Canada's Stella-Jones Q1 sales rise less than expected

Stella-Jones

06/05/2026 11:08

Overview

Canada infrastructure wood products maker's Q1 sales rose yr/yr but missed analyst expectations

Adjusted EPS for Q1 was nearly flat at C$1.12 vs C$1.15 a year ago

Company repurchased C$15 mln in shares during the quarter

Outlook

Company maintains 2026-2028 financial objectives for adj EBITDA margin at 17.5-18.5%

Stella-Jones expects >10% CAGR for adj EPS through 2028

Company says demand for utility products remains strong, supported by multi-year contracts

Result Drivers

UTILITY POLES VOLUME - Higher sales volumes of wood utility poles, supported by multi-year contract commitments, drove growth in utility products

PRODUCT MIX AND PRICING - Less favourable product mix for wood utility poles, including fewer fire-resistant poles, led to lower average pricing and pressured margins

SOFTER DEMAND IN OTHER SEGMENTS - Declines in residential lumber and industrial products sales were driven by softer market demand and lower prices

Company press release: ID:nGNX33VyHF

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Miss
C$791 mln
C$811.34 mln (8 Analysts)
Q1 Adjusted EPS
C$1.12
Q1 Net Income
C$60 mln
Q1 Gross Margin
19.60%
Q1 Gross Profit
C$155 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "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$97.00, about 16.2% above its May 5 closing price of C$83.50

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago

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(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.)