Stella-Jones (TSE:SJ) Announces Earnings Results

Stella-Jones (TSE:SJ) announced its earnings results on Wednesday. The company reported C$1.12 earnings per share (EPS) for the quarter, FiscalAI reports. The firm had revenue of C$791.00 million during the quarter. Stella-Jones had a return on equity of 14.85% and a net margin of 8.66%.

Here are the key takeaways from Stella-Jones’ conference call:

• Utility products remain the primary growth driver—Q1 utility sales were CAD 469M (up 12%) with wood pole volumes +12% and recent acquisitions contributing to demand; the company is also on schedule to double steel structure capacity by mid?2026.
• Management is expanding its North American steel footprint with a new Fayetteville, TN lattice facility (approximately US$500 million investment, ~20,000 tons capacity) targeting commissioning late 2027 and full production by end of 2028, which should support future topline and backlog for U.S. customers.
• Railway ties are broadly stable (Q1 ties sales CAD 198M, down 5% largely from FX); leadership is consolidating the network to target CAD 10–15 million of annualized cost savings starting in 2027, but will incur mostly non?cash one?time restructuring charges to implement the plan by end of Q2.
• The balance sheet and cash generation are solid—Q1 sales were CAD 791M, adjusted EBITDA CAD 136M (17.2% margin), operating cash flow CAD 47M, available liquidity CAD 646M and net debt/adjusted EBITDA of 2.6x, providing flexibility to fund expansions and M&A.
• Residential lumber softened in Q1 (sales down 14% to CAD 76M) with declines roughly split between lower volumes and weaker pricing, creating near?term headwinds despite management’s confidence in the business model and seasonal pickup expectations.

Stella-Jones Price Performance

TSE SJ opened at C$74.42 on Friday. The company has a quick ratio of 1.20, a current ratio of 4.96 and a debt-to-equity ratio of 80.71. The company has a market cap of C$4.06 billion, a PE ratio of 12.22, a price-to-earnings-growth ratio of 2.40 and a beta of -0.15. Stella-Jones has a 52 week low of C$70.98 and a 52 week high of C$101.31. The firm’s 50-day simple moving average is C$89.83 and its two-hundred day simple moving average is C$88.24.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on SJ. TD Securities raised their price objective on shares of Stella-Jones from C$97.00 to C$107.00 and gave the stock a “buy” rating in a report on Monday, March 2nd. Raymond James Financial dropped their target price on shares of Stella-Jones from C$100.00 to C$95.00 and set an “outperform” rating on the stock in a research note on Thursday. Desjardins decreased their price target on shares of Stella-Jones from C$107.00 to C$104.00 and set a “buy” rating for the company in a research note on Thursday. Canadian Imperial Bank of Commerce lowered their price target on shares of Stella-Jones from C$96.00 to C$87.00 in a report on Thursday. Finally, Scotiabank dropped their price objective on Stella-Jones from C$99.00 to C$97.00 and set a “sector outperform” rating on the stock in a research note on Tuesday, April 28th. Five research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of C$97.00.

About Stella-Jones

Stella-Jones Inc produces and sells lumber and wood products. The company operates in two segments: Pressure-treated wood, which includes utility poles, railway ties, residential lumber, and industrial products; and Logs & Lumber segment comprises of the sales of logs harvested in the course of the company’s procurement process that is determined to be unsuitable for use as utility poles, it also includes the sale of excess lumber to local home-building markets. The vast majority of its revenue comes from the Pressure-treated wood segment.