SiteOne Landscape Supply, Inc.

Previous wording

We are the largest and only national full product line wholesale distributor of landscape supplies in the United States and have an established presence in Canada. Our customers are primarily residential and commercial landscape professionals who specialize in the design, installation, and maintenance of lawns, gardens, golf courses, and other outdoor spaces. As of March 30, 2025, we had over 690 branch locations in 45 U.S. states and six Canadian provinces. Through our expansive North American network, we offer a comprehensive selection of approximately 170,000 SKUs, including irrigation supplies, fertilizer and control products (e.g., herbicides), hardscapes (including pavers, natural stone, and blocks), landscape accessories, nursery goods, outdoor lighting, and ice melt products to green industry professionals. We also provide value-added consultative services to complement our product offerings and to help our customers operate and grow their businesses.

Current wording

We are the largest and only national full product line wholesale distributor of landscape supplies in the United States and have an established presence in Canada. Our customers are primarily residential and commercial landscape professionals who specialize in the design, installation, and maintenance of lawns, gardens, golf courses, and other outdoor spaces. As of June 29, 2025, we had over 680 branch locations in 45 U.S. states and six Canadian provinces. Through our expansive North American network, we offer a comprehensive selection of approximately 170,000 SKUs, including irrigation supplies, fertilizer and control products (e.g., herbicides), hardscapes (including pavers, natural stone, and blocks), landscape accessories, nursery goods, outdoor lighting, and ice melt products to green industry professionals. We also provide value-added consultative services to complement our product offerings and to help our customers operate and grow their businesses.

Previous wording

The first quarter of 2025 continued to present economic challenges driven by trade policies and tariffs, elevated interest rates, inflation concerns, geopolitical conflicts, declining consumer sentiment, and ongoing commodity price deflation. We are evaluating the potential impact of tariffs and considering various actions to mitigate the potential impact, including taking measures to control costs, evaluating operational and supply chain strategies, and implementing pricing actions. In addition, the current macroeconomic environment has weakened consumer confidence and discretionary spend leading to demand uncertainty in the repair and upgrade and new construction end markets. While we believe our commercial initiatives drove market share gains during the three months ended March 30, 2025, we anticipate sustained pressure on Net sales growth and Net income for the foreseeable future. For the three months ended March 30, 2025, Organic Daily Sales declined 1% compared to the prior year period, primarily due to a later start to the spring selling season, lower prices for commodity products, and a softer repair and remodel end market. Overall, price deflation reduced Organic Daily Sales by approximately 1%. For the three months ended March 30, 2025, we achieved Net sales growth of 4% primarily driven by acquisitions. The negative pricing trend that began in the second half of the 2023 Fiscal Year has moderated and is expected to improve through the remainder of 2025, with the impact of pricing projected to be flat to up 1% for the 2025 Fiscal Year. Gross margin decreased 30 basis points for the three months ended March 30, 2025 primarily due to lower price realization and higher freight expense, partially offset by positive contributions from acquisitions. Selling, general and administrative expenses (“SG&A”) increased 5% for the three months ended March 30, 2025, primarily reflecting the impact of acquisitions. Net loss attributable to SiteOne was $27.3 million for the three months ended March 30, 2025, compared to $19.3 million for the same period of 2024, primarily due to higher SG&A, partially offset by the increase in Net sales. Net cash used in operating activities was $129.6 million for the three months ended March 30, 2025, compared to $99.3 million for the three months ended March 31, 2024, primarily driven by our early purchases of inventory ahead of potential tariff impacts.

Current wording

The second quarter of 2025 continued to present economic challenges driven by trade policies and tariffs, elevated interest rates, housing affordability, inflation concerns, geopolitical conflicts, weakened consumer sentiment, and persistent PVC pipe and grass seed price deflation. We are monitoring the impacts of tariffs and the associated trade agreements. In response, we have implemented, and will continue to implement, various actions to mitigate the effects. These actions include controlling costs, pricing measures, and operational and supply chain enhancements. While we saw solid growth in the maintenance end market and our commercial initiatives drove market share gains during the first half of 2025, a challenging macroeconomic environment has continued to diminish consumer confidence and discretionary spending, leading to softer demand in the new residential construction and repair and upgrade end markets. We therefore anticipate continued pressure on Net sales growth and Net income for the foreseeable future. For the three and six months ended June 29, 2025, we achieved Net sales growth of 3% and 4%, respectively, primarily driven by acquisitions. Organic Daily Sales were flat for the three and six months ended June 29, 2025, respectively, as solid growth in the maintenance end market was offset by softer demand in the new residential construction and repair and upgrade end markets. Overall, we estimate pricing had a negligible impact on Organic Daily Sales for the three months ended June 29, 2025 and reduced Organic Daily Sales by approximately 1% for the six months ended June 29, 2025. The negative pricing trend that began in the second half of the 2023 Fiscal Year has moderated and is expected to improve through the remainder of 2025, with the impact of pricing projected to be approximately flat for the 2025 Fiscal Year. Gross margin increased 30 basis points for the three months ended June 29, 2025, primarily due to improved price realization, benefits from our initiatives, and a positive contribution from acquisitions with higher gross margins. Gross margin was flat for the six months ended June 29, 2025. Selling, general and administrative expenses (“SG&A”) increased 2% and 3% for the three and six months ended June 29, 2025, respectively, primarily reflecting the impact of acquisitions. SG&A as a percentage of Net sales decreased 40 basis points to 23.9% for the three months ended June 29, 2025 compared to 24.3% for the three months ended June 30, 2024, and decreased 20 basis points to 28.8% for the six months ended June 29, 2025 compared to 29.0% for the six months ended June 30, 2024. The improvement in SG&A as a percentage of Net sales for the three and six months ended June 29, 2025 is primarily due to our actions to increase efficiency and better align operating costs with the current market demand. Net income attributable to SiteOne increased to $129.0 million and $101.7 million for the three and six months ended June 29, 20…

