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Stella-Jones Inc Logo

Stella-Jones Inc
TSX:SJ

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Stella-Jones Inc Logo
Stella-Jones Inc
TSX:SJ
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Profitability
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Discount Rate
Price: 83.94 CAD 0.23%
Market Cap: 4.6B CAD
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Stella-Jones Inc
83.94
+0.19 (+0.23%)
52 Week Range
63.07
83.94
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Stella-Jones Inc
Investor Relations

Stella-Jones Inc. began its journey in the early 1990s as a modest company with its roots deeply embedded in the production of treated wood products. Initially, Stella-Jones focused on railway ties and utility poles, two critical components of North America's infrastructure. As the years progressed, the company carved a niche for itself by capitalizing on the consistent demand for these products and the rigorous standards they must meet for safety and longevity. The acquisition of various wood-treating facilities across the continent allowed Stella-Jones to bolster its production capacity and enhance its service offerings. This strategic expansion positioned Stella-Jones as a leading provider to key industries like railway operators, electrical utilities, and telecommunication customers across Canada and the United States.

Fast forward to today, Stella-Jones generates revenue through a well-diversified portfolio that extends beyond railway ties and utility poles to other treated wood products, including residential lumber, industrial products, and marine timber. The company's business model thrives on long-term contracts and agreements, securing a stable income flow by consistently meeting industry standards and ensuring timely delivery to its clients. Stella-Jones further differentiates itself through its commitment to sustainable practices, prominently sourcing wood from responsibly managed forests. This approach not only aligns with growing environmental concerns but also fortifies its supply chain, ensuring it remains a pivotal player in the wood products sector by providing essential materials that support vital infrastructure.

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Stella-Jones Inc
Business Overview

Stella-Jones Inc. began its journey in the early 1990s as a modest company with its roots deeply embedded in the production of treated wood products. Initially, Stella-Jones focused on railway ties and utility poles, two critical components of North America's infrastructure. As the years progressed, the company carved a niche for itself by capitalizing on the consistent demand for these products and the rigorous standards they must meet for safety and longevity. The acquisition of various wood-treating facilities across the continent allowed Stella-Jones to bolster its production capacity and enhance its service offerings. This strategic expansion positioned Stella-Jones as a leading provider to key industries like railway operators, electrical utilities, and telecommunication customers across Canada and the United States.

Fast forward to today, Stella-Jones generates revenue through a well-diversified portfolio that extends beyond railway ties and utility poles to other treated wood products, including residential lumber, industrial products, and marine timber. The company's business model thrives on long-term contracts and agreements, securing a stable income flow by consistently meeting industry standards and ensuring timely delivery to its clients. Stella-Jones further differentiates itself through its commitment to sustainable practices, prominently sourcing wood from responsibly managed forests. This approach not only aligns with growing environmental concerns but also fortifies its supply chain, ensuring it remains a pivotal player in the wood products sector by providing essential materials that support vital infrastructure.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Nov 5, 2025
AI Summary
Q3 2025

Sales Growth: Stella-Jones posted a 2% organic sales increase and a total sales rise of 5% in Q3, supported by strong utility pole volumes and the Locweld acquisition.

Utility Poles: Utility pole sales grew to $480 million with a 5% volume increase, though spot market pricing was down 3% due to ongoing market pressures.

Railway Ties: Sales rose $6 million to $211 million, driven entirely by better pricing, but future volumes face headwinds from a key customer shifting to internal treatment.

Profitability: EBITDA increased to $171 million, while EBITDA margin remained strong at 17.8%, supported by higher sales volumes and effective margin management.

Cash Flow & Leverage: Operating cash flow hit $198 million, inventories were reduced, and net debt-to-EBITDA improved to 2.2x.

Outlook & Guidance: Full-year guidance was maintained, with utility pole sales expected to see low-single-digit year-over-year growth and railway ties facing a mid-single-digit decline.

Strategic Moves: The Brooks acquisition expands the product offering, and capital projects, including steel structure capacity expansion, remain on track for completion by mid-2026.

Shareholder Returns: $454 million out of a planned $500 million returned to shareholders since 2023, and a new share buyback program for up to 1.5 million shares was authorized.

