Jewett-Cameron Trading Company (JCTC) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue increased to $9.1 million, up 10–11% year-over-year, driven by growth in metal fencing products, Greenwood segment, and expanded in-store displayers at major retailers.

• Gross margin declined to 20.1% from 25.1% in Q2 2024 due to product mix, higher logistics costs, and investment in new display units, but improved from 18.3% in Q1 2025.

• Net loss for Q2 2025 was $0.6 million ($0.16 per share), compared to net income of $0.5 million ($0.15 per share) in Q2 2024.

• Operating expenses decreased to $2.6 million from $2.8 million year-over-year, mainly due to headcount realignment.

• Ended seed operations and listed related property for sale at $9 million, with a book value under $600,000.

Financial highlights

• Q2 2025 sales: $9.1 million vs. $8.2 million in Q2 2024; six-month sales: $18.3 million, up 2% year-over-year.

• Gross profit: $1.8 million in Q2 2025 vs. $2.1 million in Q2 2024.

• Cash at quarter-end: $0.4 million; $6 million revolving credit line available, with $3 million drawn post-quarter at 12.25% interest.

• Inventory reduced by 15–23% year-over-year to $14.9 million.

• Stockholders' equity: $23.7 million, or $6.73 per share.

Outlook and guidance

• Growth expected from continued rollout of Lifetime Steel Post displayers, Adjust-A-Gate reorders, and new grocery retailers for sustainable bags.

• Tariff and pricing changes introduce uncertainty for seasonal sales; inventory levels and supply chain diversification will be closely monitored.

• Liquidity expected to be sufficient for the next 12 months, supported by credit line.