Stella-Jones (SJ) Q3 2025 earnings summary

Executive summary

• Achieved Q3 2025 sales of $958 million, a 5% increase year-over-year, with operating income up 4% to $135 million and EBITDA up 6% to $171 million, reflecting robust margins and improved cash flow.

• Achieved another successful quarter with strong execution across all business segments, supported by organic sales growth in pressure-treated wood and contributions from the steel structure division.

• Net income for Q3 2025 was $88 million ($1.59 per share), up from $80 million ($1.42 per share) in Q3 2024.

• Completed the Brooks acquisition, expanding product offerings and presence in crossarm and transmission framing components.

• Published latest ESG report, advancing GHG reduction initiatives and obtaining limited assurance on Scope 1 and 2 emissions.

Financial highlights

• Q3 sales up 2% organically year-over-year, and 5% including Lockwell acquisition, totaling a $43 million increase.

• Q3 2025 gross profit was $188 million (19.6% margin), with operating income at $135 million (14.1% margin).

• EBITDA rose to $171 million, with a solid margin of 17.8%.

• Utility pole sales reached $480 million (up from $448 million in Q3 2024), with volumes up 5% but pricing down 3%.

• Railway tie sales increased by $6 million to $211 million, driven by better pricing despite lower Class 1 volumes.

• Residential lumber sales grew to $201 million, reflecting higher pricing and stable demand.

• Cash from operations in Q3 was $198 million, up from $186 million last year.

Outlook and guidance

• Utility pole sales growth for the full year expected in the low single-digit range versus 2024.

• Railway ties forecasted to decline mid-single digits year-over-year due to project delays and internalization by a major customer.

• Residential lumber sales anticipated to trend in the $600 million-$650 million range long-term.

• Guidance for the year remains intact, with confidence in long-term growth for infrastructure product categories.

• Management remains confident in the long-term growth trajectory, supported by a strong balance sheet and continued investment in core businesses.

• The acquisition of Brooks is expected to accelerate growth and broaden the infrastructure solutions portfolio.