SITE - Shares Aggressive Growth Targets Focused on Internal Improvements at Investor Day; Execution Now the Focus

研报英文原文证据摘录

SITE - Shares Aggressive Growth Targets Focused on Internal Improvements at Investor Day; Execution Now the Focus

improving labor efficiency, and more. Note management does not see a structural reason

(geography, local market) why any individual branch cannot see this improvement. The pace of improvement is expected to be steady as

the EBITDA margin distribution of branches normalizes and should provide a steady y/y margin tailwind.

Provides Long-Term Growth Outlook for Different End Markets. The long-term growth outlook for SITE's end markets remains stable

with management expecting Maintenance growth of 2-3%, New Construction growth of 3-5%, and Repair & Upgrade growth of 4-6%. Note

the company's end market outlook for 2026 is well below this, implying a return to growth in these end markets long-term. Management

is forecasting a flat end market in 2027, then a return to growth in 2028.

Landscape Supply Industry Remains Highly Fragmented... Management highlighted that the $36 billion landscape supply market

remains highly fragmented with thousands of smaller independent players. While SITE has a dominant position with 13% market share

and is about 3 times the size of the next competitor, there remains significant room for consolidation in the space.

...and So Does Its Customer Base; Small Customers Remain an Opportunity. Management believes that there are roughly 700,000

customers in the landscaping market providing for a significantly fragmented customer base. As discussed on previous earnings calls,

SITE remains under penetrated with Small Customers (<$500k service revenue) having only a 9% market share. This compares to the

11% share with Medium Customers ($500k-$2.5 million), 13% share for Large Customers ($2.5-$15 million), and 17% share with Major