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 June 28, 2026, we had over 680 branch locations in 45 U.S. states and five Canadian provinces. Through our expansive North American network, we offer a comprehensive selection of approximately 180,000 SKUs, including hardscapes (such as concrete pavers and natural stone), irrigation, agronomics (including fertilizer, seed, control products, and ice melt), landscape accessories, nursery, and outdoor lighting 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 September 27, 2026, we had over 690 branch locations in 45 U.S. states and five Canadian provinces. Through our expansive North American network, we offer a comprehensive selection of approximately 180,000 SKUs, including hardscapes (such as concrete pavers and natural stone), irrigation, agronomics (including fertilizer, seed, control products, and ice melt), landscape accessories, nursery, and outdoor lighting 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 second quarter of 2026 continued to present challenges driven by economic uncertainty and weak consumer sentiment related to current geopolitical conflicts, inflation and affordability concerns, and rising interest rates. Our new residential construction and repair and upgrade end markets further softened during the quarter. Accordingly, we anticipate sustained pressure on Net sales growth and Net income for the foreseeable future. We have taken various actions to mitigate supply chain disruptions and the related impacts to commodity prices, including the implementation of price increases on certain products and measures to offset the effects of rising fuel costs. For the three months ended June 28, 2026, we achieved Net sales growth of 5%, primarily driven by acquisitions. Organic Daily Sales increased 1% for the three months ended June 28, 2026, primarily due to price contribution of approximately 3%, partially offset by softer end market demand. The positive pricing trend that began in the second half of the 2025 Fiscal Year (as defined below) has continued and overall prices are projected to increase approximately 3% for the 2026 Fiscal Year. Gross margin increased 50 basis points for the second quarter primarily due to the benefits of price realization and execution of our commercial initiatives, partially offset by higher freight and distribution costs as a result of fuel inflation, the addition of our fifth distribution center, and deflation in certain commodity products. Selling, general and administrative expenses (“SG&A”) increased 6% for the three months ended June 28, 2026, primarily reflecting the impact of acquisitions. Net income attributable to SiteOne increased to $139.3 million for the three months ended June 28, 2026, compared to $129.0 million for the same period of 2025, primarily due to improved gross margin, partially offset by lower sales volume and higher SG&A. Net cash provided by operating activities was $31.1 million for the six months ended June 28, 2026, compared to $7.1 million for the six months ended June 29, 2025, primarily driven by higher Net income and a positive contribution from working capital changes.

Current wording

The third quarter of 2026 continued to present challenges driven by economic uncertainty and softer consumer sentiment related to current geopolitical conflicts, inflation and affordability concerns, and rapidly increasing interest rates. Our new residential construction and repair and upgrade end markets continued to be challenging during the quarter. Accordingly, we anticipate sustained pressure on Net sales growth and Net income for the foreseeable future. We have taken various actions to mitigate supply chain disruptions and the related impacts to commodity prices, including the implementation of price increases on certain products and measures to offset the effects of rising fuel costs. We have also taken additional cost reduction actions to optimize our operating structure as a result of the lower demand environment. For the three months ended September 27, 2026, we achieved Net sales growth of 3%, primarily driven by acquisitions. Organic Daily Sales decreased 1% for the three months ended September 27, 2026, primarily due to lower sales volume from continued softness in end market demand and a delay in fall applications due to hot and dry weather, partially offset by positive price contribution of approximately 4%. The positive pricing trend that began in the second half of the 2025 Fiscal Year (as defined below) has continued and is projected to remain approximately 4% for the fourth quarter of 2026. Gross margin increased 80 basis points for the third quarter primarily due to strong price realization, including the impact of fuel surcharges, and continued benefits of our commercial initiatives. Selling, general and administrative expenses (“SG&A”) increased 3% for the three months ended September 27, 2026, primarily reflecting the impact of acquisitions, higher healthcare costs, and fuel cost inflation, partially offset by our operational initiatives and continued cost control. Net income attributable to SiteOne increased to $63.9 million for the three months ended September 27, 2026, compared to $59.1 million for the same period of 2025, primarily due to gross margin expansion, partially offset by lower sales volume and higher SG&A. Net cash provided by operating activities was $156.7 million for the nine months ended September 27, 2026, compared to $135.7 million for the nine months ended September 28, 2025, primarily driven by higher Net income and a positive contribution from working capital changes.

