #1: But but you know , quite powerful over that period in terms of in terms of margin improvement .

Jeffrey Stevenson: Great. Thank you.

Doug Black: Thank you.

Operator: Our next question comes from Colin Baron with Deutsche Bank. Please proceed with your question.

Speaker #6: Great . Thank you .

Speaker #1: Thank you .

Colin Veron: Good morning. Thank you for taking my questions. I just wanted to start on maintenance. It's really shown its steadiness in this uneven macro backdrop. So I'm just curious, can you quantify the organic maintenance sales growth you saw in 2025 and sort of what your expectations are in terms of magnitude for 2026? And then, I guess, just the offset here on the new resi side, just any sense of order of magnitude for the declines that you're expecting there?

Speaker #3: Our next question comes from Colin Barron with Deutsche Bank . Please proceed with your question .

Speaker #7: Good morning . Thank you for taking my questions . I just wanted to start on maintenance . It's really shown its steadiness in this uneven macro backdrop .

Speaker #7: So, I'm just curious—can you quantify the organic maintenance sales growth you saw in 2025, and sort of what your expectations are in terms of magnitude for 2026?

Speaker #7: And then I guess just the offset here on the new resi side , just any sense of order of magnitude for for the declines that you're expecting .

Eric Elema: Yeah. Our organic growth for the products we sell into maintenance, so agronomic growth, for the year was 7%, and that was all volume. Pricing came in flat for the full year. You know, in Q4, it was 11% on 9% volume with 2% price. So we feel like we're performing very well, taking share, penetrating adjacent markets, and driving a lot of improvements in our balanced mix of products.

Speaker #7: There .

Speaker #2: Yeah . Our organic growth for , for the products we sell into maintenance . So agronomics growth for the year was 7% . And that was all volume pricing came in flat for the full year .

Speaker #2: And , you know , in the fourth quarter was 11% on 9% volume , with 2% price . So feel like we're we're performing very well , taking share , penetrating adjacent markets and driving a lot of improvements in our balance mix of products .

Doug Black: We think the base market demand is probably 2 to 3% a year in maintenance. You know, it's 36% of our business, so that's a nice kind of powerful force. New res is 20% of our business, so, you know, it does you know, allow us to kinda counterbalance that weakness. But, you know, coming in at 7% volume, we have been gaining market share in maintenance, and we think we can continue. We've been gaining market share there probably for the last two or three years and have great capabilities there, so.

Speaker #1: We think the the base market demand is probably 2 to 3% a year in maintenance . You know , it's 36% of our business .

Speaker #1: So that's that's a nice kind of powerful force . New raise is 20% of our business . you So know it does you know , allow us to kind of counterbalance that weakness .

Speaker #1: But , you know , coming in at 7% volume , we have gaining been market share in in maintenance . And we think we can continue .

Speaker #1: We've been gaining market share . There probably for the last 2 or 3 years . And have great capabilities there . So .

Colin Veron: Great. That's helpful color. I guess just pivoting to Gross Margin, I mean, it was a really strong quarter in Q4, and I think it was slightly better than sort of the expectations coming out of Q3. So maybe can you compare sort of what transpired in Q4 to what you were thinking in Q3 and some of the puts and takes there, and maybe how those will continue into 2026? Thanks.

Speaker #7: Great . That's helpful . Color . And I guess to just pivoting gross margin . I mean , it was a really strong quarter in the fourth quarter .

Speaker #7: And I think it was slightly better than sort of the expectations coming out of the third quarter . So maybe can you compare sort of what transpired in the fourth quarter to what you were thinking in the third quarter and some of the puts and takes there , and maybe how those will continue into 2026 ?

Eric Elema: ... Yeah. So, you know, if you think about price, we had guided 1% to 2%. We ended up on the high end of that with the 2%, so it was a better contribution on price, price realization. Vendor support, we were conservative there, and, you know, things came in a little better. That can move around at the end of a seasonal quarter, not necessarily tied to sales. It's more purchasing volumes related. And then, freight, freight impacts, which, you know, there's been some partial offsets there. That wasn't as bad as we anticipated. And acquisitions contribution came in a little higher on the Gross Margin side. So you know, overall, it was better than we expected.

Speaker #7: Thanks .

Speaker #8: All .

Speaker #2: Yeah . So if you think about price , we had guided 1 to 2% . We ended up on the high end of that with a 2% .

