Feb 26, 2026 (MarketLine via COMTEX) --
The company announced its fourth-quarter financial results.
Stella-Jones Inc. (TSX: SJ) ("Stella-Jones" or the "Company") today announced its financial results for the fourth quarter and for its fiscal year ended December 31, 2025.
"We closed the year with sales in line with expectations, continued momentum in utility product volumes, and EBITDA margin exceeding our target, despite less favorable market conditions," said Eric Vachon, President and CEO of Stella-Jones. "Our strong performance was enhanced by significant progress in executing our growth strategy, thanks to the successful completion of new opportunities that strengthen our presence in the utilities sector. The recent acquisitions of Locweld and Brooks expand our capabilities in the electricity transmission and distribution market and reinforce our position as the preferred partner for our infrastructure customers."
"At the start of fiscal year 2026, we plan to capitalize on the favorable momentum by investing in the development of our steel truss structure business in the United States, with the construction of a new manufacturing facility, to meet growing market demand. We are excited about the opportunities before us and remain committed to creating shareholder value as we pursue our growth initiatives," concluded Mr. Vachon.
Fourth quarter results
Sales in the fourth quarter of 2025 totaled $727 million, compared to $730 million in the same period of 2024. Excluding the $26 million contribution from the acquisitions of Locweld Inc. ("Locmeld") and Brooks Manufacturing Co. ("Brooks"), sales of pressure-treated wood products declined by $14 million, or 2%, due to lower volumes of railway ties and slower demand for residential lumber. This decrease was partially offset by higher sales of products to utilities, which benefited from increased demand. Sales of logs and lumber decreased by $15 million, primarily due to lower trading activity, compared to the fourth quarter of the previous fiscal year.
Pressure-treated wood products :
Products for Utilities (61% of Q4-25 Sales) : Sales of products for utilities increased to $447 million in the fourth quarter of 2025, compared to $385 million in the same period in 2024. Excluding the contribution from the Locweld and Brooks acquisitions, sales of products for utilities increased by $36 million, or 9%, compared to the same period last year. This increase was driven by improved sales volumes, while sales prices remained relatively stable overall. The majority of the volume gains were attributable to securing new contract commitments in 2023 and 2024, as well as increased purchasing activity from certain customers, which began in the third quarter and continued throughout the fourth quarter.
Railway ties (22% of Q4-25 sales) : Railway ties sales declined by $31 million in the fourth quarter of 2025 to $162 million, compared to $193 million in the same period last year. The decline is largely attributable to lower shipments compared to the same period of the prior year, due to increased competitive pressures and calendar-related factors.
Residential lumber (11% of Q4-25 sales) : Sales of residential lumber declined to $80 million in the fourth quarter of 2025, compared to $93 million in the same period of the previous year. While selling prices remained relatively stable compared to the same period last year, the decline is attributable to lower sales volumes.
Industrial products (3% of sales in Q4-25) : Sales of industrial products declined by $6 million to $25 million in the fourth quarter of 2025, compared to $31 million in the corresponding period of the previous fiscal year, mainly due to project timing.
Logs and timber :
Logs and lumber (3% of sales in Q4-25) : Sales in the logs and lumber category totaled $13 million in the fourth quarter of 2025, compared to sales of $28 million in the same period in 2024. The decline in sales compared to the fourth quarter of 2024 is due to a decrease in logs and lumber trading activity.
Gross profit was $143 million in the fourth quarter of 2025 compared to $138 million in the fourth quarter of 2024. Expressed as a percentage of sales, gross profit increased from 18.9% in the fourth quarter of 2024 to 19.7% in the fourth quarter of 2025. The increase in gross profit, both in absolute dollars and as a percentage of sales, is largely attributable to higher sales in the higher-margin utility products category.
Similarly, operating income increased by $2 million to $83 million in the fourth quarter of 2025, compared to $81 million in the same period last year. EBITDA increased by $7 million to $122 million, representing an EBITDA margin of 16.8%, compared to EBITDA of $115 million, or an EBITDA margin of 15.8%, in the fourth quarter of 2024.
Net income for the fourth quarter of 2025 was $50 million, or $0.91 per share, compared to net income of $52 million, or $0.93 per share, in the corresponding period in 2024.
Results for the 2025 financial year
Sales for the fiscal year ended December 31, 2025, totaled $3,492 million, compared to $3,469 million in 2024. Excluding the contribution of $66 million from acquisitions and the impact of currency translation of $53 million, pressure-treated lumber sales declined by $64 million, or 2%. This decline resulted from lower volumes of railway ties and residential lumber. The decrease was partially offset by increased demand for products destined for utilities and more favorable selling prices for residential lumber. The decline in log and lumber sales compared to last year is largely attributable to a decrease in log and lumber trading activity.