Previous 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. Constraint on affordability continues 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. We have a robust acquisition pipeline and a flexible business model. We are 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. In addition, 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, and rising mortgage interest rates for prolonged periods have resulted in existing homeowners remaining in place for longer periods. Constraint on affordability continues 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, the transition from do-it-yourself to hiring the professional contractor, and increasing 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. We have a robust acquisition pipeline and a flexible business model. We are 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. In addition, 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 are prepared to meet the challenges ahead due to our well-balanced business, strong financial condition, dedicated and experienced teams, and focused business strategy. 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 monitor the impact on our business and the related risks and uncertainties of geopolitical conflicts, interest rate changes, tariffs, labor market conditions, and workforce availability, as well as end market demand and commodity prices. 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 fiscal year ended December 28, 2025 (the “2025 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 uncertainty presented by market conditions, 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. 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 monitor the impact on our business and the related risks and uncertainties of geopolitical conflicts, interest rate changes, tariffs, labor market conditions, and workforce availability, as well as end market demand and commodity prices. 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 fiscal year ended December 28, 2025 (the “2025 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 year ending January 3, 2027 (the “2026 Fiscal Year”) includes 53 weeks and our 2025 Fiscal Year included 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 28, 2026 and June 29, 2025 both included 13 weeks. The six months ended June 28, 2026 and June 29, 2025 both included 26 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 year ending January 3, 2027 (the “2026 Fiscal Year”) includes 53 weeks and our 2025 Fiscal Year included 52 weeks. Additionally, our fiscal quarters end on the Sunday nearest to March 31, June 30, and September 30, respectively. The three months ended September 27, 2026 and September 28, 2025 both included 13 weeks. The nine months ended September 27, 2026 and September 28, 2025 both included 39 weeks.

Previous wording

•In January 2025, our then majority-owned subsidiary, Devil Mountain Wholesale Nursery, LLC (“Devil Mountain”), acquired the assets and assumed the liabilities of Pacific Nurseries, LLC (“Pacific Nurseries”). With one location in Colma, California, Pacific Nurseries is a wholesale distributor of nursery products to landscape professionals.

Current wording

•In January 2025, our then majority-owned subsidiary, Devil Mountain, acquired the assets and assumed the liabilities of Pacific Nurseries, LLC (“Pacific Nurseries”). With one location in Colma, California, Pacific Nurseries is a wholesale distributor of nursery products to landscape professionals.

Previous wording

In the following discussion of our results of operations, we make comparisons between the three and six months ended June 28, 2026 and June 29, 2025 (in millions, except percentages).

Current wording

In the following discussion of our results of operations, we make comparisons between the three and nine months ended September 27, 2026 and September 28, 2025 (in millions, except percentages).

Previous wording

Net sales for the three months ended June 28, 2026 increased 5% to $1,530.7 million, compared to $1,461.6 million for the three months ended June 29, 2025, and increased 3% to $2,470.8 million for the six months ended June 28, 2026, compared to $2,401.0 million for the six months ended June 29, 2025. These increases were due primarily to contributions from acquisitions. Organic Daily Sales increased 1% in the second quarter and were flat in the first half of 2026 due primarily to price inflation in response to rising costs and our commercial initiatives, partially offset by softer end market demand. We estimate price increases contributed 3% for the three and six months ended June 28, 2026 based upon year-over-year price changes in our highest selling SKUs. Organic Daily Sales for agronomic products (fertilizer, control products, ice melt, equipment, and other products) increased 5% during the second quarter and 4% during the first half of 2026 due primarily to price inflation in response to rising costs. Organic Daily Sales for landscaping products (irrigation supplies, hardscapes, landscape accessories, nursery goods, and outdoor lighting) were flat during the second quarter and decreased 1% during the first half of 2026 due to weak demand in the new residential construction and repair and upgrade end markets. Acquisitions contributed $49.2 million, or 3%, to the Net sales growth for the second quarter of 2026 and $61.6 million, or 3%, to the Net sales growth for the six months ended June 28, 2026.

