Analyst Day Preview: A Path Back to the LT Algo, with Heritage in Close Pursuit

Research evidence excerpt

Analyst Day Preview: A Path Back to the LT Algo, with Heritage in Close Pursuit

nues to Tick Up. SITE is the clear industry leader at >2x the size of its nearest Source: Company Data, FactSet, Jefferies

competitor, yet it still controls only a modest portion of the highly fragmented $25bn wholesale

landscaping distribution market. The company’s market share has ticked up consistently, reaching

~19% as of year-end 2025, up from 10% in 2018. This continuous expansion is driven by key

commercial programs, most notably the siteone.com digital platform, which saw digital sales grow

>60% in 1Q26. Digital engagement is creating sticky customer relationships, as customers who buy

digitally grow significantly faster than traditional buyers. SITE's focus on its bilingual branch (now

~68% of locations, up from 62% in 2024) has also helped. We expect more details on organic and

inorganic opportunities to grow market share.

More Margin Opportunities to Come? Beyond share gains, we expect management to highlight

several idiosyncratic self-help margin levers at the analyst day. Private label grew to 15% of total

sales in 2025, and management sees a LT target of 25-30%. Operational turnarounds at focus

branches (locations operating with EBITDA margins <6%) also present a major tailwind, having

delivered >200bps of margin improvement in 2025 with further progress expected in 2026. Lastly,

the company is optimizing its delivery network through DispatchTrack, which helped reduce net

delivery expense on delivered sales by >40bps in 2025.

Stephen Volkmann, CFA * | Equity Analyst

SRS/Heritage: A Growing Competitor. The competitive landscape faced a shakeup when HD (212) 284-2031 | svolkmann@jefferies.com