Jewett-Cameron Trading Company (JCTC) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue declined 21% year-over-year to $12.6 million, mainly due to tariff-related uncertainty, supply shortages, and deferred purchases, resulting in a net loss of $649,634 (negative $0.18 per share), compared to net income of $0.2 million in Q3 2024.

• Metal fence business was resilient, down only 4% year-over-year, with Lifetime Steel Post sales up 85% and displayers up 88% since November 2024.

• Pet business sales dropped 44% year-over-year, though slightly improved sequentially; wood fencing also declined due to supply constraints.

• Operating expenses decreased due to a 20% workforce reduction and lower SG&A, but were offset by increased interest expense from new credit line borrowings.

• The company expects continued losses in Q4 and for the full year, citing ongoing tariff disruptions, weak consumer sentiment, and high inventory levels among retailers.

Financial highlights

• Q3 2025 sales: $12.6M (down from $15.9M in Q3 2024); nine-month sales: $30.9M (down from $33.9M year-over-year).

• Gross margin fell to 15% from 18.6% year-over-year, impacted by higher tariffs, shipping costs, and a shift to lower-margin products.

• Net loss Q3 2025: $649,634 (EPS: -$0.18); nine-month net loss: $1,881,445 (EPS: -$0.54).

• Cash and cash equivalents at May 31, 2025: $1.2M, down from $4.9M at August 31, 2024.

• Inventory at quarter-end was $15.3M, up from $13.16M at the prior year-end.

Outlook and guidance

• Tariff-related challenges and deferred retailer purchases are expected to persist into Q4 2025, with continued uncertainty and weak demand.

• Management expects gross margins to recover as pricing initiatives take hold and operational efficiencies improve.

• Liquidity is expected to be sufficient for the next twelve months, supported by working capital and renewed credit line.