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Previous wording

Looking forward, the trend of consumers spending more time at home and investing in their outdoor living spaces is expected to continue, although at lower levels compared to the three-year pandemic peak. Increases in home values, lack of affordable new homes, and elevated mortgage interest rates for prolonged periods have resulted in homeowners staying in their homes for longer periods and, in the first quarter of 2025, we saw further constraint on affordability and increasingly weaker new home demand as a result of the current macroeconomic environment. However, the long-term outlook for the landscape supply industry remains strong, driven by favorable population trends, housing demand, and continued interest in outdoor living. We remain confident in the landscape supply industry growth opportunities and our ability to continue providing our customers, suppliers, and shareholders with exceptional value. We are the only national full product line wholesale distributor of landscape supplies in the United States. With a robust acquisition pipeline and a flexible business model, we remain committed to our strategic and operational initiatives and will continue to focus on driving growth organically and through acquisitions while gaining market share and delivering margin expansion by leveraging our scale, resources, and capabilities. Our balanced end market mix, broad product portfolio, geographic coverage, and commercial and operational initiatives provide us with multiple opportunities to achieve growth and position us to be resilient in softer markets.

Current wording

Looking forward, the trend of consumers spending more time at home and investing in their outdoor living spaces is expected to continue. Increases in home values, lack of affordable new homes, rising insurance costs, and elevated mortgage interest rates for prolonged periods have resulted in existing homeowners remaining in place for longer periods. In the first half of 2025, constraint on affordability continued with increasingly weaker new and existing home demand as a result of the current macroeconomic environment. However, the long-term outlook for the landscape supply industry remains strong, driven by favorable population trends, housing demand, and continued interest in outdoor living. We remain confident in the landscape supply industry growth opportunities and our ability to continue providing our customers, suppliers, and shareholders with exceptional value. We are the only national full product line wholesale distributor of landscape supplies in the United States. With a robust acquisition pipeline and a flexible business model, we remain committed to our strategic and operational initiatives and will continue to focus on driving growth organically and through acquisitions while gaining market share and delivering margin expansion by leveraging our scale, resources, and capabilities. Our balanced end market mix, broad product portfolio, geographic coverage, and commercial and operational initiatives provide us with multiple opportunities to achieve growth and position us to be resilient in softer markets.

Previous wording

As we continue to navigate through the current uncertainty presented by market and economic conditions, we believe that we are prepared to meet the challenges ahead due to our well-balanced business, strong financial condition, dedicated and experienced teams, and focused business strategy. We continue to focus on cost control and gross margin management. Our balance sheet and liquidity position provide the flexibility to operate effectively and execute our growth strategy, as well as complete share repurchases through the evolving market conditions. We continue to closely monitor the impact on our business and the related risks and uncertainties of tariffs, inflation, interest rates, and consumer sentiment. These conditions are beyond our control, and we cannot estimate with certainty the full extent of their impact on our business, results of operations, cash flows, and/or financial condition. To mitigate the effects of these conditions, we may take actions that alter our business operations if required or that we determine are in the best interests of our associates, customers, suppliers, and shareholders. The forward-looking statements in this Business Environment and Trends section are subject to significant risks and uncertainties. See Part I, Item 1A. - “Risk Factors”, in our Annual Report on Form 10-K for the 2024 Fiscal Year for a discussion of the various risks that could have a material adverse effect on our reputation, business, financial position, results of operations, and cash flows.

Current wording

As we continue to navigate through the current uncertainties presented by volatile market and economic conditions, we believe that we are prepared to meet the challenges ahead due to our well-balanced business, strong financial condition, dedicated and experienced teams, and focused business strategy. We continue to execute our disciplined cost control and gross margin management. Our balance sheet and liquidity position provide us the flexibility to operate effectively and execute our growth strategy, as well as to complete share repurchases through the evolving market conditions. We continue to closely monitor the impact on our business and the related risks and uncertainties of tariffs, interest rates, inflation, and consumer sentiment. These conditions are beyond our control, and we cannot estimate with certainty the full extent of their impact on our business, results of operations, cash flows, and/or financial condition. To mitigate the effects of these conditions, we may take actions that alter our business operations if required or that we determine are in the best interests of our associates, customers, suppliers, and shareholders. The forward-looking statements in this Business Environment and Trends section are subject to significant risks and uncertainties. See Part I, Item 1A. - “Risk Factors”, in our Annual Report on Form 10-K for the 2024 Fiscal Year for a discussion of the various risks that could have a material adverse effect on our reputation, business, financial position, results of operations, and cash flows.