Current wording

Net sales for the three months ended September 27, 2026 increased 3% to $1,291.1 million, compared to $1,258.2 million for the three months ended September 28, 2025, and increased 3% to $3,761.9 million for the nine months ended September 27, 2026, compared to $3,659.2 million for the nine months ended September 28, 2025. These increases were due primarily to contributions from acquisitions. Organic Daily Sales decreased 1% for the third quarter as lower sales volume amid continued softness in end market demand and a delay in fall applications due to hot and dry weather conditions more than offset higher price inflation. Organic Daily Sales were flat for the nine months ended September 27, 2026 as price increases were offset by lower sales volume. We estimate price increases contributed approximately 4% for the three and nine months ended September 27, 2026 based upon year-over-year price changes in our highest selling SKUs. Organic Daily Sales for agronomic products (fertilizer, control products, ice melt, equipment, and other products) decreased 1% during the third quarter due to delayed fall applications, and increased 2% for the nine months ended September 27, 2026 due primarily to price inflation in response to rising costs. Organic Daily Sales for landscaping products (irrigation supplies, hardscapes, landscape accessories, nursery goods, and outdoor lighting) were flat during the third quarter and decreased 1% during the nine months ended September 27, 2026 due to weak demand in the new residential construction and repair and upgrade end markets. Acquisitions contributed $39.7 million, or 3%, to the Net sales growth for the third quarter of 2026 and $101.3 million, or 3%, to the Net sales growth for the nine months ended September 27, 2026.

Previous wording

Cost of goods sold increased 4% to $966.2 million for the three months ended June 28, 2026, compared to $930.2 million for the three months ended June 29, 2025, and increased 2% to $1,587.5 million for the six months ended June 28, 2026, compared to $1,559.8 million for the six months ended June 29, 2025. The increase in Cost of goods sold, including Inventory costs, net of supplier incentives and discounts, and Freight, handling, and distribution expenses, was primarily attributable to acquisitions as well as fuel inflation and the addition of our fifth distribution center that commenced operations in the fourth quarter of 2025.

Current wording

Cost of goods sold increased 1% to $832.6 million for the three months ended September 27, 2026, compared to $821.0 million for the three months ended September 28, 2025, and increased 2% to $2,420.1 million for the nine months ended September 27, 2026, compared to $2,380.8 million for the nine months ended September 28, 2025. The increase in Cost of goods sold, including Inventory costs, net of supplier incentives and discounts, and Freight, handling, and distribution expenses, was primarily attributable to acquisitions as well as fuel inflation and the addition of our fifth distribution center that commenced operations in the fourth quarter of 2025.

Previous wording

Gross profit increased 6% to $564.5 million for the three months ended June 28, 2026, compared to $531.4 million for the three months ended June 29, 2025, and increased 5% to $883.3 million for the six months ended June 28, 2026, compared to $841.2 million for the six months ended June 29, 2025. Gross profit growth was primarily driven by higher Net sales and improved price realization. Gross margin increased 50 basis points to 36.9% for the second quarter of 2026, compared to 36.4% for the second quarter of 2025, and increased 70 basis points to 35.7% for the six months ended June 28, 2026, compared to 35.0% for the six months ended June 29, 2025. The increase in gross margin is primarily due to the benefits of price realization and execution of our commercial initiatives, partially offset by higher freight and distribution costs as a result of fuel inflation, the addition of our fifth distribution center, and deflation in certain commodity products.

