Stella-Jones (SJ) Investor presentation summary

Financial performance and growth

• Achieved $3.5B in trailing twelve months sales with a 3-year sales CAGR of 3.33%.

• Adjusted EBITDA margin reached 16.9% TTM, with a 3-year CAGR of 6.0%.

• Adjusted EPS grew at a 3-year CAGR of 5.55%.

• Free cash flow conversion was 74% TTM, supporting strong cash generation.

• Over $600M in free cash flow generated since 2023, with a 50% EBITDA/FCF conversion target.

Market positioning and operations

• Focused on large infrastructure markets: utility products, railway ties, industrial products, residential lumber, and logs.

• 65–75% of sales are contractual or committed, providing revenue stability.

• 76% of sales are in the US, with 46 manufacturing facilities and ~3,200 employees.

• Infrastructure sales grew from ~69% in 2022 to ~81% in 2025.

• Leading supplier for North American utility and railway infrastructure markets.

Capital allocation and M&A strategy

• Maintenance capex targeted at ~2.5% of sales annually.

• Dividend payout targeted at 20–30% of prior year basic adjusted EPS.

• Share repurchases based on M&A activity and leverage, with a target leverage of 2.0–2.5x net debt/adjusted EBITDA.

• Recent acquisitions include Brooks Manufacturing (US$140M) and Locweld ($58M), expanding product offerings.

• $759M available liquidity supports ongoing M&A and growth initiatives.