Pressure-treated wood products :
Products for Utilities (52% of sales in 2025) : Sales of products for utilities increased to $1,822 million in 2025, compared to $1,705 million in 2024. Excluding the contribution of the Locweld and Brooks acquisitions in 2025 and the impact of currency translation, sales of products for utilities increased by $20 million, or 1%. This increase was driven by volume growth, primarily fueled by new contract commitments, and by an increased pace of wood pole purchases by certain customers in the latter part of 2025. Despite a decline in cash market prices compared to the prior year, selling prices remained relatively stable.
Railway ties (24% of sales in 2025) : Railway ties sales totaled $821 million in 2025, compared to $890 million in 2024. Excluding the impact of currency translation, railway ties sales declined by $86 million, or 10%. This decline was attributable to lower sales volumes, primarily resulting from a Class 1 railway operator's decision to handle ties processing in-house, project delays for non-Class 1 railway operators, and increased competitive pressures.
Residential lumber (18% of sales in 2025) : Sales in the residential lumber category remained relatively stable at $615 million in 2025, compared to $614 million in 2024. Excluding the impact of currency translation, residential lumber sales declined by $2 million, as weaker consumer demand compared to 2024 was largely offset by higher selling prices. Despite a slowdown in the lumber market, selling prices in 2025 remained higher than in 2024, supported by the higher average cost of inventory acquired earlier in the year.
Industrial products (5% of sales in 2025) : Sales of industrial products totaled $160 million in 2025, compared to sales of $154 million in 2024. Excluding the effect of currency translation, sales of industrial products increased by $4 million, or 3%, mainly due to increased demand generated by projects.
Logs and timber :
Logs and lumber (1% of sales in 2025) : Sales in the logs and lumber category totaled $74 million in 2025, down from $106 million in 2024. The decline in sales is explained by a decrease in logs and lumber trading activity in 2025.
Gross profit was $705 million in 2025, compared to $724 million in 2024, representing margins of 20.2% and 20.9%, respectively. The decrease is largely attributable to higher manufacturing costs and depreciation charges, partially offset by additional gross profit from acquisitions made in 2025 and the positive impact of currency translation.
Operating income was $516 million, compared to $503 million a year earlier, while EBITDA was $661 million, representing a margin of 18.9%, compared to $633 million, or a margin of 18.2%, last year. The gain on the insurance settlement recognized in 2025 increased EBITDA by $28 million and the EBITDA margin by 0.8%.
Net income was $337 million, or $6.09 per share, which includes a pre-tax gain on the insurance settlement of $28 million, compared to net income of $319 million, or $5.66 per share, in 2024.
Liquidity and capital resources
During the fiscal year ended December 31, 2025, Stella-Jones used $557 million in cash generated from its operations to expand its infrastructure product offering through the $259 million acquisitions of Locweld and Brooks, invest in its business, and return $158 million to shareholders, meeting its target of returning $500 million in capital over the 2023-2025 period, with total capital returns reaching $506 million. The 2025 dividend was $1.24 per share, an 11% increase over 2024.
As of December 31, 2025, the Company's financial position remained solid. It had available cash of $634 million and net debt to EBITDA was within the target range of 2.4x.
2 Sum of cash and cash equivalents and unused credit facilities, net of outstanding letters of credit and certain guarantees.
Investment in a new steel truss structure manufacturing facility in the United States
Following the close of the fiscal year, the Board of Directors approved an investment of approximately US$50 million to increase the Company's steel truss production capacity. This investment will fund a new 20,000-ton manufacturing facility located in the southeastern United States. Currently in the final stages of site selection, the facility is designed to meet the growing demand from utilities in the United States. Full commissioning of the facility is expected by the end of 2027.
Financial objectives
The financial targets set for the years 2026 to 2028 were included in the press release published on November 20, 2025 as part of the presentation to investors.
As evidenced by its 2025 results, the Company has met, and in some cases exceeded, its previously announced financial targets. Please refer to the updated financial targets presented in the Company's Management's Discussion and Analysis for the second quarter of 2025, dated August 6, 2025.
The quarterly dividend was increased by 10% to $0.34 per share.
On February 25, 2026, the Board of Directors declared a quarterly dividend of $0.34 per common share, payable on April 24, 2026 to shareholders of record of the Company at the close of business on April 2, 2026. This is an eligible dividend.
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COMTEX_478043233/2227/2026-04-27T05:29:16
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