Speaker #2: So it was a better contribution on price . Price realization , vendor support . We were conservative . There . And you know , things came in a little better that can move around at the end of a seasonal quarter , not necessarily tied to sales .

Speaker #2: It's it's more purchasing volumes related . And then freight freight impacts , which , you know , there's been some some partial offsets there that wasn't as bad as we anticipated .

Eric Elema: And acquisitions contribution came in a little higher on the Gross Margin side. So you know, overall, it was better than we expected.

Speaker #2: And acquisitions contribution came in a little higher on the gross margin side . So , you know , overall it was better than we expected .

Eric Elema: We enter the year, you know, on the high end of the pricing guide here for 2026, so we think that'll be beneficial for price realization in Q1 and first half of 2026.

Speaker #2: We we the entered year , you know , on the high end of the pricing guide here for 26 . So we think that will be beneficial for price realization in the first quarter .

Speaker #2: And first half of 26 .

Operator: Our next question comes from Mike Dahl with RBC Capital Markets. Please proceed with your question.

Speaker #3: Our next question comes from Mike Dahl with RBC Capital Markets . Please proceed with your question .

Mike Dahl: Morning. Thanks for taking my questions. First one on just the Organic Daily Sales outlook. I know that with these branch closures, you typically expect to retain most of the sales, but given, you know, you've had at least two larger iterations of this now. I don't know if that may or may not be different than normal, but do you have any kind of stats that are showing you so far, maybe percentage-wise, of what percentage of sales you're retaining and how that's influencing your, if at all, your daily sales guide? And similarly, if we should think about that extra week in December as negatively impacting your daily sales guide.

Speaker #9: Good morning . Thanks for taking my questions . First one on just organic daily sales outlook , I know that with these branch closures , you typically expect to retain most of the sales .

Speaker #9: But given you know you've had two , at least two larger iterations of this now , I don't know if that may or may not be different than normal , but do you have any kind of thoughts that are showing you so far ?

Speaker #9: Maybe percentage wise , of what percentage of sales you're retaining and how ? That's influencing your , if at all ? Your daily sales guide and similarly , if we should think about that extra week in December as negatively impacting your daily sales guide .

Mike Dahl: if we should think about that extra week in December as negatively impacting your daily sales guide.

Doug Black: Yes, in terms of the closures, we typically retain 75, 80 percent of the sale. I mean, that's, that has been our history. And so we would expect something similar. It is baked into our guide, so that's a, you know, bit of a headwind that, you know, obviously, we can overcome with share gains. And then, I'll pass it to Eric for the effect of that 53rd week.

Speaker #1: Yes . In terms of the closures , we typically retain 7,580% of the sale . I mean , that's that has been our history .

Speaker #1: And so we would something expect similar . It is baked into our guide . So that's a bit of a of a headwind that obviously we overcome can with share gains .

Eric Elema: Yeah, the 53rd week, obviously, it's an extra week of sales, but it's a very slow week. You know, think after Christmas, around wrap around New Year. So those 4 extra selling days is, it is seasonally very slow. On the organic daily basis, it's about 100 basis negative drag on organic growth.

Speaker #1: And then I'll pass it to Eric for the effect of the of that 53rd week .

Speaker #2: Yeah . The 53rd week , obviously it's an extra week of sales , but it's it's a very slow week . You know , I think right after Christmas around wrap around New Year's .

Speaker #2: So those four extra selling days is seasonally very slow on the organic daily basis . It's about 100 basis negative drag on organic growth .

Mike Dahl: And Eric, that's for the year or for the quarter, it equates to 100 basis points negative drag on?

Speaker #9: For the and Eric that's for the year or for the quarter . It equates to 100 basis points . Negative drag on on .

Eric Elema: Yeah, that's, that's the full year, that number.

Mike Dahl: Yeah. Okay. Yeah, that's what makes sense. That makes sense. That's what I, I kind of figured. Okay, and then just pivoting to the margin side, you know, you're not giving exact guides for, for SG&A and gross margin per, per usual, but you expect improvement in both. Can you give us a sense of whether it's more heavily geared towards one versus, versus the other?

Speaker #9: .

Speaker #8: Yeah that's .

Speaker #2: That's the full year . That number .

Speaker #10: Yeah .