Previous wording

Our financial statements included in this report have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). Our fiscal year is a 52- or 53-week period ending on the Sunday nearest to December 31 in each year. Our fiscal years ending December 28, 2025 (the “2025 Fiscal Year”) and December 29, 2024 (the “2024 Fiscal Year”) both include 52 weeks. Additionally, our fiscal quarters end on the Sunday nearest to March 31, June 30, and September 30, respectively. The three months ended March 30, 2025 and March 31, 2024 both included 13 weeks.

Current wording

Our financial statements included in this report have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). Our fiscal year is a 52- or 53-week period ending on the Sunday nearest to December 31 in each year. Our fiscal years ending December 28, 2025 (the “2025 Fiscal Year”) and December 29, 2024 (the “2024 Fiscal Year”) both include 52 weeks. Additionally, our fiscal quarters end on the Sunday nearest to March 31, June 30, and September 30, respectively. The three months ended June 29, 2025 and June 30, 2024 both included 13 weeks. The six months ended June 29, 2025 and June 30, 2024 both included 26 weeks.

Previous wording

In addition to our organic growth, we continue to grow our business through acquisitions in an effort to better service our existing customers and to attract new customers. These acquisitions have allowed us to further broaden our product lines and extend our geographic reach and leadership positions in local markets. In accordance with GAAP, the results of the acquisitions are reflected in our financial statements from the date of acquisition forward. Additionally, we incur transaction costs in connection with identifying and completing acquisitions as well as ongoing costs as we integrate acquired businesses and seek to achieve synergies. As of March 30, 2025, we completed the following acquisitions since the start of the 2024 Fiscal Year:

Current wording

In addition to organic growth, we continue to grow our business through acquisitions in an effort to better service our existing customers and to attract new customers. These acquisitions have allowed us to further broaden our product lines and extend our geographic reach and leadership positions in local markets. In accordance with GAAP, the results of the acquisitions are reflected in our financial statements from the date of acquisition forward. Additionally, we incur transaction costs in connection with identifying and completing acquisitions as well as ongoing costs as we integrate acquired businesses and seek to achieve synergies. As of June 29, 2025, we completed the following acquisitions since the start of the 2024 Fiscal Year:

Previous wording

In the following discussion of our results of operations, we make comparisons between the three months ended March 30, 2025 and March 31, 2024 (in millions, except percentages).

Current wording

In the following discussion of our results of operations, we make comparisons between the three and six months ended June 29, 2025 and June 30, 2024 (in millions, except percentages).

Previous wording

Net sales for the three months ended March 30, 2025 increased 4% to $939.4 million compared to $904.8 million for the three months ended March 31, 2024 primarily due to contributions from acquisitions. Organic Daily Sales decreased 1% compared to the prior year period due to a later start to the spring selling season, lower prices for commodity products, and a softer repair and remodel end market. Based upon year-over-year price changes in our highest selling SKUs, we estimate price deflation reduced Organic Daily Sales by 1% during the three months ended March 30, 2025. Organic Daily Sales for agronomic products (fertilizer, control products, ice melt, equipment, and other products) increased 7% due to solid demand and strong volume growth for ice melt and pest control products. Organic Daily Sales for landscaping products (irrigation supplies, hardscapes, landscape accessories, nursery goods, and outdoor lighting) decreased 4% reflecting lower prices, a softer repair and remodel end market, and colder weather across most regions. Acquisitions contributed $45.1 million, or 5%, to the Net sales growth for the first quarter of 2025.

Current wording

Net sales for the three months ended June 29, 2025 increased 3% to $1,461.6 million compared to $1,413.9 million for the three months ended June 30, 2024, and increased 4% to $2,401.0 million for the six months ended June 29, 2025 compared to $2,318.7 million for the six months ended June 30, 2024. These increases were primarily due to contributions from acquisitions. Organic Daily Sales were flat in the second quarter and the first half of 2025, as solid growth in the maintenance end market was offset by softer demand in the new residential construction and repair and upgrade end markets. Based upon year-over-year price changes in our highest selling SKUs, we estimate pricing had a negligible impact on Organic Daily Sales for the three months ended June 29, 2025, and reduced Organic Daily Sales by 1% during the six months ended June 29, 2025. Organic Daily Sales for agronomic products (fertilizer, control products, ice melt, equipment, and other products) increased 7% during the three and six months ended June 29, 2025 primarily due to strong demand in the maintenance end market. Organic Daily Sales for landscaping products (irrigation supplies, hardscapes, landscape accessories, nursery goods, and outdoor lighting) decreased 1% in the second quarter of 2025 and decreased 2% in the first half of 2025 reflecting softer demand in the new residential construction and repair and upgrade end markets. Acquisitions contributed $40.9 million, or 3%, to the Net sales growth for the second quarter of 2025 and $86.0 million, or 4%, to the Net sales growth for the six months ended June 29, 2025.

