Canada · Delayed Price · Currency is CAD Stella-Jones Earnings Call Transcripts
Fiscal Year 2026
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The company is evolving into a leading infrastructure products supplier for utilities and railroads, with strong recurring revenue from long-term contracts and a focus on expanding steel product offerings. Recent acquisitions and a new U.S. facility support growth targets of 4%-5% annual sales and 10% EPS CAGR through 2028.
Fiscal Year 2025
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Solid 2025 results with sales of CAD 3.5B, EBITDA margin of 18.1%, and strong cash flow. Utility products led growth, while railway ties faced volume declines but maintained profitability. Strategic acquisitions and capacity expansions position the company for continued growth.
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A future-ready strategy targets growth in utility and rail infrastructure, expanding into steel structures and value-added services while maintaining strong financial discipline. Sales are projected to reach $4B by 2028, with EPS growth outpacing sales, supported by operational efficiencies, disciplined capital allocation, and robust ESG initiatives.
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Q3 saw 5% sales growth (including acquisitions), strong EBITDA margin, and improved utility pole volumes offsetting railway tie softness. Guidance for 2025 remains intact, with continued focus on growth, capital returns, and strategic expansion.
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Q2 2025 saw a slight sales decline but strong EBITDA margins, with Rockwell's integration boosting future prospects. Guidance was lowered for utility poles and railway ties, but long-term growth and profitability targets remain intact, supported by robust liquidity and capital allocation.
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Q1 2025 saw resilient margins and strong liquidity despite lower sales from railway ties and weather impacts. The Locweld acquisition expands steel transmission capabilities, with capacity set to double and robust demand expected. Guidance for 2025 is maintained.
Fiscal Year 2024
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Sales grew 5% to $3.5B in 2024, with EBITDA up to $633M and a margin above 18%. Utility pole and railway tie segments drove growth, while strong cash flow supported increased dividends and share buybacks. 2025 guidance calls for mid-single-digit utility pole growth and continued margin strength.
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Q3 2024 saw lower-than-expected sales due to utility pole volume declines, but margins and cash flow remained strong. The sales target for 2025 was revised to CAD 3.6 billion, with a sustainable EBITDA margin above 17% and continued focus on acquisitions and shareholder returns.
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Q2 2024 saw robust sales and margin growth, led by utility poles and railway ties, with strong cash generation and shareholder returns. Outlook remains positive, with utility pole demand and margins expected to stay strong, while residential lumber faces weak demand.