SiteOne Landscape ((SITE)) has held its Q4 earnings call. Read on for the main highlights of the call.
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The latest earnings call for SiteOne Landscape reflects a balanced perspective, showcasing several significant achievements alongside ongoing challenges. Notable successes include positive sales growth, strategic acquisitions, and an impressive expansion of digital sales. However, the company faces hurdles such as price deflation in key products, decreased adjusted EBITDA, and a net loss in the fourth quarter, which temper the overall results.
Positive Organic Daily Sales Growth
SiteOne Landscape achieved a 1% organic daily sales growth in the fourth quarter despite facing a 3% price deflation headwind. This marks a notable improvement from the negative growth rates observed in the second and third quarters of 2024.
Successful Integration and Expansion
In 2024, SiteOne successfully integrated Pioneer with 22 consolidations and closures, while also adding seven companies that contributed $200 million in trailing 12-month revenue. The company kicked off 2025 with its first acquisition in January.
Robust Acquisition Strategy
Since 2014, SiteOne has completed 99 acquisitions, demonstrating a strong pipeline for future growth. Recent notable acquisitions include Devil Mountain, OakStreet Wholesale Nursery, and Custom Stone.
Digital Sales Growth
Digital sales for SiteOne increased by 180% in 2024, significantly enhancing customer connectivity and expanding market share.
Price Deflation Challenges
The company experienced a 3% price decline in 2024, primarily due to double-digit decreases in PVC pipe and grass seed prices, representing a significant challenge for the company.
Decreased Adjusted EBITDA
SiteOne’s adjusted EBITDA decreased by 8% year-over-year to $378.2 million, with a margin decline of 120 basis points, resulting in an adjusted EBITDA margin of 8.3%.
Net Loss in Fourth Quarter
The company reported a net loss of $21.7 million for the fourth quarter, attributed to higher selling, general and administrative expenses, and a reduced gross margin.
Forward-Looking Guidance
SiteOne provided forward-looking guidance, anticipating low single-digit organic daily sales growth in 2025. The company projects full-year adjusted EBITDA to range between $400 million and $430 million, driven by commercial initiatives, acquisition contributions, and SG&A leverage. Price deflation is expected to moderate, with prices remaining flat to down 1% for the year, while gross margin is anticipated to improve.
In summary, SiteOne Landscape’s earnings call highlights a balanced outlook with notable achievements in sales growth and strategic expansions. Despite challenges such as price deflation and decreased EBITDA, the company remains optimistic about its acquisition strategy and digital sales expansion, offering a promising outlook for 2025.