Previous wording

Cost of goods sold for the three months ended March 30, 2025 increased 4% to $629.6 million compared to $603.6 million for the three months ended March 31, 2024. The increase in Cost of goods sold, including Inventory costs, net of supplier incentives and discounts, Freight, handling, and distribution expenses, and Other Cost of goods sold was primarily attributable to acquisitions.

Current wording

Cost of goods sold increased 3% to $930.2 million for the three months ended June 29, 2025 compared to $903.6 million for the three months ended June 30, 2024, and increased 3% to $1,559.8 million for the six months ended June 29, 2025 compared to $1,507.2 million for the six months ended June 30, 2024. The increase in Cost of goods sold, including Inventory costs, net of supplier incentives and discounts, Freight, handling, and distribution expenses, and Other Cost of goods sold was primarily attributable to acquisitions.

Previous wording

Gross profit for the three months ended March 30, 2025 increased 3% to $309.8 million compared to $301.2 million for the three months ended March 31, 2024. Gross profit growth was driven by higher Net sales, including acquisitions. Gross margin decreased 30 basis points to 33.0% for the first quarter of 2025 compared to 33.3% for the first quarter of 2024. The decrease in gross margin is primarily due to lower price realization and higher freight expense, partially offset by positive contributions from acquisitions.

Current wording

Gross profit increased 4% to $531.4 million for the three months ended June 29, 2025 compared to $510.3 million for the three months ended June 30, 2024, and increased 4% to $841.2 million for the six months ended June 29, 2025 compared to $811.5 million for the six months ended June 30, 2024. Gross profit growth was driven by higher Net sales, including acquisitions. Gross margin increased 30 basis points to 36.4% for the second quarter of 2025 as compared to 36.1% for the second quarter of 2024 and remained flat at 35.0% for the six months ended June 29, 2025 and June 30, 2024. The increase in gross margin for the three months ended June 29, 2025 was primarily due to improved price realization, benefits from our initiatives, and a positive contribution from acquisitions with higher gross margins.

Previous wording

SG&A for the three months ended March 30, 2025 increased 5% to $343.2 million compared to $327.7 million for the three months ended March 31, 2024. SG&A as a percentage of Net sales increased 30 basis points to 36.5% for the first quarter of 2025 compared to 36.2% for the first quarter of 2024. The increase in SG&A, including Compensation, Facility, and Depreciation and amortization expenses was primarily due to the impact of acquisitions with higher operating costs.

Current wording

SG&A increased 2% to $349.1 million for the three months ended June 29, 2025 compared to $343.8 million for the three months ended June 30, 2024, and increased 3% to $692.3 million for the six months ended June 29, 2025 compared to $671.5 million for the six months ended June 30, 2024. SG&A as a percentage of Net sales decreased 40 basis points to 23.9% for the three months ended June 29, 2025 compared to 24.3% for the three months ended June 30, 2024, and decreased 20 basis points to 28.8% for the six months ended June 29, 2025 compared to 29.0% for the six months ended June 30, 2024. The increase in SG&A, including Compensation, Facility, and Depreciation and amortization expenses was primarily due to the impact of acquisitions with higher operating costs. The improvement in SG&A as a percentage of Net sales for the three and six months ended June 29, 2025 reflected our actions to increase efficiency and better align operating costs with the current market demand.

Previous wording

Interest and other non-operating expenses, net increased $0.7 million to $7.4 million for the three months ended March 30, 2025 from $6.7 million for the three months ended March 31, 2024. The increase in interest expense was primarily due to higher average borrowings during the first quarter of 2025 as compared to the first quarter of 2024.

Current wording

Interest and other non-operating expenses, net increased $1.3 million to $10.3 million for the three months ended June 29, 2025 compared to $9.0 million for the three months ended June 30, 2024, and increased $2.0 million to $17.7 million for the six months ended June 29, 2025 compared to $15.7 million for the six months ended June 30, 2024. The increase in interest expense for the three and six months ended June 29, 2025 was primarily due to the maturity of the interest rate swaps on March 23, 2025.

Previous wording

Income tax benefit was $9.4 million for the three months ended March 30, 2025 as compared to $9.7 million for the three months ended March 31, 2024. The effective tax rate was 25.5% for the first quarter of 2025 compared to 33.4% for the first quarter of 2024. The change in the effective tax rate was primarily due to a decrease in the amount of excess tax benefits from stock-based compensation recognized as a component of Income tax benefit in the Consolidated Statements of Operations. Tax deficiencies of $0.3 million were recognized for the first quarter of 2025 as compared to excess tax benefits of $2.3 million for the first quarter of 2024.

Current wording

Income tax expense was $35.6 million for the six months ended June 29, 2025 as compared to $30.3 million for the six months ended June 30, 2024. The effective tax rate was 25.4% for the six months ended June 29, 2025 compared to 23.0% for the six months ended June 30, 2024. The increase in the effective tax rate was primarily due to a decrease in the amount of excess tax benefits from stock-based compensation recognized as a component of Income tax expense in the Consolidated Statements of Operations. Tax deficiencies of $0.3 million were recognized for the six months ended June 29, 2025 as compared to excess tax benefits of $2.8 million for the six months ended June 30, 2024.

