Pressure-treated wood producer Stella-Jones Q3 sales miss estimates

Stella-Jones

05/11/2025 12:23

Overview

Stella-Jones Q3 sales rise 5% to C$958 mln, missing analyst expectations

Net income for Q3 2025 increases to C$88 mln, with EPS of C$1.59

Company had previously announced plan to acquire Brooks Manufacturing

Outlook

Company did not provide specific financial guidance for future quarters or full year

Result Drivers

UTILITY POLES - Sales increased due to volume growth from new contracts, offset by lower spot market pricing

RAILWAY TIES - Sales rose due to improved pricing despite stable volumes

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
C$958 mln
C$960.40 mln (8 Analysts)
Q3 Net Income
C$88 mln
Q3 Gross Margin
19.60%
Q3 EBITDA
C$171 mln
Q3 EBITDA Margin
17.80%
Q3 Gross Profit
C$188 mln
Q3 Operating Income
C$135 mln
Q3 Operating Margin
14.10%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "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$89.00, about 10.6% above its November 4 closing price of C$79.56

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

Press Release: ID:nGNX79zjcP

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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.)