Stella-Jones (SJ) Investor Day 2025 summary

Strategic Vision and Growth Initiatives

• Refined strategy emphasizes being a future-ready supplier to utility and railroad industries, expanding into steel structures, composites, and value-added services.

• Infrastructure products now represent 80% of sales, up from 69% in 2022, with utility poles and railway ties as core growth drivers.

• Recent acquisitions and $350M in M&A since 2022 have expanded reach into steel transmission structures and crossarms, with plans to double steel capacity to 20,000 tons by mid-2026 and explore a U.S. greenfield plant.

• Investments include $130M in growth capex since 2022, targeting new markets such as composites, inspection services, and structural fixtures.

• Strategic focus on leveraging customer relationships, operational scale, and innovation to capture long-term value and support future-ready operations.

Financial Performance and Guidance

• Sales reached $3.5B in LTM Q3 2025, growing at a 4.5% CAGR since 2022, with 25 consecutive years of top-line growth.

• EBITDA margins expanded from 14.6% in 2022 to 17.9% in LTM Q3 2025 and are expected to remain at 17.5%-18.5% through 2028.

• EPS grew at a 13% CAGR since 2022, with a target of over 10% CAGR for 2026-2028, driven by profitability levers and share buybacks.

• Free cash flow generation totaled ~$600M since 2023, supporting $300M+ in share repurchases and consistent dividend increases.

• CapEx to remain at 2.5% of sales ($85-$95 million/year), with additional investments in technology, innovation, and a potential U.S. steel plant.

Operational Excellence and Innovation

• Completed ERP implementation enables better data-driven decisions and operational scalability.

• Focus on automation, robotics, and AI to improve efficiency, safety, and cost structure in manufacturing and logistics.

• Centralizing procurement and supply chain processes to leverage scale and drive cost reductions.

• Key operational metrics include productivity per man hour, cost per unit, customer complaints, cross-training, and safety observations.

• Continuous improvement and lean manufacturing are embedded in the culture to drive measurable gains.