Stella-Jones Inc. announced financial results for its Q4 and year ended December 31, 2022. Sales for the Q4 2022 increased by 22% to $665 million, compared to sales of $545 million for the same period in 2021. The growth was driven by the sales of the Company’s infrastructure-related businesses, namely utility poles, railway ties and industrial products, which grew by 17% compared to the same period last year. Higher pricing across all product categories, particularly utility poles and railway ties, and increased demand for utility poles were partially offset by lower railway ties and residential lumber volumes.
Sales in 2022 were up 11% to $3,065 million, compared to $2,750 million in 2021. Infrastructure-related sales grew by 14%, while residential lumber sales were lower compared to the record high sales in 2021. Pricing gains across all infrastructure-related product categories and increased maintenance and project-related demand for utility poles were partially offset by lower sales volumes for railway ties and residential lumber. The decrease in logs and lumber sales was largely driven by lower lumber sales activity compared to the prior year.
FY 2022 EBITDA up 12% to $448 million, from $400 million in 2021. Net income reached $241 million, or $3.93 per share in 2022.
“Stella-Jones concluded 2022 on a very strong note, and I am proud of the robust performance we delivered as a Company,” said Eric Vachon, President and CEO of Stella-Jones. “Our Q4 sales continued their upward trajectory, reflecting more than a 25% organic increase in utility poles sales, sustained growth in railway ties sales and better than anticipated residential lumber sales. Our exceptional results in 2022 can be credited to several contributors, from the efforts of our dedicated team to our expansive North American network. In a year of challenging market and macroeconomic conditions, our proven ability to procure the fibre required to meet customer demand and pass through cost increases were true keystones of our success, and a testament to the resilient character of our business model.
Stella-Jones Inc. is North America’s leading producer of pressure-treated wood products.
