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Stella-Jones Hits 2025 Targets and Expands U.S. Infrastructure Footprint

Story Highlights
  • Stella-Jones delivered 2025 results in line with guidance, with strong EBITDA, cash flow and utility product momentum offsetting softer railway ties and residential lumber.
  • The company deepened its utility sector focus through acquisitions and will build a new U.S. steel lattice facility to capitalize on accelerating infrastructure spending.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Stella-Jones Hits 2025 Targets and Expands U.S. Infrastructure Footprint

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Stella-Jones ( (TSE:SJ) ) has issued an update.

Stella-Jones reported 2025 sales of $3.5 billion, in line with its guidance, with operating income of $516 million and EBITDA of $661 million, reflecting an 18.9% margin and strong cash flow of $557 million. The company met or exceeded its 2023-2025 financial objectives, saw robust volume momentum in utility products despite softer residential and railway tie demand, and maintained a net debt-to-EBITDA ratio of 2.4.

Utility products led fourth-quarter performance with higher volumes driven by new contracts and increased customer purchasing, offsetting weaker railway ties and residential lumber. Building on the recent acquisitions of Locweld and Brooks, Stella-Jones is investing in a new U.S. greenfield steel lattice manufacturing facility to capture accelerating infrastructure spending, reinforcing its push deeper into the utility sector and supporting its 2026-2028 growth targets.

The most recent analyst rating on (TSE:SJ) stock is a Buy with a C$106.00 price target. To see the full list of analyst forecasts on Stella-Jones stock, see the TSE:SJ Stock Forecast page.

Spark’s Take on TSE:SJ Stock

According to Spark, TipRanks’ AI Analyst, TSE:SJ is a Outperform.

The score is driven primarily by solid underlying financial performance (healthy margins, improved leverage, and strong recent cash flow). Technicals add moderate support with a stable uptrend versus longer-term averages and neutral momentum. Valuation is reasonable at a mid-teens P/E with a modest dividend, while earnings-call commentary is constructive but tempered by pricing pressure and segment volume headwinds.

To see Spark’s full report on TSE:SJ stock, click here.

More about Stella-Jones

Stella-Jones Inc., listed on the TSX, operates in the pressure-treated wood and related infrastructure products industry, supplying utility poles, railway ties and residential lumber, as well as steel lattice structures. The company focuses on North American infrastructure markets, particularly utility transmission and distribution, positioning itself as a key partner for infrastructure customers.

Average Trading Volume: 107,435

Technical Sentiment Signal: Buy

Current Market Cap: C$5.21B

For a thorough assessment of SJ stock, go to TipRanks’ Stock Analysis page.

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