Grizzly Bulls
Financial research concept

Landscape Supply Gross Margin

measures gross profit as a percentage of net sales after product cost, freight, and other direct distribution costs.

By Lee BaileyPublished Sep 30, 2026
Research context

See what supports this page, how current it is, and where comparable or historical context is available.

Research date
Sep 30, 2026Use the dated article and cited sources for the definition, examples, and stated limitations.
Operating-model context
10 connected conceptsPart of the reviewed Landscape Supply Economics; issuer definitions remain distinct where disclosed.
Company examples
1 reviewed companyRelationships reflect supported examples, not a normalized cross-company KPI ranking.
  1. Margin reflects price realization and merchandise economics
  2. Gross margin stops before operating overhead
  3. Part of the Landscape Supply Economics
  4. See It in Company Research
  5. Continue Research

Landscape supply gross margin measures gross profit as a percentage of net sales after product cost and other direct costs of distribution.

SiteOne reported 36.9% gross margin in the second quarter of 2026, up 50 basis points year over year.

Margin reflects price realization and merchandise economics

SiteOne attributed the improvement primarily to higher price realization and commercial initiatives, partly offset by higher freight and distribution costs and deflation in some commodity products.

That makes the measure more informative than revenue growth alone when product costs are moving.

Gross margin stops before operating overhead

A stronger gross margin can still be offset by higher branch, labor, fuel, and corporate costs.

Read it with SG&A expense rate and adjusted EBITDA margin to follow conversion further down the income statement.

Primary source: SiteOne Q2 2026 earnings exhibit.

Part of the Landscape Supply Economics

Connects organic and acquired growth, branch and logistics reach, assortment and supplier breadth, residential end-market exposure, and margin conversion in professional landscape distribution.

Browse the full operating model in Company Analysis →
Where this concept fits
  • Gross profit and operating conversionCurrent relationship
    Gross margin captures merchandise and direct-distribution economics, SG&A rate shows branch-network cost intensity, and adjusted EBITDA margin carries the analysis through issuer-defined operating conversion.
    Adjusted EBITDA MarginGross MarginCurrent conceptSG&A Expense Rate
  • Organic growth, acquisitions, and end-market exposure
    Organic Daily Sales isolates the comparable branch base, acquisition contribution explains portfolio-added growth, and residential construction mix frames an important source of demand sensitivity.
    Acquisition Revenue ContributionOrganic Daily Sales GrowthResidential Construction Sales Mix
  • Distribution reach and assortment depth
    Branches and delivery vehicles define physical reach, while SKU and supplier counts describe the breadth of products and sourcing relationships supporting contractor availability.
    Branch CountDelivery Vehicle CountSKU CountSupplier Count

See It in Company Research

These companies are examples of how the concept is reported or discussed in public filings. Definitions can differ by issuer; these links open company research rather than a normalized metric comparison.

Continue Research

Continue from the concept into the Grizzly Bulls research surface that best matches the next question. These links are research continuations, not recommendations or required steps.

Compare stocks

Compare landscape-supply gross margins

Compare gross margin with product cost, price realization, freight, and commodity deflation or inflation in context.

Continue research

Explore more topics in the Financial Research Encyclopedia.