SiteOne narrows FY25 adjusted EBTDA view to $405M-$415M from $400M-$430M

Doug Black, SiteOne’s Chairman and CEO, said, “We expect the end market demand in new residential construction, 21% of sales, and repair and upgrade, 30% of sales, to continue to be soft during the remainder of the year, though we are seeing some stabilization in the latter. The maintenance end market, 35% of sales, should continue to grow modestly, and we expect new commercial construction demand, 14% of sales, to be flat. We expect pricing, which was up 1% in the Q3, to be up 1% to 2% in the Q4 as commodity price deflation continues to dissipate,” Black continued. “With the benefit of our commercial initiatives, we expect sales volume to be modestly positive, yielding low single-digit Organic Daily Sales growth for the fourth quarter. With strong cost control, focus branch improvement, improved price realization, and contributions from acquisitions, we remain on track to expand our Adjusted EBITDA margin for the FY25. To proactively address the potential for continued soft market conditions and to further optimize our footprint and cost structure, we plan to consolidate or close additional branches in the Q4 and incur a corresponding charge to Adjusted EBITDA of approximately $4M-$6M. We expect to retain most of the sales from these branches. Given these trends and including the anticipated Q4 charge, we now expect our full year Adjusted EBITDA to be in the range of $405M-$415M. Our guidance does not include any contributions from unannounced acquisitions.”