The earnings call presented a mixed view, with strong financial margins and cash flow management being overshadowed by a decrease in sales and challenges in key product categories. The company remains confident in long-term demand but faces short-term headwinds in utility poles and railway ties due to deferred spending and project delays.
Company Guidance
During the Q3 2024 earnings call for Stella-Jones, the company provided updated guidance reflecting anticipated challenges and growth opportunities. Sales for 2024 were reported at $915 million, a 4% decrease year-over-year, primarily due to lower volumes across all product categories. The company revised its 3-year sales target to approximately $3.6 billion by 2025, reflecting adjustments in the utility poles market due to deferred spending by utilities and supply chain constraints. Despite this, Stella-Jones aims to sustain an EBITDA margin of over 17%, an increase from the original 16% target, with an expected EBITDA CAGR of 11% from 2023 to 2025. Year-to-date sales have increased by 4% to $2.7 billion, with an EBITDA of $518 million and an expanded EBITDA margin of 18.9%. The company anticipates continued demand growth in its product categories, particularly utility poles, and is pursuing strategic acquisitions to further enhance sales and profitability.
Strong EBITDA Margin Performance
The company expanded its EBITDA margin by over 300 basis points since 2022, achieving a margin of 17.7% for Q3 and 18.9% year-to-date, exceeding their original targets.
Positive Cash Flow and Capital Allocation
Generated strong operating cash flows of $186 million in Q3, bringing year-to-date operating cash flow to $301 million. Returned $112 million to shareholders through dividends and share repurchases.
Successful Bond Offering
Completed an inaugural bond offering of $400 million for 7 years at a rate of 4.3%, enhancing financial flexibility with almost $750 million of available capital.
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Stella-Jones (STLJF) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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STLJF Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Nov 06, 2024
$63.31
$53.07
-16.17%
Aug 07, 2024
$66.04
$62.21
-5.80%
May 08, 2024
$52.33
$58.06
+10.95%
Feb 29, 2024
$60.16
$54.55
-9.33%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Stella-Jones Inc (STLJF) report earnings?
Stella-Jones Inc (STLJF) is schdueled to report earning on Feb 27, 2025, TBA Not Confirmed.
What is Stella-Jones Inc (STLJF) earnings time?
Stella-Jones Inc (STLJF) earnings time is at Feb 27, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
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