Performance Update – September 2026
This was in the top 25 wettest August’s for NEO since 1895, and it shows with our performance, and we slipped further from our budget.
| Actual vs Budget | August | YTD |
| Sales | ↓ 9% | ↑ 1% |
| Gross Profit | ↓ 34% | ↓ 4% |
| Gross Margin | ↓ 7.4 pts | ↓ 1.1 pts |
| Net Income | ↓ 57% | ↓ 20% |
Landfill continues to be the biggest driver in why we are missing our budget. The losses continue to outpace budget around 2.5x the amount planned. When removing the Landfill from the equation, our Net Income would be up 17% YTD compared to budget.
Store sales are 6% behind budget for the year, and most impactful hits are Winter, Colored Mulch, Organics and Misc. Topsoil has performed well, but not enough to make up for these short falls elsewhere.
Production revenue slipped a little to budget but overall continues to be a bright spot. Production net income is currently 7% of sales, compared to a budgeted loss of 6%. Increased sales are part of the improvement, but the biggest driver has been lower mulch costs as we continue to benefit from a large inflow of free fiber.
Project revenue, margins and net income all fell short of August budget but are we still ahead YTD.
August was a tough month, but we still have opportunity ahead of us. As we head into the final stretch of the year, let’s stay focused on the areas we can control, make the most of project the opportunities in front of us, and finish the year as strong as we can.
