Stella-Jones Inc. (TSX: SJ) (¡°Stella-Jones¡± or the ¡°Company¡±)
announced financial results for its fourth quarter and year
ended December 31, 2024.
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FOURTH QUARTER RESULTS
Sales for the fourth quarter of 2024 amounted to $730
million, up 6% from sales of $688 million for the same period in
2023. Excluding the currency conversion of $14 million,
pressure-treated wood sales rose $31 million, or 5% due to
higher railway ties sales attributable to an increase in Class 1
volumes and improved residential lumber sales, while utility
poles sales were relatively unchanged. Lower logs and lumber
sales were driven by a decrease in log sales activity, compared
to the fourth quarter last year.
Gross profit was $138 million in the fourth quarter of 2024,
relatively unchanged compared to the gross profit of $137
million in the fourth quarter of 2023. As a percentage of sales,
gross profit decreased from 19.9% in the fourth quarter of 2023
to 18.9% in the fourth quarter of 2024 due to a less favourable
sales mix.
Net income for the period amounted to $52 million, or $0.93 per
share, compared with $56 million, or $0.98 per share, in the
corresponding period of 2023.
2024 RESULTS
Sales for the year ended December 31, 2024 reached $3,469
million, up 5%, versus sales of $3,319 million in 2023.
Excluding the contribution from the acquisition of the Baldwin
assets of $25 million and the currency conversion effect of $36
million, pressure-treated wood sales rose $110 million, or 3%.
Infrastructure sales, namely utility poles, railway ties and
industrial products, grew organically by $144 million or 6%,
while residential lumber sales decreased by $34 million.
Favourable pricing across all the infrastructure product
categories and higher railway ties volumes were partially offset
by lower volumes for utility poles and residential lumber. The
decrease in logs and lumber sales compared to last year was
largely attributable to less logs sales.
Gross profit increased to $724 million in 2024, compared to $688
million in 2023, representing a margin of 20.9% and 20.7%
respectively. Similarly, EBITDA increased to $633 million in
2024 compared to $608 million in 2023, largely due to the sales
growth of the Company¡¯s infrastructure product categories.
EBITDA margin remained relatively unchanged at 18.2% in 2024,
compared to 18.3% in 2023.
Net income in 2024 was $319 million, compared to net income of
$326 million in 2023. Despite the lower net income, earnings per
share in 2024 was higher at $5.66 versus $5.62 in 2023 due to
the continued repurchase of shares through the Company¡¯s normal
course issuer bids.
ABOUT STELLA-JONES
Stella-Jones Inc. (TSX: SJ) is a leading North American
manufacturer of products focused on supporting infrastructure
that are essential to the delivery of electrical distribution
and transmission, and the operation and maintenance of railway
transportation systems. It supplies the continent¡¯s major
electrical utilities companies with treated wood utility poles
and North America¡¯s Class 1, short line and commercial railroad
operators with treated wood railway ties and timbers. It also
supports infrastructure with industrial products, namely timbers
for railway bridges, crossings and construction, marine and
foundation pilings, and coal tar-based products. Additionally,
the Company manufactures and distributes premium treated
residential lumber and accessories to Canadian and American
retailers for outdoor applications, with a significant portion
of the business devoted to servicing Canadian customers through
its national manufacturing and distribution network.
Source:
globenewswire.com