Previous wording

(e) Adjusted EBITDA excludes any earnings or loss of acquisitions prior to their respective acquisition dates for all periods presented. Adjusted EBITDA includes Adjusted EBITDA attributable to non-controlling interest of $0.3 million for the first quarter of 2025, and $0.8 million, $0.8 million, and $0.9 million for the fourth, third, and second quarter of 2024, respectively.

Current wording

(e) Adjusted EBITDA excludes any earnings or loss of acquisitions prior to their respective acquisition dates for all periods presented. Adjusted EBITDA includes Adjusted EBITDA attributable to non-controlling interest of $1.8 million and $0.3 million for the second and first quarter of 2025, respectively, and $0.8 million, $0.8 million, and $0.9 million for the fourth, third, and second quarter of 2024, respectively.

Previous wording

In October 2022, our Board of Directors approved a share repurchase authorization for up to $400.0 million of our common stock. We intend to purchase shares under the repurchase authorization from time to time on the open market at the discretion of management, subject to strategic considerations, market conditions, and other factors. The share repurchase authorization does not have an expiration date and may be amended, suspended, or terminated by our Board of Directors at any time. During the three months ended March 30, 2025, we repurchased 28,709 shares of our common stock at an average price per share of $119.80. As of March 30, 2025, the dollar value of shares that may yet be purchased under the share repurchase authorization was $308.5 million.

Current wording

In October 2022, our Board of Directors approved a share repurchase authorization for up to $400.0 million of our common stock. We intend to purchase shares under the repurchase authorization from time to time on the open market at the discretion of management, subject to strategic considerations, market conditions, and other factors. The share repurchase authorization does not have an expiration date and may be amended, suspended, or terminated by our Board of Directors at any time. During the six months ended June 29, 2025, we repurchased 494,609 shares of our common stock at an average price per share of $116.71. As of June 29, 2025, the dollar value of shares that may yet be purchased under the share repurchase authorization was $254.3 million.

Previous wording

Our borrowing base capacity under the ABL Facility was $467.7 million as of March 30, 2025, after giving effect to $108.5 million of revolving credit loans under the ABL Facility and outstanding letters of credit of $23.8 million. Our borrowing base capacity under the ABL Facility was $581.2 million as of December 29, 2024, after giving effect to outstanding letters of credit of $18.8 million. As of March 30, 2025, we had total cash and cash equivalents of $56.6 million, total gross long-term debt of $507.9 million, and total finance lease obligations (excluding interest) of $134.0 million.

Current wording

Our borrowing base capacity under the ABL Facility was $499.3 million as of June 29, 2025, after giving effect to $78.5 million of revolving credit loans under the ABL Facility and outstanding letters of credit of $22.2 million. Our borrowing base capacity under the ABL Facility was $581.2 million as of December 29, 2024, after giving effect to outstanding letters of credit of $18.8 million. As of June 29, 2025, we had total cash and cash equivalents of $78.6 million, total gross long-term debt of $474.5 million, and total finance lease obligations (excluding interest) of $140.3 million.

Previous wording

Working capital was $1,006.2 million as of March 30, 2025, an increase of $97.4 million compared to $908.8 million as of December 29, 2024. The change in working capital was primarily attributable to the seasonality of our business and the early purchases of inventory ahead of potential tariffs.

Current wording

Working capital was $1,061.7 million as of June 29, 2025, an increase of $152.9 million compared to $908.8 million as of December 29, 2024. The change in working capital was primarily attributable to the seasonality of our business and the early purchases of inventory ahead of tariffs.

Previous wording

Our gross long-term debt balance increased $114.6 million since December 29, 2024. This increase was primarily attributable to funding the seasonal increase in our working capital and early inventory purchases as noted above. We had current maturities on our long-term debt of $3.9 million, which related to the term loan facility. The projected interest payments on our debt only pertain to obligations and agreements outstanding as of March 30, 2025 and expected payments for agent administration fees. The projected interest payments are calculated for future periods through maturity dates of our long-term debt using interest rates in effect as of March 30, 2025. Certain of these projected interest payments may differ in the future based on changes in floating interest rates or other factors and events, including our entry into interest rate swap contracts and amendments of the term loan facility and the ABL Facility. The total amount of interest on long-term debt increased $8.1 million since December 29, 2024 to $139.3 million, primarily due to the increase in borrowings under the ABL facility. Refer to “Note 9. Long-Term Debt” in the notes to the consolidated financial statements for further information regarding our debt instruments.

Current wording

Our gross long-term debt balance increased $81.2 million since December 29, 2024. This increase was primarily attributable to funding the seasonal increase in our working capital and early inventory purchases as noted above. We had current maturities on our long-term debt of $3.9 million, which related to the term loan facility. The projected interest payments on our debt only pertain to obligations and agreements outstanding as of June 29, 2025 and expected payments for agent administration fees. The projected interest payments are calculated for future periods through maturity dates of our long-term debt using interest rates in effect as of June 29, 2025. Certain of these projected interest payments may differ in the future based on changes in floating interest rates or other factors and events, including our entry into interest rate swap contracts and amendments of the term loan facility and the ABL Facility. The total amount of interest on long-term debt decreased $3.7 million since December 29, 2024 to $127.5 million, primarily due to a decrease in the interest rate on the term loan facility. Refer to “Note 9. Long-Term Debt” in the notes to the consolidated financial statements for further information regarding our debt instruments.