Speaker #9: Okay . Yeah . That's what makes sense . That makes sense . That's what I kind of figured okay . And then just pivoting to the margin side you know you're not giving exact guides for and for gross margin per usual .

Speaker #9: But you expect the—in both. Can you give us a sense of whether it's more heavily geared towards one versus the other?

Doug Black: It's pretty balanced across the two, you know, as it was in 2025. So we feel like, you know, we're driving initiatives on both sides, and it would be pretty balanced, you know, the contribution of each.

Speaker #1: It's pretty balanced across the two . You know , as it as it was in 2000 , 25 . So we feel like , you know , we're we're driving initiatives on both sides .

Mike Dahl: Okay, great. Thank you. Good luck.

Speaker #1: it would be it And would be pretty balanced . The contribution of each .

Doug Black: Thank you.

Eric Elema: Thank you.

Operator: Our next question comes from Matthew Boulay with Barclays. Please proceed with your question.

Speaker #9: Okay . Great . Thank you . Good luck .

Speaker #8: Thank you. Thank you.

Matthew Bouley: Hi, you have Elaine Ku on for Matt Boulay today. Thank you for taking my questions. I wanted to follow up on private label. So within that, like, what categories are you seeing the most opportunity to expand within? And can you walk us through maybe some of the margin differentials there, for your business?

Speaker #3: Our next question comes from Matthew Bulla with Barclays . Please proceed with your question .

Speaker #11: have a Hi . You for link on Matt Boulay today . Thank you for taking my questions . I wanted to follow up on private label .

Speaker #11: So within that , what categories are you seeing the most opportunity to expand within ? And can you walk us through maybe some of the margin differentials there for your business ?

Doug Black: I mean, the categories are, you know, we have private label, strong private label in agronomics, you know, with the LESCO brand. With the Pro-Trade, that would be lighting and other landscape supplies, like, synthetic turf, erosion control, you know, and, you know, fittings, et cetera. And then we have a strong private label brand, Solstice Stone, in hardscapes. And so that's, that's high-end, you know, veneers and flooring, you know, decking, et cetera. And then finally, Portfolio is our nursery private label, which is growing quite rapidly. So that gives you the full breadth of our private label brands. You know, the differential, we'll just say, is significant. It makes a difference.

Speaker #1: I mean , the categories are , you know , we have private label , strong private label and agronomics , know , you with the Lesco brand , with the pro trade , that would be lighting and other landscape supplies like synthetic turf control , erosion , you know , and , you know , fittings , etc.

Speaker #1: . The and then we have a strong private label brand solstice stone in Hardscapes . And so that's that's high end you know veneers and flooring , decking etc.

Doug Black: So that gives you the full breadth of our private label brands. You know, the differential, we'll just say, is significant. It makes a difference.

Speaker #1: . And then finally portfolio is our nursery private label which is growing quite rapidly . So that that gives you the , the full breadth of our private label brands .

Doug Black: When we move the percentage of private label as a total percent of total sales, you know, it makes a material impact on our Gross Margin.

Speaker #1: You know , the differential . We'll just say is significant . It makes a it makes a difference . And when we move the percentage of private label as a , as a percent of total sales , you know , it makes a material impact on our gross margin .

Matthew Bouley: Got it. And can you also touch on what you're seeing in terms of price increase announcements, so far into, like, early Q1? How has price realization tracked so far, and is there any difference between, like, finished goods and commodity pricing?

Speaker #11: Got it . And can you also touch on what you're seeing in terms of price increase announcements so far into early one ? Q how has price realization tracked so far , and is there any difference between finished goods and commodity pricing ?

Eric Elema: Yeah. So, you know, price realization, I would say it's early, but, you know, it's tracking how we exited. Price increases so far in the quarter, it's early. Largest suppliers, you know, I guess we had one signal, low single digits, so, you know, nothing significant, so far, in the quarter.

Speaker #2: Yeah , so , you price realization , I would say it's early , but you know , it's tracking how we exited price increases so far in the quarter .

Speaker #2: It's early largest suppliers you know is I guess we had one signal low single digit . So you know nothing significant so far in the quarter .

Doug Black: ... commodities?