Current wording

Gross profit increased 5% to $458.5 million for the three months ended September 27, 2026, compared to $437.2 million for the three months ended September 28, 2025, and increased 5% to $1,341.8 million for the nine months ended September 27, 2026, compared to $1,278.4 million for the nine months ended September 28, 2025. Gross profit growth was primarily driven by higher Net sales and improved price realization. Gross margin increased 80 basis points to 35.5% for the third quarter of 2026, compared to 34.7% for the third quarter of 2025, and increased 80 basis points to 35.7% for the nine months ended September 27, 2026, compared to 34.9% for the nine months ended September 28, 2025. The increase in gross margin is primarily due to the benefits of price realization, including the impact of fuel surcharges, and the continued benefits from our commercial initiatives, partially offset by higher freight and distribution costs as a result of fuel inflation and the addition of our fifth distribution center.

Previous wording

SG&A increased 6% to $370.7 million for the three months ended June 28, 2026, compared to $349.1 million for the three months ended June 29, 2025, and increased 4% to $720.6 million for the six months ended June 28, 2026, compared to $692.3 million for the six months ended June 29, 2025. SG&A as a percentage of Net sales increased 30 basis points to 24.2% for the three months ended June 28, 2026, compared to 23.9% for the three months ended June 29, 2025, and increased 40 basis points to 29.2% for the six months ended June 28, 2026, compared to 28.8% for the six months ended June 29, 2025. The increase in SG&A was primarily due to the impact of acquisitions, fuel cost inflation, and higher healthcare costs.

Current wording

SG&A increased 3% to $368.7 million for the three months ended September 27, 2026, compared to $357.4 million for the three months ended September 28, 2025, and increased 4% to $1,089.3 million for the nine months ended September 27, 2026, compared to $1,049.7 million for the nine months ended September 28, 2025. SG&A as a percentage of Net sales increased 20 basis points to 28.6% for the three months ended September 27, 2026, compared to 28.4% for the three months ended September 28, 2025, and increased 30 basis points to 29.0% for the nine months ended September 27, 2026, compared to 28.7% for the nine months ended September 28, 2025. The increase in SG&A was primarily due to the impact of acquisitions, and higher healthcare and fuel costs, as well as lower sales volume, partially offset by our operational initiatives and continued cost control.

Previous wording

Interest and other non-operating expenses, net decreased $0.3 million to $10.0 million for the three months ended June 28, 2026, compared to $10.3 million for the three months ended June 29, 2025, and increased $0.3 million to $18.0 million for the six months ended June 28, 2026, compared to $17.7 million for the six months ended June 29, 2025. The decrease in interest expense for the three months ended June 28, 2026, compared to the three months ended June 29, 2025 was primarily due to lower average interest rates on borrowings during the second quarter of 2026, compared to the second quarter of 2025. The increase in interest expense for the six months ended June 28, 2026, compared to the six months ended June 29, 2025, was primarily due to the maturity of our interest rate swaps in the first quarter of 2025.

Current wording

Interest and other non-operating expenses, net increased $0.4 million to $9.5 million for the three months ended September 27, 2026, compared to $9.1 million for the three months ended September 28, 2025, and increased $0.7 million to $27.5 million for the nine months ended September 27, 2026, compared to $26.8 million for the nine months ended September 28, 2025. The increase in interest expense for the three months ended September 27, 2026, compared to the three months ended September 28, 2025 was primarily due to higher average borrowings during the third quarter of 2026, compared to the third quarter of 2025. The increase in interest expense for the nine months ended September 27, 2026, compared to the nine months ended September 28, 2025, was primarily due to the maturity of our interest rate swaps in the first quarter of 2025.