Previous wording

Net cash used in operating activities for the three months ended March 30, 2025 was $129.6 million compared to $99.3 million for the three months ended March 31, 2024. The increase was primarily driven by a higher seasonal investment in inventory reflecting earlier purchases ahead of potential tariff impacts.

Current wording

Net cash provided by operating activities for the six months ended June 29, 2025 was $7.1 million compared to $48.1 million for the six months ended June 30, 2024. The decrease was primarily driven by a higher seasonal investment in inventory reflecting earlier purchases ahead of tariff impacts.

Previous wording

Net cash used in investing activities was $21.0 million for the three months ended March 30, 2025 compared to $7.3 million for the three months ended March 31, 2024. The increase reflected higher acquisition investments and capital expenditures in the first three months of 2025 compared to the same period of 2024. Capital expenditures were $14.8 million for the first three months of 2025 compared to $8.9 million for the same period of 2024 due to increased investment in branch improvements and branch equipment.

Current wording

Net cash used in investing activities was $37.9 million for the six months ended June 29, 2025 compared to $119.8 million for the six months ended June 30, 2024. The decrease reflects lower acquisition investments in the first six months of 2025 compared to the same period of 2024. Capital expenditures were $29.1 million for the first six months of 2025 compared to $21.0 million for the same period of 2024 due to increased investments in branch locations.

Previous wording

Net cash provided by financing activities was $100.0 million for the three months ended March 30, 2025 compared to $65.7 million for the three months ended March 31, 2024. The increase primarily reflected higher borrowings under the ABL Facility to fund the seasonal increase in working capital including the earlier purchases of inventory ahead of potential tariffs.

Current wording

Net cash provided by financing activities was $1.3 million for the six months ended June 29, 2025 compared to $61.4 million for the six months ended June 30, 2024. The decrease primarily reflected lower borrowings under the ABL Facility to fund our acquisition investments during the first six months of 2025 compared to the same period of 2024.

Previous wording

Landscape Holding and Landscape, as borrowers (collectively, the “Borrowers”), entered into the Fifth Amendment to the Amended and Restated Credit Agreement, the (“Fifth Amendment”), dated as of March 23, 2021, with JPMorgan Chase Bank, N.A. (the “New Agent”), as administrative agent and collateral agent, the several banks and other financial institutions party thereto, and certain other parties party thereto from time to time. The Fifth Amendment amended and restated the Amended and Restated Credit Agreement, dated as of April 29, 2016, among the Borrowers, the lenders from time to time party thereto, and UBS AG, Stamford Branch (the “Existing Agent”) as administrative agent and collateral agent (as amended prior to March 23, 2021, the “Existing Credit Agreement” and, as so amended and restated pursuant to the Fifth Amendment, the “Second Amended and Restated Credit Agreement”) in order to, among other things, incur $325.0 million of term loans (the “New Term Loans”).

Current wording

Landscape Holding and Landscape, as borrowers (collectively, the “Borrowers”), entered into the Fifth Amendment to the Amended and Restated Credit Agreement, the (“Fifth Amendment”), dated as of March 23, 2021, with JPMorgan Chase Bank, N.A., as administrative agent and collateral agent, the several banks and other financial institutions party thereto, and certain other parties party thereto from time to time. The Fifth Amendment amended and restated the Amended and Restated Credit Agreement, dated as of April 29, 2016, among the Borrowers, the lenders from time to time party thereto, and UBS AG, Stamford Branch as administrative agent and collateral agent (as amended prior to March 23, 2021, the “Existing Credit Agreement” and, as so amended and restated pursuant to the Fifth Amendment, the “Second Amended and Restated Credit Agreement”) to, among other things, incur $325.0 million of term loans (the “New Term Loans”).

Previous wording

On July 2, 2024, Landscape Holding and Landscape entered into the Second Amendment that amends and restates the Second Amended and Restated Credit Agreement, dated as of March 23, 2021. The Second Amendment provides for, among other things, an aggregate principal amount of approximately $392.7 million in Tranche B Term Loans, and makes certain other changes to the existing credit agreement. Proceeds of the Tranche B Term Loans were used, among other things, (i) to repay in full the term loans outstanding immediately prior to the effectiveness of the Second Amendment, (ii) to repay certain loans outstanding under the ABL Facility, and (iii) to pay fees, costs, and expenses related to the foregoing transactions. The Tranche B Term Loans bear interest, at Landscape Holding’s option, at either (i) an adjusted Term SOFR rate plus an applicable margin equal to 1.75% (with a Term SOFR floor of 0.50%) or (ii) an alternative base rate plus an applicable margin equal to 0.75%. Voluntary prepayments of the Tranche B Term Loans are permitted at any time, in minimum principal amounts, without premium or penalty, unless in connection with certain repricing transactions that occur within the first six months after the date of effectiveness of the Second Amendment. The Tranche B Term Loans will mature on March 22, 2030. The interest rate on the outstanding balance of the Tranche B Term Loans was 6.06406% as of March 30, 2025.

