Brief: Stella Jones Q2 Sales CAD 1,034 Million Vs. IBES Estimate CAD 1,070 Million

Stella-Jones

07/08/2025 12:00

Overview

Stella-Jones Q2 sales down 1%, missing analyst expectations, per LSEG data

Co maintains strong EBITDA margin despite lower sales volumes

Completed Locweld acquisition, expanding infrastructure offerings

Outlook

Stella-Jones updates 2025 sales outlook to C$3.5 bln from C$3.6 bln

Company expects above 17% EBITDA margin in 2025

Stella-Jones sees low single-digit growth in utility poles for 2025

Company anticipates modest decline in railway ties sales for 2025

Result Drivers

UTILITY POLES - Sales increased due to new customer volumes but were offset by lower pricing and overall volume decline

RAILWAY TIES - Sales decreased due to a major customer's shift to in-house treatment and project delays

LOCWELD ACQUISITION - Acquisition contributed positively to sales, expanding infrastructure offerings

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
C$1.03 bln
C$1.07 bln (8 Analysts)
Q2 Net Income
C$106 mln
Q2 Gross Margin
19.9%
Q2 EBITDA
C$189 mln
Q2 EBITDA Margin
18.3%
Q2 Gross Profit
C$206 mln
Q2 Operating Income
C$155 mln
Q2 Operating Margin
15.0%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the forest & wood products peer group is "buy"

Wall Street's median 12-month price target for Stella-Jones Inc is C$90.00, about 12.8% above its August 6 closing price of C$78.49

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nGNX72tkYs

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)