Jewett-Cameron Trading Company (JCTC) investor relations material

Executive summary

• Fiscal 2025 saw a challenging second half due to volatile tariffs and global economic uncertainty, leading to a strategic realignment focused on core metal fencing products and operational efficiency.

• Initial quarters showed revenue growth, but new tariffs in February 2025 disrupted supply chains, increased costs, and reduced retailer demand, especially in lumber and pet segments.

• Management accelerated cost-cutting, reducing headcount by 27% year-over-year and targeting further annual expense reductions of $1–$3 million.

• Monetization of non-core assets, including excess inventory and real estate, is underway to fund core growth and improve liquidity.

Financial highlights

• Fiscal 2025 sales were $41.3 million, down 12% from $47.1 million in 2024; first-half sales were up year-over-year, but second-half sales declined sharply.

• Gross margin fell to 15.1% from 18.8% in 2024, impacted by higher costs and increased obsolete inventory reserves.

• Operating expenses decreased to $10.0 million from $10.7 million, with significant savings in wages and benefits.

• Net loss was $(4.1) million, or $(1.18) per share, compared to net income of $722,000, or $0.21 per share, in 2024.

• Cash and cash equivalents at year-end were $226,213, down from $4.85 million the prior year.

Outlook and guidance

• Strategic focus will remain on expanding the core metal fencing category, leveraging new retail placements and product innovation.

• Management aims to exit fiscal 2026 with a sustainable business model, funded by monetizing non-core assets.

• Ongoing efforts to align costs with pricing and deepen key partnerships are expected to rebuild margins as trade conditions stabilize.