Current wording

On July 2, 2024, Landscape Holding and Landscape entered into the Second Amendment that amends and restates the Second Amended and Restated Credit Agreement, dated as of March 23, 2021. The Second Amendment provides for, among other things, an aggregate principal amount of approximately $392.7 million in Tranche B Term Loans, and makes certain other changes to the existing credit agreement. Proceeds of the Tranche B Term Loans were used, among other things, (i) to repay in full the term loans outstanding immediately prior to the effectiveness of the Second Amendment, (ii) to repay certain loans outstanding under the ABL Facility, and (iii) to pay fees, costs, and expenses related to the foregoing transactions. The Tranche B Term Loans bear interest, at Landscape Holding’s option, at either (i) an adjusted Term SOFR rate plus an applicable margin equal to 1.75% (with a Term SOFR floor of 0.50%) or (ii) an alternative base rate plus an applicable margin equal to 0.75%. Voluntary prepayments of the Tranche B Term Loans are permitted at any time, in minimum principal amounts, without premium or penalty, unless in connection with certain repricing transactions that occur within the first six months after the date of effectiveness of the Second Amendment. The Tranche B Term Loans will mature on March 22, 2030. The interest rate on the outstanding balance of the Tranche B Term Loans was 6.06134% and 6.27397% as of June 29, 2025 and December 29, 2024, respectively.

Previous wording

Landscape Holding and Landscape (collectively, the “ABL Borrowers”) are parties to the credit agreement dated December 23, 2013 (as amended by the First Amendment to the Credit Agreement, dated June 13, 2014, the Second Amendment to the Credit Agreement, dated January 26, 2015, the Third Amendment to the Credit Agreement, dated February 13, 2015, the Fourth Amendment to the Credit Agreement, dated October 20, 2015, the Omnibus Amendment to the Credit Agreement, dated May 24, 2017, the Sixth Amendment to the Credit Agreement, dated February 1, 2019, and the Seventh Amendment to the Credit Agreement, dated July 22, 2022, the “ABL Credit Agreement”) providing for an asset-based credit facility (the “ABL Facility”) of up to $600.0 million, subject to borrowing base availability, with a maturity date of July 22, 2027. The ABL Facility is secured by a first lien on the inventory and receivables of the ABL Borrowers. The ABL Facility is guaranteed by SiteOne Landscape Supply Bidco, Inc. (“Bidco”), an indirect wholly-owned subsidiary of the Company, and each direct and indirect wholly-owned U.S. restricted subsidiary of Landscape. Availability is determined using borrowing base calculations of eligible inventory and receivable balances less the current outstanding ABL Facility and letters of credit balances.

Current wording

Landscape Holding and Landscape (collectively, the “ABL Borrowers”) are parties to the credit agreement dated December 23, 2013 (as amended by the First Amendment to the Credit Agreement, dated June 13, 2014, the Second Amendment to the Credit Agreement, dated January 26, 2015, the Third Amendment to the Credit Agreement, dated February 13, 2015, the Fourth Amendment to the Credit Agreement, dated October 20, 2015, the Omnibus Amendment to the Credit Agreement, dated May 24, 2017, the Sixth Amendment to the Credit Agreement, dated February 1, 2019, and the Seventh Amendment to the Credit Agreement, dated July 22, 2022, the “ABL Credit Agreement”) providing for an asset-based credit facility (the “ABL Facility”) of up to $600.0 million, subject to borrowing base availability, with a maturity date of July 22, 2027. The ABL Facility is secured by a first lien on the inventory and receivables of the ABL Borrowers. The ABL Facility is guaranteed by SiteOne Landscape Supply Bidco, Inc. an indirect wholly-owned subsidiary of the Company, and each direct and indirect wholly-owned U.S. restricted subsidiary of Landscape. Availability is determined using borrowing base calculations of eligible inventory and receivable balances less the current outstanding ABL Facility and letters of credit balances.

Previous wording

On July 22, 2022, the ABL Borrowers entered into the Seventh Amendment to the ABL Credit Agreement (the “Seventh Amendment”). The Seventh Amendment amended and restated the ABL Credit Agreement in order to, among other things, (i) increase the aggregate principal amount of the commitments to $600.0 million, (ii) extend the final scheduled maturity of the revolving credit facility to July 22, 2027, (iii) establish an alternate rate of interest to the LIBOR rate, (iv) replace the administrative and collateral agent, and (v) make such other changes as agreed among the ABL Borrowers and the lenders. Proceeds of the initial borrowings under the ABL Credit Agreement on the closing date of the Seventh Amendment were used, among other things, (i) to repay in full the loans outstanding under the ABL Credit Agreement immediately prior to the effectiveness of the Seventh Amendment, (ii) to pay fees and expenses related to the Seventh Amendment and the ABL Credit Agreement, and (iii) for working capital and other general corporate purposes.

