Agriculture products company SiteOne Landscape Supply (NYSE: SITE) missed Wall Street’s revenue expectations in Q1 CY2026, with sales flat year on year at $940.1 million. Its GAAP loss of $0.60 per share was 24.9% below analysts’ consensus estimates.

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“We are pleased with our first quarter performance as we more than offset the weather and market-related softness in sales volume and delivered Adjusted EBITDA growth with meaningful gross margin improvement and continued tight SG&A management,” said Doug Black, Chairman and CEO of SiteOne.

Company Overview

Known for distributing John Deere tractors and LESCO turf care products, SiteOne Landscape Supply (NYSE: SITE) provides landscaping products and services to professionals, including irrigation, lighting, and nursery supplies.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Luckily, SiteOne’s sales grew at a solid 10.2% compounded annual growth rate over the last five years. Its growth beat the average industrials company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. SiteOne’s recent performance shows its demand has slowed as its annualized revenue growth of 3.8% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs.

This quarter, SiteOne’s $940.1 million of revenue was flat year on year, falling short of Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 5.7% over the next 12 months. While this projection implies its newer products and services will catalyze better top-line performance, it is still below average for the sector.

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Operating Margin

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

SiteOne was profitable over the last five years but held back by its large cost base. Its average operating margin of 6.1% was weak for an industrials business. This result is surprising given its high gross margin as a starting point.

Looking at the trend in its profitability, SiteOne’s operating margin decreased by 4.4 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. SiteOne’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers.

This quarter, SiteOne generated an operating margin profit margin of negative 2.8%, in line with the same quarter last year. This indicates the company’s cost structure has recently been stable.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

SiteOne’s flat EPS over the last five years was below its 10.2% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes.

We can take a deeper look into SiteOne’s earnings to better understand the drivers of its performance. As we mentioned earlier, SiteOne’s operating margin was flat this quarter but declined by 4.4 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For SiteOne, its two-year annual EPS declines of 1.4% show its recent history was to blame for its underperformance over the last five years. These results were bad no matter how you slice the data.

In Q1, SiteOne reported EPS of negative $0.60, in line with the same quarter last year. This print missed analysts’ estimates. Over the next 12 months, Wall Street expects SiteOne’s full-year EPS of $3.37 to grow 24.8%.

Key Takeaways from SiteOne’s Q1 Results

We enjoyed seeing SiteOne beat analysts’ EBITDA expectations this quarter. On the other hand, its revenue missed and its EBITDA guidance fell short of Wall Street’s estimates. Overall, this was a softer quarter. The stock remained flat at $142.00 immediately following the results.

The latest quarter from SiteOne’s wasn’t that good. One earnings report doesn’t define a company’s quality, though, so let’s explore whether the stock is a buy at the current price. We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).