Stella-Jones (TSE:SJ) Announces Earnings Results

Stella-Jones (TSE:SJ) issued its earnings results on Thursday. The company reported C$0.91 earnings per share (EPS) for the quarter, FiscalAI reports. Stella-Jones had a return on equity of 18.36% and a net margin of 9.43%.The business had revenue of C$727.00 million during 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 Trading Up 1.0%

Shares of SJ opened at C$93.61 on Friday. Stella-Jones has a 1-year low of C$62.26 and a 1-year high of C$101.31. The company has a current ratio of 6.85, a quick ratio of 1.20 and a debt-to-equity ratio of 87.53. The firm’s 50-day moving average price is C$91.47 and its 200-day moving average price is C$84.63. The firm has a market capitalization of C$5.14 billion, a price-to-earnings ratio of 15.32, a PEG ratio of 2.40 and a beta of -0.17.

Analysts Set New Price Targets

Several equities analysts recently commented on SJ shares. Scotiabank raised shares of Stella-Jones from a “hold” rating to an “outperform” rating and increased their target price for the company from C$88.00 to C$98.00 in a report on Thursday, January 29th. National Bank Financial raised their price objective on 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 target price on Stella-Jones and gave the company a “buy” rating in a research note on Friday, December 12th. TD Securities increased their target price on Stella-Jones from C$90.00 to C$97.00 and gave the company a “buy” rating in a report on Thursday, November 6th. Finally, Royal Bank Of Canada raised their price target on Stella-Jones from C$89.00 to C$95.00 in a research report on Friday. Five investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of C$99.86.

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.