Eric Elema: Yeah, commodities, sorry. Commodities, so, you know, we exited the year, the two that had been deflationary or have been deflationary, grass seed was down 12 and PVC down 10. As we enter this first half of the year, grass seed will stay in that range, kind of 10 to 15 reprices in June. We'll see. We believe we're at a bottom there. We're down to 2013 pricing levels, so we don't believe that we're gonna go down any further after the first half of the year. And then PVC is kind of flattish right now in the environment. We're kind of monitoring. We haven't seen any price increases or any significant decreases at this point. So commodities right now, we believe we're exiting that deflationary impacts on the business.

Speaker #1: And commodities .

Speaker #2: Yeah . Commodities . Sorry . Commodities . So you know we exited the year . The two that had been deflationary or have been deflationary grass seed was down 12 .

Speaker #2: PVC And down ten . As we enter the this first half of the year , grass will seed stay in that range kind of 10 to 15 reprices in June .

Speaker #2: We'll see . We believe we're at a bottom there . We're down to 2013 pricing levels . So we don't don't believe that we're going to go down any further after the first half of the year .

Eric Elema: We haven't seen any price increases or any significant decreases at this point. So commodities right now, we believe we're exiting that deflationary impacts on the business.

Speaker #2: And then PVCs kind of flattish right now in the environment . We're kind of monitoring . We haven't seen any price increases or or any significant decreases at this point .

Eric Elema: Then across the rest of the cost basket, more than 90% positive price territory and tariff-affected products, where price increases went in Q2 2025. Those have remained in the positive pricing territory.

Speaker #2: So, commodities right now—we believe we're exiting that deflationary impact on the business. And then, across the rest of the cost basket, more than 90% is in positive price territory and tariff-effective products.

Speaker #2: We're price increases in went in the second quarter . In 25 . Those those have remained in the positive pricing territory . Territory .

Colin Veron: Got it. Thank you.

Matthew Bouley: Got it. Thank you.

Operator: Our next question comes from Andrew Carter with Stifel. Please proceed with your question.

Speaker #11: Got it . Thank you .

Andrew Carter: Hey, thank you. Good morning. Regarding the digital growth that you cited, where is digital penetration today across the platform? And is it significantly different by markets to where there's a test case to show where this can be, or is it pretty even at this point?

Speaker #3: Our next question comes from Andrew Carter with steeple . Please proceed with your question .

Speaker #12: Hey . Thank you . Good morning . Regarding the digital growth that you cited , where is digital penetration today across the platform , and is it significantly different by there's a markets to where test case to show where this can be , or is it pretty even at this point ?

Doug Black: It's a pretty broad spread across products now and across geographies. Yeah, we're very pleased. You know, we're up 120% or over 120%, versus last year. You know, we expect that to be a double-digit penetration for total sales, this year. We've got our, you know, regular users of siteone.com are up 60%. There were about 10,000 regular users in 2025. So, yeah, we're very pleased at how digital is ramping up and becoming a very meaningful part of SiteOne.

Speaker #1: It's pretty broad spread across products now . And across geographics . You know , we're very pleased . You know , we're up 120% or over 120% versus last year .

Speaker #1: You know , we expect that to be a double digit penetration for total sales this year . We've got our , you know , regular users of Com are up 60% .

Speaker #1: There were about 10,000 regular users in 2025 . So yeah , we're very how pleased at digital is ramping up and becoming a very meaningful part of of site one .

Andrew Carter: Regarding kind of the end market guidance that you gave, new construction to be down, how much in your guidance is factored in, how deep the declines could go, that you could manage and still stay within your guidance? And remind us, I think you have, you're six months out from new construction. Census is delayed, but so that still gives you till April. So any help and clarity on that key market?

Speaker #12: And regarding of the in-market guidance that you gave new construction to be down , how much in your guidance is factored in , how deep the declines can go , that you could manage and still stay within your and guidance remind us , I think you have from New your six months out construction .

Speaker #12: is delayed , but so that Census still gives you till April . So any help and clarity on that , that key on market ?

Doug Black: Yeah, I mean, it's hard to say, right? There's a lot of uncertainty with new res, but I would kind of, we're looking at maintenance as a balance, and, you know, maintenance is 36% of our business. New res is 20%. Maintenance demand will be up 2 to 3%. You know, so, you know, new res could be down more than that, and obviously, it balances, right? And it, you know. So that's, you know, that gives you the math of how we're thinking about how things will play out. And, you know, we stand ready for if the market is worse than that, then we feel like our share gains can also help balance that. We're gaining strength there. But we'll see what we get.

