Canada's Stella-Jones Q4 revenue misses on railway ties decline

Stella-Jones

26/02/2026 11:09

Overview

Canada infrastructure support firm's Q4 revenue missed analyst expectations

Utility products sales rose 16% in Q4, driven by acquisitions and demand

Company to invest US$50 mln in new U.S. steel lattice facility

Outlook

Stella-Jones sets financial objectives for 2026-2028

Company invests US$50 mln in U.S. steel lattice facility

Facility expected to be operational by end of 2027

Result Drivers

UTILITY PRODUCTS GROWTH - Sales increased due to acquisitions and higher demand, contributing to gross profit growth

RAILWAY TIES DECLINE - Sales decreased due to competitive pressures and timing-related factors

RESIDENTIAL LUMBER SOFTNESS - Sales declined due to lower volumes despite stable pricing

Company press release: ID:nGNX164rV0

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Miss
C$727 mln
C$755.27 mln (7 Analysts)
Q4 Net Income
C$50 mln
Q4 Gross Margin
19.70%
Q4 EBITDA
C$122 mln
Q4 EBITDA Margin
16.80%
Q4 Gross Profit
C$143 mln
Q4 Operating Income
C$83 mln
Q4 Operating Margin
11.40%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "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$99.00, about 3.6% above its February 25 closing price of C$95.60

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)