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Stella-Jones Reports Resilient Q2 Results Amid Strategic Expansion

Story Highlights
  • Stella-Jones reported a 1% sales decline in Q2 2025 but maintained strong profitability.
  • The acquisition of Locweld expands Stella-Jones into the steel market, enhancing growth potential.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Stella-Jones Reports Resilient Q2 Results Amid Strategic Expansion

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The latest update is out from Stella-Jones ( (TSE:SJ) ).

Stella-Jones Inc. reported a slight decrease in sales for the second quarter of 2025, with revenues totaling $1,034 million, a 1% decline from the previous year. Despite this, the company maintained strong profitability, with an EBITDA margin of 18.3%. The acquisition of Locweld, a steel transmission structure manufacturer, marks a strategic expansion into the steel market, positioning Stella-Jones to capitalize on new investment opportunities and support long-term customer plans. The company remains optimistic about maintaining healthy profitability levels, even with a revised revenue outlook.

The most recent analyst rating on (TSE:SJ) stock is a Buy with a C$86.00 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.

Stella-Jones scores a solid 78, reflecting its robust financial performance, particularly in cash flow generation and revenue growth. The technical indicators suggest a stable stock price with potential short-term fluctuations. The reasonable valuation and consistent dividend growth further support the stock’s attractiveness. While there are minor challenges, such as a decline in utility pole volumes, the overall outlook remains positive due to the company’s strong financial position and strategic initiatives.

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

More about Stella-Jones

Stella-Jones Inc. operates in the infrastructure sector, focusing on producing pressure-treated wood products, including utility poles and railway ties. The company has a significant market presence and is expanding its infrastructure offerings through strategic acquisitions.

Average Trading Volume: 89,740

Technical Sentiment Signal: Strong Buy

Current Market Cap: C$4.41B

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

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