Speaker #1: Yeah , I mean it's it's hard to say . Right . There's a lot of uncertainty with new rates . But I would kind of we're looking at maintenance as a balance .

Speaker #1: And maintenance is 36% of our business . New rate is 20 . Maintenance demand will be up 2 to 3% . You know .

Speaker #1: So you know new rates could be down more than that . And obviously balances it . Right . And you know , so that's you know , that gives you math of the how we're thinking about how things will play out .

Speaker #1: And you know , you know , we stand ready for if the market is is worse than that , then we feel like our share gains can , can also help balance that .

Doug Black: We're gaining strength there. But we'll see what we get.

Doug Black: 2025 was a down market, we feel, where new res and repair and remodel were both down. And we, you know, were able to kind of drive out a 1% volume growth. So we're still optimistic, even though we feel that the new res market is likely to be, you know, soft and down materially.

Speaker #1: We're gaining strength there , but we'll see what we get . 2025 was a we feel it down market where new rates and repair and remodel were both down , and we , you know , we were able to kind of drive out a 1% volume growth .

Speaker #1: So we're still optimistic even though we we feel that the new raise market is likely to be , you know , soft and down materially .

Andrew Carter: Thanks. Pass it on.

Operator: Our next question comes from Charles Perron-Piché with Goldman Sachs. Please proceed with your question.

Speaker #12: Thanks. Pass it on.

Charles Perron-Piché: Good morning. First, I'd like to touch on the M&A pipeline. What gives you the confidence in the normalization and activity this year? And should activity remain soft, how would you consider other capitalization priorities, given the strength of the balance sheet?

Speaker #3: Our next question comes from Charles Perrone with Goldman Sachs . Please proceed with your question .

Speaker #4: Good morning .

Speaker #13: First, I'd like to touch on M&A and the pipeline. What gives you the normalization and confidence in the activity this year?

Doug Black: Yeah. Thanks, Charles. I would say, you know, obviously, the M&A activity in a year varies significantly, but our long-term average is that the average size is $15 to 20 million in revenue. And just to show the variability, in 2023 and 2024, our average revenue was over $25 million per company, and this year, as you saw, it was well under $10 million. What gives us confidence is that our active discussions this year would lead us to believe that we'd be in a more typical range. So it's just our experience and our ongoing discussions.

Speaker #13: And should activity remain soft , how would you consider other capital allocation priorities given the strength of the balance sheet ?

Speaker #1: Yeah . Thanks , Charles .

Speaker #14: would I say , you know , obviously the M&A activity in the year very significantly , but our long term average is that the average size is 15 to 20 million .

Speaker #14: In revenue . And just to show the variability in 23 and 24 , hour average revenue was over 25 million per company . And this year , as as you saw , it was well under ten .

Speaker #14: What gives us confidence is that our active discussions this year would lead us to believe that we'd be in a more typical range .

Charles Perron-Piché: Got you.

Doug Black: And then in terms of if it is a light year area-

Speaker #14: So it's just our experience and our ongoing discussions . And then in terms of of if a light if it is year .

Eric Elema: Yeah, you know, we would redeploy capital to return cash to the shareholders. So yeah, we would fill in any space there.

Speaker #2: Yeah , you know , we would we would be redeploy capital to return cash to the shareholders . So yeah , what we would fill in any space there .

Charles Perron-Piché: Got it. Okay, that's helpful. And then just touching on the fifth distribution center that opened up in Q4, understanding the, you know, the cost that will come through it in the near term, but can you talk about the expected benefit that you're gonna be able to generate from this? And, you know, the improvement to service associated with that.

Speaker #13: Got it . Okay . That's helpful . And then just touching on the distribution center that opened up in Q4 , understanding the , you know , the cost that will come through it in the near term .

Speaker #13: But can you talk about the expected benefit that you're going to be able to generate from this ? And , you know , the improvement to service associated with that ?

Doug Black: Right. So yeah, the fifth DC is in Wisconsin, so it fills in the mid, you know, the mid, west part of our business. It'll probably, you know, support 100 to 150 branches, and obviously, longer term, that will drive down our, you know, total, you know, delivered cost of goods sold and improve our margins. It's, you know, it is dilutive when we do it initially, but it improves the margins. But it also improves stocking and our ability to, you know, service our customers, you know, with tremendous service at lower overall inventory levels, right? Because we get the inventory efficiency there. So adding the fifth DC will help us continue to lower our overall network costs over time.