Key Financials
Sales
$943 million
Organic Sales Growth
2%
EBITDA
$171 million
EBITDA Margin
17.8%
Utility Pole Sales
$480 million
Utility Poles Volume
up 5%
Utility Poles Pricing
down 3%
Railway Ties Sales
$211 million
Railway Ties Pricing
up 2%
Residential Lumber Sales
$201 million
Cash from Operating Activities
$198 million
Net Debt to EBITDA
2.2x
Available Liquidity
$780 million
Dividend per Share
$0.31
Shares Repurchased (2023-2025)
$454 million
Share Buyback Authorization
up to 1.5 million shares (2.7% of outstanding)
Capital Expenditures
$85–$90 million (expected range)
Earnings Call Recording
Open Full Analysis Open Transcript
Other Earnings Calls
2025
Q3 Q2 Q1
2024
Q4 Q3 Q2 Q1
2023
Q4 Q3 Q2 Q1
2022
Q4 Q3 Q2 Q1
2021
Q4 Q3 Q2 Q1
2020
Q4 Q3 Q2 Q1
2019
Q4 Q3 Q2 Q1
2018
Q4 Q3 Q2 Q1
2017
Q4

Management

Mr. Eric Vachon CA, CPA
CEO, President & Director
No Bio Available
Ms. Silvana Travaglini C.A., CPA
Senior VP & CFO
No Bio Available
Ms. Marla Eichenbaum
VP, General Counsel & Secretary
No Bio Available
Ms. Stephanie Corrente
Director of Corporate Communications
No Bio Available
Mr. Marco R. Albanesi
Vice-President of Corporate Development & Treasury
No Bio Available
Mr. Richard Cuddihy
Senior VP & Chief People Officer
No Bio Available
Jeremy Meyer
Vice President of Utility Pole Sales at Stella-Jones Corporation
No Bio Available
Steve Bryant
Vice President of Operations Southern Yellow Pine-West of Stella-Jones Corporation
No Bio Available
Joel Alexander
Vice President of Procurement Southern Yellow Pine of Stella-Jones Corporation
No Bio Available

Contacts

Address
QUEBEC
Saint-Laurent
3100 De la Cote-Vertu Blvd Suite 300
Contacts
+15149348666.0
www.stella-jones.com
sparklesyt

See Also

Summary
SJ intrinsic value, competitors valuation, and company profile.
DCF Valuation
SJ stock valuation using Discount Cash Flow valuation method.
Relative Valuation
SJ stock valuation using valuation multiples.
Wall Street Estimates
SJ price targets and financial estimates made by Wall st analysts.
Profitability Analysis
Detailed analysis of the company's profitability.
Solvency Analysis
Analysis of the financial position and solvency of the company.
Financials
Income Statement, Balance Sheet, Cash Flow Statement.
Discount Rate
SJ stock discount rate: cost of equity and WACC.
Summary
DCF Valuation
Relative Valuation
Wall Street Estimates
Profitability Analysis
Solvency Analysis
Financials
Discount Rate
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Stella-Jones Inc
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How does Stella-Jones Inc return cash to shareholders?
Summarize how Stella-Jones Inc returns cash to shareholders through dividends, buybacks, and debt reduction over the past 12 months. Present results in a concise table with columns: Component | Amount | Yield. After the table, calculate and show a one-line “Shareholder Yield” — the combined impact of dividends, buybacks, and net debt paydown. Conclude with one short verdict: whether Stella-Jones Inc is returning capital generously, moderately, or minimally.
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Analyze what drives margins for Stella-Jones Inc
Explain what drives Stella-Jones Inc's profitability. Break down gross, operating, and net margins, what influences each, and which parts of the business have the most leverage. End with a short summary.
SJ
How does Stella-Jones Inc return cash to shareholders?
Summarize how Stella-Jones Inc returns cash to shareholders through dividends, buybacks, and debt reduction over the past 12 months. Present results in a concise table with columns: Component | Amount | Yield. After the table, calculate and show a one-line “Shareholder Yield” — the combined impact of dividends, buybacks, and net debt paydown. Conclude with one short verdict: whether Stella-Jones Inc is returning capital generously, moderately, or minimally.
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