Stella-Jones (SJ) Q2 2025 earnings summary

Executive summary

• Q2 2025 results showed disciplined execution with strong EBITDA margins and healthy cash flow, despite a 1% sales decline and softer volumes.

• Completed the acquisition of Rockwell (also referred to as Locweld), expanding into steel transmission structures and supporting future growth.

• Integration of Rockwell/Locweld is progressing well, with operational investments underway and a five-year supply commitment secured from a major utility.

• Available liquidity at quarter-end was nearly CAD 700 million, supporting ongoing strategic initiatives.

Financial highlights

• Q2 2025 sales were $1,034 million, down 1% year-over-year, with operating income at $155 million and EBITDA at $189 million (18.3% margin).

• Utility pole sales at $476 million, down 4% organically; railway tie sales down 11% to $240 million; residential lumber sales stable at $246 million.

• Gross profit for Q2 was $206 million (19.9% margin), down from $226 million (21.5%) in Q2 2024.

• Net income for Q2 was $106 million ($1.91 per share), compared to $110 million ($1.94 per share) last year.

• Cash from operations over the last 12 months was approximately CAD 500 million.

Outlook and guidance

• 2025 sales guidance revised to approximately $3.5 billion (from $3.6 billion), reflecting lower organic growth in utility poles and railway ties.

• Utility pole sales outlook for H2 2025 reduced to low single-digit growth; railway tie sales expected to decline low single-digit year-over-year.

• Residential lumber expected to achieve $600–650 million in sales for 2025.

• EBITDA margin target above 17% for 2025 is maintained; EBITDA CAGR for 2023–2025 now projected at 11%.