Speaker #1: Right . So , yeah , the DC is in Wisconsin . So it fills in the mid , you know , the mid West part of our business .

Speaker #1: It'll probably , you know , support 100 to 150 branches . And obviously longer term that will drive down our , you know , total you know delivered cost of goods sold .

Speaker #1: And improve our margins . It's you know , it is dilutive when we do it initially . But it improves the margins . But it also improves our our stocking and ability to , you know , service our customers .

Doug Black: Because we get the inventory efficiency there. So adding the fifth DC will help us continue to lower our overall network costs over time.

Speaker #1: You know , with tremendous service at lower overall inventory levels because we get the inventory efficiency there . So , so adding the DC will help us continue to lower our overall network costs over time .

Doug Black: It will allow us to, you know, streamline our inventory turns and increase our inventory turns. But, you know, in the short term, it's dilutive in the year where you put it in and ramp yourself up.

Speaker #1: It will allow us to , you know , streamline our inventory turns and increase our inventory turns . But in the , you know , in the short term , it's it's dilutive in the year where you put it in and ramp yourself up .

Eric Elema: I'd also add that, you know, it helps us continue to accelerate our private label-

Doug Black: Yes

Speaker #2: And I'd also add that , you know , it helps us continue to accelerate our private label strategy . So , you know , it gives us just another , another driver there to , to achieve our objectives .

Eric Elema: - strategy. So, you know, it gives us just another driver there to achieve our objectives.

Charles Perron-Piché: All right. Thanks for your time, guys, and good luck for the next quarter.

Doug Black: Thank you.

Eric Elema: Thank you.

Operator: Our next question comes from Sean Callan with Bank of America. Please proceed with your question.

Speaker #13: All right . Thanks for your time , guys , and good luck for the next quarter .

Speaker #8: Thank you . Thank you .

Shaun Calnan: Hi, guys. Thanks for taking my questions. Just a follow-up on the M&A activity question. Do you have a target for the amount of capital you wanna deploy this year, or a target for the leverage ratio outside of the long-term number? Just so we could kinda think about, total M&A and share repurchases together since you're below the low end of your target at this point.

Speaker #3: Our next question comes from Sean Bank of Callahan with America . Please proceed with your question .

Speaker #15: Hi , guys . Thanks for taking my questions . Just a follow up on the M&A activity question . Do you have a target for the amount of capital you want to deploy this year or a target for the leverage ratio outside of the long term number ?

Speaker #15: Just so we could kind of think about total M&A and share repurchases together . Since you're below the low end of your target at this point .

Doug Black: Yeah, I think the target is one-

Eric Elema: 1 to 2 on leverage.

Doug Black: Yeah. And so we would maintain that target. And so we'll see how, you know, the year develops in terms of M&A. You know, M&A tends to average toward a mean, and so with last year being a lighter year, and given the discussions, as Scott mentioned, we feel like this is gonna be a stronger year. And that's our first priority, right? Invest in the business, value-added acquisitions that help us build our company. And then, we do have strong cash flows. We expect them to continue to be strong. If we have capital that we feel is in excess, staying within our target, we'll get share repurchases opportunistically through the year as well.

Speaker #1: Yeah , I think the target is one 1 to 2 .

Speaker #2: leverage . On

Speaker #1: so we we would maintain that target and . So we'll see how , you know , the year develops in terms of M&A you know M&A tends to average toward a mean .

Speaker #1: And so with last year being a lighter year . And given the discussions that Scott mentioned , we feel like this is going to be a stronger year .

Speaker #1: And that's and that's our first priority . Right . Invest in the business value added acquisitions that that help us build our company then .

Speaker #1: do we And cash flows . have strong We expect them to continue to be strong . We we have capital that we feel is in excess .

Doug Black: staying within our target, we'll get share repurchases opportunistically through the year as well.

Shaun Calnan: Okay, great. And then, the macro backdrop for large discretionary spend seems to remain challenged right now, but you guys are guiding for repair and upgrade to be relatively flat this year. What gives you the confidence that it'll remain stable? And then what are you hearing in terms of backlogs on the repair and upgrade side?

