Stella-Jones Inc. announced financial results for its Q4 and year ended December 31, 2023.
Q4 RESULTS
Sales for the Q4 2023 amounted to $688 million, up 3% from sales of $665 million for the same period in 2022.
Gross profit was $137 million in the Q4 2023, versus $112 million, in the Q4 2022, representing a margin of 19.9% and 16.8% respectively. The increase in absolute dollars was largely attributable to the margin expansion for utility poles and railway ties, offset in part by lower sales volumes and a decrease in the gross profit of residential lumber. As a percentage of sales, the gross profit also benefited from a better product mix.
Similarly, operating income totaled $89 million in 2023 versus operating income of $61 million in the corresponding period of 2022, while EBITDA increased to $120 million, or a margin of 17.4%, compared to $87 million, or a margin of 13.1% reported in the Q4 2022.
Net income for the Q4 2023 was $56 million, or $0.98 per share, compared to net income of $36 million, or $0.61 per share, in the corresponding period of 2022.
2023 RESULTS
Sales in 2023 were up 8% to $3,319 million, compared to $3,065 million last year.
Gross profit was $688 million in 2023 compared to $524 million in 2022, representing a margin of 20.7% and 17.1%, respectively.
Operating income totaled $499 million in 2023 versus operating income of $359 million in 2022, while EBITDA increased 36% to $608 million in 2023, compared to $448 million in 2022. Benefiting from the strong organic sales growth and a better product mix, EBITDA margin expanded from 14.6% in 2022 to 18.3% in 2023.
Net income in 2023 was $326 million, versus net income of $241 million in 2022. Earnings per share in 2023 were $5.62, compared to earnings per share of $3.93 in 2022.
“We concluded 2023 with a marked improvement in profitability and the successful execution of investments to support the continued growth momentum in our infrastructure product categories," said Eric Vachon, President and CEO of Stella-Jones.
"Driven by the increased level of profitability, we announced a 22% growth in the Company's quarterly dividend. This is the 20th year of continuous dividend increases, which truly speaks to our confidence in the long-term financial strength of our business. We are optimistic that the thoughtful planning and execution of our business strategy, combined with recently set sustainability targets and our disciplined capital management, will enable us to sustain profitable growth and deliver meaningful value for all our stakeholders. On the heels of such a banner year for our business, Stella-Jones' growth prospects are promising, and we are ready for the future,” concluded Mr. Vachon.
Stella-Jones Inc. is a leading North American producer of pressure-treated wood products.
