Stella-Jones Announces Fourth Quarter And Full Year 2025 Results

Executive Summary

• Stella‑Jones reported FY 2025 sales of C$3.49 bn, in line with guidance, and operating income of C$516 m, boosted by a C$28 m insurance settlement gain.
• EBITDA reached C$661 m (18.9% margin), up from C$633 m YoY; net income was C$337 m (C$6.09 EPS).
• The board declared a 10% higher quarterly dividend of C$0.34 per share and approved a US$50 m investment in a new U.S. greenfield steel‑lattice facility slated for commissioning by end‑2027.

Key Details

• Sales: FY 2025 C$3,492 m (vs. C$3,469 m 2024); Q4 2025 C$727 m (vs. C$730 m 2024).
• Operating Income: FY 2025 C$516 m (up from C$503 m); includes C$28 m insurance settlement gain.
• EBITDA: FY 2025 C$661 m (18.9% margin) vs. C$633 m (18.2%) 2024; Q4 2025 C$122 m (16.8% margin).
• Net Income / EPS: FY 2025 C$337 m, C$6.09 per share; Q4 2025 C$50 m, C$0.91 per share.
• Cash Flow: Operating cash generated C$557 m; free cash used for acquisitions (Locweld & Brooks – total C$259 m) and shareholder returns (C$158 m).
• Liquidity: Available liquidity C$634 m; net‑debt‑to‑EBITDA 2.4×, within target range.
• Dividends: Quarterly dividend increased 10% to C$0.34 per share (payable 24 Apr 2026).
• Capital Allocation: Board approved ~US$50 m for a new 20,000‑ton steel lattice plant in the southeastern U.S.; site selection final, commissioning expected end‑2027.
• Acquisitions Impact: Locweld and Brooks contributed C$66 m to FY sales; organic sales growth modest (+1% YoY).
• Segment Performance (FY 2025):
• Utility products: C$1,822 m (+1% organic) – volume‑driven.
• Railway ties: C$821 m (‑10% YoY).
• Residential lumber: C$615 m (flat).
• Industrial products: C$160 m (+3%).
• Logs & lumber: C$74 m (down).
• Quarterly Highlights: Utility product sales up 9% organic in Q4; railway ties down 16%; residential lumber down 14%; overall gross profit margin improved to 19.7% in Q4.
• Conference Call: Feb 26 2026, 10:00 AM EST (tel 1‑800‑990‑2777, ID 77440).

Notable Quotes

“We concluded the year with sales in line with our guidance… EBITDA margin above our target… The acquisitions of Locweld and Brooks position us to serve a broader transmission and distribution market.” – Eric Vachon, President & CEO.

All forward‑looking statements are subject to risks and uncertainties detailed in the release.