Stella-Jones sees FY25 revenue C$3.5B

The Company has updated its sales objective and now expects sales to be approximately $3.5 billion in 2025, including the acquisition of Locweld, compared to the previous sales objective of approximately $3.6 billion. Largely influenced by ongoing macroeconomic challenges, the revision was primarily driven by lower-than-expected organic sales growth in utility poles in the first half of the year and a projected low single-digit growth for the remainder of the year, with a return to mid-single digit growth anticipated towards the end of 2025. The revised sales guidance also reflects lower-than expected railway ties sales growth in 2025, as the reduction in sales which resulted from a Class 1 railroad customer’s shift to treating railway ties in-house is not expected to be recovered by year-end. The Company now expects a modest year-over-year decline in railway ties sales, in the low single-digit range. The Company is maintaining its EBITDA margin, cumulative capital return and leverage targets over 2023-2025 outlook period. Since 2023, the Company has delivered a significant improvement in EBITDA margin. It generated an EBITDA margin of 18% in 2023 and 2024 and expects to generate an above 17% margin in 2025. As at June 30, 2025, the Company had returned to shareholders $417 million out of the $500 million target, through dividends and share repurchases, and its net debt-to-EBITDA ratio stood at 2.4x. The financial objectives do not include the impact of future acquisitions and assume that foreign currency exchange rates remain generally consistent with current levels.