Stella-Jones (SJ) Investor presentation summary

Financial performance and growth

• Achieved $3.5B in trailing twelve months sales with a 3-year CAGR of 4% for sales and 8.8% for adjusted EBITDA.

• Adjusted EBITDA margin reached 17.6% and adjusted EPS grew at a 9.4% CAGR over three years.

• Free cash flow conversion was 79% (TTM), with over $600M in FCF generated since 2023.

• Sales are primarily in the US (76%), with 65–75% of sales contractual or committed.

• Three-year targets (2026–2028) include 4–5% sales growth, 17.5–18.5% adjusted EBITDA margin, and >10% EPS growth.

Market focus and operations

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

• Utility products and railway ties are the largest segments, with utility products accounting for $1.87B in TTM sales.

• Infrastructure sales grew from ~69% in 2022 to ~81% in 2025, driven by replacement and expansion needs.

• Operates 46 manufacturing facilities and employs ~3,200 people.

Strategic initiatives and capital allocation

• Capital allocation priorities: maintenance capex (~2.5% of sales), strategic growth, consistent dividend (20–30% of prior year EPS), and share repurchases.

• M&A strategy targets operational fit, strategic value, and financial returns, with recent acquisitions including Brooks Manufacturing and Locweld.

• Maintains a leverage target of 2.0–2.5x net debt/EBITDA, with $646M available liquidity.

• Willing to temporarily exceed leverage target for strategic acquisitions.