Canada · Delayed Price · Currency is CAD Stella-Jones Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 saw strong growth in utility products, stable railway ties, and disciplined management of residential lumber. Adjusted EBITDA margin declined due to product mix and compensation, but cash flow and liquidity remain robust. Guidance for the year is reaffirmed.
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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 refined strategy targets growth in utility and railroad infrastructure, expanding into steel structures and value-added services while maintaining strong financial discipline. Sales are projected to reach $4 billion by 2028, with sustained high margins and a focus on innovation, operational excellence, and ESG leadership.
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Q3 saw organic sales and EBITDA growth, driven by utility pole volumes and steel structure contributions, offsetting railway tie softness. Guidance for the year is maintained, with strong cash flow, reduced leverage, and ongoing investments supporting long-term growth.
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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 saw resilient margins and strong liquidity despite lower sales from railway ties and weather impacts. The Locweld acquisition expands infrastructure offerings, with capacity set to double and robust demand expected. Guidance for 2025 is maintained, with utility pole growth in H2.
Fiscal Year 2024
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Sales and EBITDA grew in 2024, with strong cash flow supporting investments and shareholder returns. Utility pole and railway tie segments delivered solid results, while residential lumber met targets amid favorable pricing. 2025 guidance calls for mid-single-digit utility pole growth and continued margin discipline.
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Q3 sales declined 4% year-over-year due to lower volumes, but margins and cash flow remained strong. The three-year sales target was revised to CAD 3.6 billion by 2025, with EBITDA margin guidance raised to over 17%. Utility pole growth is expected at 6%-7% annually, driven by volume.
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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.