Previous wording

Income tax expense was $48.3 million for the three months ended June 28, 2026, compared to $45.0 million for the three months ended June 29, 2025. The effective tax rate was 25.7% for the three months ended June 28, 2026, compared to 25.4% for the three months ended June 29, 2025. The increase in the effective tax rate was primarily due to higher state tax expense. There were no excess tax benefits recognized for either the three months ended June 28, 2026 or the three months ended June 29, 2025.

Current wording

Income tax expense was $22.4 million for the three months ended September 27, 2026, compared to $15.5 million for the three months ended September 28, 2025. The effective tax rate was 26.0% for the three months ended September 27, 2026, compared to 20.4% for the three months ended September 28, 2025. 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. There were no excess tax benefits recognized for the three months ended September 27, 2026, compared to $4.0 million for the three months ended September 28, 2025.

Previous wording

Income tax expense was $38.5 million for the six months ended June 28, 2026, compared to $35.6 million for the six months ended June 29, 2025. The effective tax rate was 25.0% for the six months ended June 28, 2026, compared to 25.4% for the six months ended June 29, 2025. The decrease in the effective tax rate was primarily due to an increase 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. Excess tax benefits of $0.2 million were recognized for the six months ended June 28, 2026, compared to tax deficiencies of $0.3 million for the six months ended June 29, 2025.

Current wording

Income tax expense was $60.9 million for the nine months ended September 27, 2026, compared to $51.1 million for the nine months ended September 28, 2025. The effective tax rate was 25.4% for the nine months ended September 27, 2026, compared to 23.6% for the nine months ended September 28, 2025. 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. Excess tax benefits of $0.2 million were recognized for the nine months ended September 27, 2026, compared to $3.7 million for the nine months ended September 28, 2025.

Previous wording

Net income attributable to non-controlling interest decreased $0.2 million to $1.0 million for the three months ended June 28, 2026, compared to $1.2 million for the three months ended June 29, 2025, and decreased $0.1 million to $0.9 million for the six months ended June 28, 2026, compared to $1.0 million for the six months ended June 29, 2025. The changes in Net income attributable to non-controlling interest were primarily due to the acquisition of the remaining 25% interest in Devil Mountain on June 1, 2026.

Current wording

Net income attributable to non-controlling interest decreased $0.4 million to zero for the three months ended September 27, 2026, compared to $0.4 million for the three months ended September 28, 2025, and decreased $0.5 million to $0.9 million for the nine months ended September 27, 2026, compared to $1.4 million for the nine months ended September 28, 2025. The decrease in Net income attributable to non-controlling interest for the three and nine months ended September 27, 2026, compared to the three and nine months ended September 28, 2025 was primarily due to the acquisition of the remaining 25% interest in Devil Mountain on June 1, 2026.

Previous wording

Adjustment of non-controlling interest to redemption value was $(1.0) million for the three months ended June 28, 2026 and $1.6 million for the six months ended June 28, 2026, compared to $1.9 million for the three and six months ended June 29, 2025. The decreases in the adjustment to the carrying amount of the Redeemable non-controlling interest are due to the Company’s acquisition of the remaining 25% interest in Devil Mountain on June 1, 2026.

Current wording

Adjustment of non-controlling interest to redemption value was zero and $1.6 million for the three and nine months ended September 27, 2026, respectively, compared to $1.1 million and $3.0 million for the three and nine months ended September 28, 2025, respectively. The decrease in the adjustment to the carrying amount of the Redeemable non-controlling interest for the three and nine months ended September 27, 2026, compared to the three and nine months ended September 28, 2025 was due to the Company’s acquisition of the remaining 25% interest in Devil Mountain on June 1, 2026.

Previous wording

Net income attributable to SiteOne increased $10.3 million to $139.3 million for the three months ended June 28, 2026, compared to $129.0 million for the three months ended June 29, 2025, and increased $11.0 million to $112.7 million for the six months ended June 28, 2026, compared to $101.7 million for the six months ended June 29, 2025. The increase in Net income attributable to SiteOne for the three and six months ended June 28, 2026, compared to the three and six months ended June 29, 2025 was primarily due to an increase in Gross profit as a result of the improvement in gross margin, partially offset by lower sales volume and higher SG&A.