Current wording

On July 22, 2022, the ABL Borrowers entered into the Seventh Amendment to the ABL Credit Agreement (the “Seventh Amendment”). The Seventh Amendment amended and restated the ABL Credit Agreement to, among other things, (i) increase the aggregate principal amount of the commitments to $600.0 million, (ii) extend the final scheduled maturity of the revolving credit facility to July 22, 2027, (iii) establish an alternate rate of interest to the LIBOR rate, (iv) replace the administrative and collateral agent, and (v) make such other changes as agreed among the ABL Borrowers and the lenders. Proceeds of the initial borrowings under the ABL Credit Agreement on the closing date of the Seventh Amendment were used, among other things, (i) to repay in full the loans outstanding under the ABL Credit Agreement immediately prior to the effectiveness of the Seventh Amendment, (ii) to pay fees and expenses related to the Seventh Amendment and the ABL Credit Agreement, and (iii) for working capital and other general corporate purposes.

Previous wording

The weighted average interest rate on outstanding balances under the ABL Facility was 5.54866% as of March 30, 2025. There was no outstanding balance under the ABL Facility as of December 29, 2024. The commitment fees on unfunded amounts were 0.25% as of March 30, 2025 and December 29, 2024.

Current wording

The weighted average interest rate on outstanding balances under the ABL Facility was 5.66805% as of June 29, 2025. There was no outstanding balance under the ABL Facility as of December 29, 2024. The commitment fees on unfunded amounts were 0.25% as of June 29, 2025 and December 29, 2024.

Previous wording

Loans under the Devil Mountain ABL facility bear interest at either (i) an adjusted term SOFR rate equal to term SOFR plus an applicable margin of 1.90% or 2.10% or (ii) an alternate base rate plus an applicable margin of 0.80% or 1.00%, subject to a 0.20% reduction when the Fixed Charge Coverage Ratio (as defined in the Devil Mountain ABL Facility) is greater than 2.00:1.00. Additionally, undrawn commitments under the Devil Mountain ABL Facility bear a commitment fee of 0.25% on the actual undrawn portion of the commitments under the Devil Mountain ABL Facility based upon the daily utilization for the previous quarter. The interest rate on the outstanding balance under the Devil Mountain ABL Facility was 6.22268% and 6.65265% as of March 30, 2025 and December 29, 2024, respectively.

Current wording

Loans under the Devil Mountain ABL Facility bear interest at either (i) an adjusted term SOFR rate equal to term SOFR plus an applicable margin of 1.90% or 2.10% or (ii) an alternate base rate plus an applicable margin of 0.80% or 1.00%, subject to a 0.20% reduction when the Fixed Charge Coverage Ratio (as defined in the Devil Mountain ABL Facility) is greater than 2.00:1.00. Additionally, undrawn commitments under the Devil Mountain ABL Facility bear a commitment fee of 0.25% on the actual undrawn portion of the commitments under the Devil Mountain ABL Facility based upon the daily utilization for the previous quarter. The interest rate on the outstanding balance under the Devil Mountain ABL Facility was 6.22413% and 6.65265% as of June 29, 2025 and December 29, 2024, respectively.

Previous wording

We are subject to interest rate risk with regard to existing and future issuances of debt. We have utilized interest rate swap contracts to reduce our exposure to fluctuations in variable interest rates for future interest payments on existing debt. Prior to the termination of interest rate swaps 7, 8, and 9 upon maturity on March 23, 2025, we were party to interest rate swap contracts to convert the variable interest rate to a fixed interest rate on portions of the borrowings under the term loans.

Current wording

We are subject to interest rate risk with regard to existing and future issuances of debt. We have, in the past, utilized interest rate swap contracts to reduce our exposure to fluctuations in variable interest rates for future interest payments on existing debt. Prior to the termination of interest rate swaps 7, 8, and 9 upon maturity on March 23, 2025, we were party to interest rate swap contracts to convert the variable interest rate to a fixed interest rate on portions of the borrowings under the term loans.

Previous wording

During the first quarter of 2021, we amended and restructured certain of our interest rate swap contracts using a strategy referred to as a “blend and extend”. In a blend and extend arrangement, the liability position of the existing interest rate swap arrangement is blended into the amended or new interest rate swap arrangement and the term to maturity of the hedged position is extended. We reclassified $5.9 million from Accrued liabilities and Other long-term liabilities to long-term debt with $1.5 million classified as Long-term debt, current portion and $4.4 million classified as Long-term debt, less current portion on our Consolidated Balance Sheets for the interest rate swap arrangements executed during the first quarter of 2021 that were determined to be hybrid debt instruments. As of March 30, 2025, there was no outstanding amount as the interest rate swaps were terminated upon maturity on March 23, 2025.

Current wording

During the first quarter of 2021, we amended and restructured certain of our interest rate swap contracts using a “blend and extend”. As a result, we reclassified $5.9 million from Accrued liabilities and Other long-term liabilities to long-term debt with $1.5 million classified as Long-term debt, current portion and $4.4 million classified as Long-term debt, less current portion on our Consolidated Balance Sheets for the interest rate swap arrangements executed during the first quarter of 2021 that were determined to be hybrid debt instruments. As of June 29, 2025, there was no outstanding amount as the interest rate swaps were terminated upon maturity on March 23, 2025.