Stella-Jones (TSE:SJ) Announces Quarterly Earnings Results

Stella-Jones (TSE:SJ) issued its earnings results on Thursday. The company reported C$0.91 EPS for the quarter, FiscalAI reports. Stella-Jones had a net margin of 9.43% and a return on equity of 18.36%. The company had revenue of C$727.00 million for the quarter.

Here are the key takeaways from Stella-Jones’ conference call:

• Acquisitions (Locweld and Brooks) broaden Stella‑Jones’ infrastructure addressable market—Brooks added pole fixtures/accessories and was closed for ~CAD 140 million without increasing leverage—and integration is progressing in line with expectations.
• U.S. greenfield lattice tower facility (≈US$50 million) will add ~20,000 tons of capacity (commissioning late 2027, full three‑shift capacity by end‑2028) to support growing U.S. utility demand and complement the Kandiyohi expansion.
• Strong cash generation and margins — FY sales of CAD 3.5 billion, operating cash flow CAD 557 million, free cash flow >CAD 400 million, and an EBITDA margin of ~18.1% (ex insurance); the company returned CAD 506 million to shareholders and raised the quarterly dividend 10% to CAD 0.34.
• Railway tie headwinds — Q4 tie sales fell 16% (full‑year organic ties down ~10%) due to a Class I customer moving to in‑house treatment, project deferrals and heightened competition; management now expects flat tie volumes in 2026 and flags near‑term weakness.
• CapEx and working capital outlook — baseline maintenance CapEx remains CAD 85–95M, remaining Locweld spend (~CAD 7–8M) and the US facility are split across 2026–27, and management expects to invest roughly 40% of wood‑treating sales growth into additional working capital.

Stella-Jones Stock Down 3.4%

Shares of SJ stock traded down C$3.26 on Thursday, hitting C$92.34. The stock had a trading volume of 195,765 shares, compared to its average volume of 127,608. Stella-Jones has a 52-week low of C$62.26 and a 52-week high of C$101.31. The firm has a market capitalization of C$5.07 billion, a price-to-earnings ratio of 15.11, a P/E/G ratio of 2.40 and a beta of -0.17. The company has a debt-to-equity ratio of 87.53, a quick ratio of 1.20 and a current ratio of 6.85. The stock’s 50 day moving average is C$91.20 and its 200-day moving average is C$84.46.

Wall Street Analyst Weigh In

SJ has been the topic of several research reports. TD Securities raised their price objective on shares of Stella-Jones from C$90.00 to C$97.00 and gave the stock a “buy” rating in a research report on Thursday, November 6th. Raymond James Financial set a C$100.00 target price on Stella-Jones and gave the stock an “outperform” rating in a research note on Thursday, November 20th. National Bank Financial raised their price objective on shares of Stella-Jones from C$95.00 to C$107.00 and gave the company an “outperform” rating in a research note on Monday, December 15th. Desjardins set a C$102.00 price objective on shares of Stella-Jones and gave the stock a “buy” rating in a research report on Friday, December 12th. Finally, Scotiabank raised Stella-Jones from a “hold” rating to an “outperform” rating and raised their price target for the stock from C$88.00 to C$98.00 in a research report on Thursday, January 29th. Five equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Stella-Jones currently has an average rating of “Moderate Buy” and a consensus target price of C$98.71.

About Stella-Jones

Stella-Jones Inc produces and sells lumber and wood products. The company operates in two segments: Pressure-treated wood, which includes utility poles, railway ties, residential lumber, and industrial products; and Logs & Lumber segment comprises of the sales of logs harvested in the course of the company’s procurement process that is determined to be unsuitable for use as utility poles, it also includes the sale of excess lumber to local home-building markets. The vast majority of its revenue comes from the Pressure-treated wood segment.