Current wording

Net income attributable to SiteOne increased $4.8 million to $63.9 million for the three months ended September 27, 2026, compared to $59.1 million for the three months ended September 28, 2025, and increased $15.8 million to $176.6 million for the nine months ended September 27, 2026, compared to $160.8 million for the nine months ended September 28, 2025. The increase in Net income attributable to SiteOne for the three and nine months ended September 27, 2026, compared to the three and nine months ended September 28, 2025 was primarily due to an increase in Gross profit as a result of the improvement in gross margin, partially offset by lower sales volume, higher SG&A, and an increase in the effective tax rate.

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 six months ended June 28, 2026, we repurchased 952,216 shares of our common stock for approximately $113.8 million at an average price per share of $119.46. In July 2026, we repurchased 100,692 shares of our common stock for approximately $10.0 million at an average price of $99.29 under a 10b5-1 plan that authorized the purchase of the Company’s common stock. For the 2026 Fiscal Year through July 29, 2026, we repurchased 1,052,908 shares of our common stock for approximately $123.8 million at an average price per share of $117.53. As of July 29, 2026, the dollar value of shares that may yet be purchased under the share repurchase authorization was $90.5 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. During the nine months ended September 27, 2026, we repurchased 1,597,891 shares of our common stock for approximately $175.9 million at an average price per share of $110.10. On October 26, 2026, our Board of Directors approved an increase to the our existing share repurchase program, authorizing approximately $538.3 million in the aggregate for share repurchases, compromised of a $500.0 million increase to the share repurchase program and approximately $38.3 million that remained available under the previously approved $400.0 million share repurchase authorization. We intend to purchase shares under this 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 repurchase authorization does not have an expiration date and may be amended, suspended, modified, or terminated by our Board of Directors at any time.

Previous wording

Our borrowing base capacity under the ABL Facility was $443.0 million as of June 28, 2026, after giving effect to $124.1 million of revolving credit loans under the ABL Facility and outstanding letters of credit of $32.9 million. Our borrowing base capacity under the ABL Facility was $577.8 million as of December 28, 2025, after giving effect to outstanding letters of credit of $22.2 million. As of June 28, 2026, we had total cash and cash equivalents of $87.4 million, total gross long-term debt of $510.9 million, and total finance lease obligations (excluding interest) of $137.3 million.

Current wording

Our borrowing base capacity under the ABL Facility was $478.0 million as of September 27, 2026, after giving effect to $89.1 million of revolving credit loans under the ABL Facility and outstanding letters of credit of $32.9 million. Our borrowing base capacity under the ABL Facility was $577.8 million as of December 28, 2025, after giving effect to outstanding letters of credit of $22.2 million. As of September 27, 2026, we had total cash and cash equivalents of $88.4 million, total gross long-term debt of $480.4 million, and total finance lease obligations (excluding interest) of $135.5 million.

Previous wording

Working capital was $1,098.4 million as of June 28, 2026, an increase of $86.4 million, compared to $1,012.0 million as of December 28, 2025. The increase in working capital was primarily attributable to the seasonality of our business and acquisitions.

Current wording

Working capital was $1,085.3 million as of September 27, 2026, an increase of $73.3 million, compared to $1,012.0 million as of December 28, 2025. The increase in working capital was primarily attributable to the seasonality of our business and acquisitions.