Speaker #1: Staying within our target . We'll we'll get share repurchases opportunistically through the year as well .

Speaker #15: Great . Okay . And then the macro backdrop for large discretionary spend seems remain challenge right now . But you guys are guiding for repair and upgrade to be relatively flat .

Speaker #15: This year gives what you the confidence that it will remain stable. And then, what are you hearing in terms of backlogs on the repair and upgrade side?

Doug Black: Yeah, it's a great question. I mean, we would say that flat is our, is our best estimate. There certainly is some uncertainty around there, in terms of the market. What we're seeing in the market is that the very high end of remodel is continues to be strong. You know, big backyard projects where folks aren't borrowing the money, you know, they can pay with cash and, you know, et cetera. So that continues to be strong. What became very weak was that middle, you know, middle income, you know, smaller projects, that would have to be funded through either a, you know, an equity loan or, or some type of, interest rate, device. And so, you know, we, that has been weak.

Speaker #1: Yeah , it's a great question . I mean , we would say that flat is our is our best estimate . There certainly is some uncertainty around their in terms of the market .

Speaker #1: What we're seeing in the market is that the very high end of remodel continues to be strong. You have big backyard projects where folks aren't borrowing the money.

Speaker #1: You know , they can with pay cash . And you know , etc. , so that continues to be strong . What what became very weak was that that middle , you know , middle income , you know , smaller projects that had would have to be funded through either a , you know , an equity loan or some type of interest rate device .

Doug Black: you know, an equity loan or, or some type of, interest rate, device. And so, you know, we, that has been weak.

Doug Black: As we mentioned, the remodel market was down, we believe, in 2025. We've seen some, you know, some stabilization in our own numbers, hardscapes products, lighting products that tend to be remodel-driven would have been, you know, less down as the year progressed through. And so we take that as a sign that the market's kind of bottoming out. Certainly, you know, that could be a wrong progression, but that's what we're seeing. The backlog, our customers, you know, they have, you know, decent backlogs. They're way smaller than they were in the, you know, post-COVID and, you know, some of the heyday, but it seems like they've got reasonable backlogs to be able to deliver on a flat year.

Speaker #1: And so , you know , we that has been weak , as we mentioned , the remodel market was down . We believe in 2025 , we've seen some , you know , some stabilization in our own numbers , Hardscapes products , lighting products that tend to be remodel driven would have been , you know , less the year down as progressed through .

Speaker #1: And so we take that as a sign that the market's kind of bottoming out . Certainly , you know , that that could be a progression .

Speaker #1: what we're that's that's wrong But The seeing . backlog our customers you know they have you know decent backlogs . They're they're way smaller than they were in the , you know , post Covid .

Doug Black: you know, post-COVID and, you know, some of the heyday, but it seems like they've got reasonable backlogs to be able to deliver on a flat year.

Doug Black: So what we're seeing now, obviously, there's some uncertainty there, but it gives us greater confidence that maybe we're hitting the bottom and that this year, this year could be flat.

Speaker #1: And you know , some of the heyday . But it seems like they've got reasonable backlogs to be able to deliver on a flat year .

Speaker #1: So what we're seeing now obviously there's some uncertainty there . But we it gives us greater confidence that maybe we're hitting the bottom and that this year , could be this year flat .

Shaun Calnan: Okay, great. Thank you.

Operator: We have reached the end of our question and answer session now, as there are no further questions at this time. I would now like to turn the floor back over to Doug Black for closing, closing comments.

Speaker #15: Okay . Great . Thank you .

Speaker #3: We have reached the end of our question and answer session . Now as there are no further questions at this time , I would now like to turn the floor back over to Doug Black for closing .

Doug Black: Okay. Well, thank you all for joining us today. We appreciate your interest in SiteOne, and we look forward to speaking to you again at the end of next quarter. Again, a big thank you to all our terrific associates for all they do, our suppliers, and our customers. And we will talk to you next quarter. Thank you.

Speaker #3: Closing comments .

Speaker #1: Okay , well , thank you all for joining us today . We appreciate your interest in site one , and we look forward to speaking to you again at the end of next quarter .

Speaker #1: Again , a big thank you to all our terrific associates do for all they . Our suppliers and our customers . And we will talk to you next quarter .

Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Speaker #1: Thank you .

Q4 2025 SiteOne Landscape Supply Inc Earnings Call

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