SiteOne Landscape Supply Inc.

Overview Key strengths Key risks Nationwide footprint and leading market share compared with direct peers in the highly fragmented landscape products distribution industry. Narrow product range focused exclusively on landscaping supplies within the building materials industry. Robust EBITDA margins of over 10% that compare favorably against other building materials distributors. Susceptible to discretionary spending levels, though the low price of its products offsets it somewhat. S&P Global Ratings-adjusted leverage of 2x-3x and strong cash flow generation that provides capacity for debt-financed acquisitions at the current rating. Seasonal swings tied to housing construction and adverse weather patterns. Revenue increased about 6% to roughly $4.5 billion in fiscal 2024 compared to $4.3 billion in fiscal 2023. This increase was largely due to

...We expect acquisitions will be the primary contributor to revenue growth in fiscal 2025 because we expect organic growth will remain flat. Revenue increased about 6% to roughly $4.5 billion in fiscal 2024 compared to $4.3 billion in fiscal 2023. This increase was largely due to acquisitions because organic growth remained sluggish due to declining price realization from continued price deflation in plastic piping and grass seeds. We expect the company's continued inorganic growth strategy and full-year impact of past acquisitions will modestly increase volumes in fiscal 2025; though, this will be offset by slower growth in repair and renovation activity and residential construction. Moreover, persistent lower price realizations will continue...

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