Jewett-Cameron Trading Company (JCTC) Q3 2026 earnings summary

Executive summary

• Sales for the quarter ended May 31, 2026, declined 22% year-over-year to $9.9 million, mainly due to the loss of a major cedar fencing supply agreement and weak pet product demand, partially offset by growth in metal fencing and Greenwood segments.

• Net loss for the quarter was $814,330 ($0.23 per share), widening from $650,000 ($0.18 per share) in Q3 2025; nine-month net loss was $6,007,397 ($1.71 per share).

• Gross margin improved to 18.0% for the quarter (vs. 15.0% prior year), driven by tariff-related price increases and a higher mix of metal fencing products, but nine-month margin fell to 8.1% (vs. 17.5%) due to higher tariffs, shipping costs, and inventory liquidations.

• Inventory reduction and improved liquidity were achieved, with inventory down over $8 million year-to-date and cash up to $1.1 million.

• Strategic realignment continues, focusing on core fencing and pet product lines, operational efficiencies, and monetization of non-core assets.

Financial highlights

• Quarterly sales: $9.85 million (down from $12.61 million year-over-year); nine-month sales: $29.04 million (down from $30.93 million).

• Operating expenses for the quarter were $2.54 million, flat year-over-year; nine-month operating expenses rose to $8.01 million (from $7.72 million).

• Cash and cash equivalents increased to $1.1 million from $226,213 at prior fiscal year-end.

• Inventory reduced by $8.43 million (53%) to $7.45 million due to liquidation of excess stock.

• Bank indebtedness decreased to $1.3 million from $2.1 million.

Outlook and guidance

• Management expects continued challenges from high tariffs, inflation, and weak consumer discretionary spending into fiscal 2027, with a focus on core products and unlocking value from non-core assets.

• Strategic focus is on cost reduction, asset sales, and evaluating mergers, acquisitions, divestitures, and partnerships.

• Ongoing efforts to improve cash conversion and pursue tariff refunds.