Previous wording

Our gross long-term debt balance increased $121.5 million since December 28, 2025. This increase was primarily attributable to funding a seasonal increase in working capital as well as higher acquisition investments, share repurchases, and capital expenditures. We have current maturities on our long-term debt of $3.9 million, which relates to the term loan facility. The projected interest payments on our debt only pertain to obligations and agreements outstanding as of June 28, 2026, 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 28, 2026. 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 projected interest on long-term debt increased by $21.6 million since December 28, 2025, to $116.6 million, primarily due to 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 $91.0 million since December 28, 2025. This increase was primarily attributable to funding a seasonal increase in working capital as well as higher share repurchases, acquisition investments, and capital expenditures. We have current maturities on our long-term debt of $3.9 million, which relates to the term loan facility. The projected interest payments on our debt only pertain to obligations and agreements outstanding as of September 27, 2026, 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 September 27, 2026. 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 projected interest on long-term debt increased by $11.7 million since December 28, 2025, to $106.7 million, primarily due to 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.

Previous wording

Net cash provided by operating activities for the six months ended June 28, 2026 was $31.1 million, compared to $7.1 million for the six months ended June 29, 2025. The increase was primarily driven by higher Net income and a positive contribution from working capital changes in the first six months of 2026 compared to the same period of 2025.

Current wording

Net cash provided by operating activities for the nine months ended September 27, 2026 was $156.7 million, compared to $135.7 million for the nine months ended September 28, 2025. The increase was primarily driven by higher Net income and a positive contribution from working capital changes for the nine months ended September 27, 2026 compared to the same period of 2025.

Previous wording

Net cash used in investing activities was $116.5 million for the six months ended June 28, 2026, compared to $37.9 million for the six months ended June 29, 2025. The increase reflected higher acquisition investments and capital expenditures in the first six months of 2026 compared to the same period of 2025. Capital expenditures were $40.6 million for the first six months of 2026 compared to $29.1 million for the same period of 2025 due to increased investments in branch locations and information technology.

Current wording

Net cash used in investing activities was $140.3 million for the nine months ended September 27, 2026, compared to $53.4 million for the nine months ended September 28, 2025. The increase reflected higher acquisition investments and capital expenditures in the nine months ended September 27, 2026 compared to the same period of 2025. Capital expenditures were $57.9 million for the first nine months of 2026 compared to $39.2 million for the same period of 2025 due to increased investments in branch locations and information technology.

Previous wording

Cash flow (used in) provided by financing activities

Current wording

Cash flow used in financing activities

Previous wording

Net cash used in financing activities was $(17.2) million for the six months ended June 28, 2026, compared to net cash provided by financing activities of $1.3 million for the six months ended June 29, 2025. The change in cash flows for financing activities primarily reflected an increase in share repurchases, partially offset by higher net borrowings under the ABL Facility during the first six months of 2026 compared to the same period of 2025.

Current wording

Net cash used in financing activities was $117.9 million for the nine months ended September 27, 2026, compared to $83.2 million for the nine months ended September 28, 2025. The change in net cash used in financing activities was primarily driven by an increase in share repurchases, partially offset by higher net borrowings under the ABL Facility for the nine months ended September 27, 2026 compared to the same period of 2025.

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 5.38718% and 5.50012% as of June 28, 2026 and December 28, 2025, respectively.

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 5.64077% and 5.50012% as of September 27, 2026 and December 28, 2025, respectively.

Previous wording

The weighted average interest rate on outstanding balances under the ABL Facility was 4.75248% as of June 28, 2026. There was no outstanding balance under the ABL Facility as of December 28, 2025. The commitment fees on unfunded amounts was 0.25% as of June 28, 2026 and December 28, 2025.

Current wording

The weighted average interest rate on outstanding balances under the ABL Facility was 5.01201% as of September 27, 2026. There was no outstanding balance under the ABL Facility as of December 28, 2025. The commitment fees on unfunded amounts was 0.25% as of September 27, 2026 and December 28, 2025.

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. There was no outstanding balance as of June 28, 2026. The interest rate on the outstanding balance under the Devil Mountain ABL Facility was 5.77272% as of December 28, 2025.

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 5.58336% and 5.77272% as of September 27, 2026 and December 28, 2025, respectively.