Stella-Jones Inc

Latest Results (22.05.2026):

Stella-Jones Inc — reporting on the fourth quarter of 2025 (and full year 2025) — delivered sales in line with guidance, with Q4 sales of $727 million and full-year sales of $3,492 million. Full-year operating income was $516 million (which includes a $28 million insurance settlement gain) and EBITDA for 2025 was $661 million (18.9% margin). The company generated strong operating cash flow of $557 million, maintained net debt-to-EBITDA at 2.4x, and announced a US$50 million greenfield steel lattice facility investment in the U.S. while continuing M&A activity (Locweld and Brooks).

Headline financials

Q4-2025 sales: $727M versus $730M in Q4-2024. FY2025 sales: $3,492M (in line with guidance). Q4 net income: $50M, EPS $0.91. FY net income: $337M, EPS $6.09 (includes the $28M pre-tax insurance settlement gain).

Profitability and margins

Q4 gross profit $143M (19.7% margin) vs $138M (18.9%) a year earlier. Q4 EBITDA $122M (16.8% margin) vs $115M (15.8%). FY EBITDA $661M (18.9% margin), up from $633M (18.2%); the insurance settlement added ~0.8 percentage points to FY EBITDA margin.

Cash flow, liquidity and leverage

Operating cash flow for 2025 was $557M. Available liquidity stood at $634M at year‑end. Net debt-to-EBITDA was 2.4x (within target range).

Capital allocation and shareholder returns

The company used cash flow for acquisitions (Locweld and Brooks totaling ~$259M), capex and returned $158M to shareholders in 2025 — reaching $506M total returns over 2023–2025 (exceeding its $500M target). Annual dividend for 2025 was $1.24/share (up 11%); quarterly dividend declared at $0.34/share.

Operational / segment performance

Utility products (largest segment) showed strong volume momentum: Q4 utility sales $447M (up from $385M Q4-2024), and FY utility sales $1,822M (up vs $1,705M). Offsets included weaker railway ties (Q4 ties down to $162M from $193M; FY ties down to $821M from $890M) and reduced logs & lumber trading activity.

M&A and growth investments

Acquisitions: Locweld and Brooks contributed $66M to FY sales and $26M to Q4 sales. Post year-end, the Board approved ~US$50M for a new ~20,000-ton steel lattice manufacturing facility in the southeastern U.S., expected fully commissioned by end-2027 to capture rising infrastructure demand.

Other notable items

The FY2025 results include a $28M pre-tax insurance settlement gain that boosted operating income and EBITDA. The company also noted higher manufacturing and depreciation expense and FX effects when reconciling gross profit year‑over‑year.