Stella-Jones (SJ) Q3 2025 earnings summary

Executive summary

• Achieved Q3 2025 sales of $958 million, a 5% year-over-year increase, with strong execution across all business segments and robust operating income and EBITDA growth, supported by organic sales and 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 wood distribution crossarm and transmission framing components, strengthening the utility sector position.

• Published latest ESG report, achieving limited assurance on Scope 1 and 2 GHG emissions and advancing emission reduction projects.

Financial highlights

• Organic sales grew 2% year-over-year; total sales up 5% including Lockwell acquisition, adding $43 million; Q3 EBITDA rose to $171 million with a 17.8% margin.

• Q3 2025 gross profit was $188 million (19.6% margin), operating income at $135 million (14.1% margin), and net income at $88 million.

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

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

• Residential lumber sales rose to $201 million from $191 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 2025 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 Class 1 customer changes.

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

• Full-year financial objectives maintained; confident in long-term sales growth for infrastructure categories, supported by a strong balance sheet and continued investment.

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