SiteOne’s second quarter was met positively by the market, as the company delivered steady performance despite challenging market conditions. Management pointed to consistent SG&A (selling, general and administrative) leverage, improved gross margins, and continued market share gains as key factors behind the quarter’s results. CEO Doug Black attributed growth in agronomic products to steady maintenance demand and highlighted ongoing progress in private label brands, digital sales, and operational initiatives. Black emphasized, “We are delivering solid performance and growth in 2025, despite softer end markets.”

Is now the time to buy SITE? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From SiteOne’s Q2 Earnings Call

• David John Manthey (Baird): Asked about SG&A leverage and progress on the Pioneer integration. CEO Doug Black responded that Pioneer is fully integrated and SG&A actions are yielding results, with similar improvements expected from other focus branches.
• Ryan James Merkel (William Blair): Inquired about risks to second-half guidance. Black noted that the key risk is further market deterioration, while internal initiatives remain on track.
• Damian Mark Karas (UBS): Probed the primary drivers of market share gains. Black cited digital adoption, sales force productivity, and private label growth as major contributors.
• Stephen Edward Volkmann (Jefferies): Sought clarification on the pace of focus branch improvement and the outlook for acquisitions. CFO John Guthrie indicated that margin improvements in focus branches are expected to continue, and acquisition activity is determined by seller timing rather than market conditions.
• Matthew Adrien Bouley (Barclays): Asked about pricing trends and inflation in product categories. Guthrie detailed that tariff-related products are seeing mid-single-digit price increases, while commodity deflation continues to impact certain segments like grass seed and PVC pipe.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will watch closely for (1) continued progress in digital adoption and its impact on organic growth, (2) further margin gains from operational initiatives such as focus branch turnarounds and delivery efficiency, and (3) evidence of sustained market share gains despite end-market softness. Acquisition activity and the ability to pass through tariff-related cost increases will also be key areas of focus.

SiteOne currently trades at $137.94, up from $128.56 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).

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