Stella-Jones (SJ) Q4 2025 earnings summary

Executive summary

• Achieved strong profitability in 2025, meeting or exceeding 2023-2025 financial objectives and advancing infrastructure-focused strategy through strategic acquisitions (Brooks and Locweld) and a new U.S. steel lattice tower facility investment.

• Returned over CAD 500 million to shareholders over three years, surpassing the commitment.

• EBITDA margin exceeded targets, supported by robust Q4 performance in utility products and new steel/crossarm businesses.

• Integration of acquisitions progressed well with no increase in debt leverage.

• Formed a partnership with BC First Nations for long-term utility pole fiber supply.

Financial highlights

• Full-year sales reached $3,492 million (CAD 3.5 billion), up from $3,469 million in 2024, driven by utility pole volume gains, acquisitions, and favorable currency, offset by railway tie declines.

• Gross profit for 2025 was $705 million (20.2% margin); EBITDA was $661 million (18.9% margin); operating income was $516 million (14.8% margin).

• Net income for 2025 was $337 million, EPS at $6.09.

• Generated $557 million in operating cash flow and over $400 million in free cash flow.

• Available liquidity at year-end was $634 million.

Outlook and guidance

• Guidance for 2026-2028 set, building on momentum from 2025 and recent acquisitions, with multi-year EBITDA margin guidance at 17.5%–18.5%.

• Utility pole business expected to maintain mid-single digit growth in 2026; steel structure capacity expansion on track with new U.S. facility to add 20,000 tons by 2028.

• Railway tie business guided to flat sales in 2026, with long-term outlook unchanged.

• Residential lumber expected to remain in the $600–650 million revenue range, with low single-digit growth.