Stella-Jones' 1Q 2021 sales reached $623 million, up $115 million, versus sales of $508 million for the corresponding period last year.
The strong sales growth led to an increase in gross profit, which grew 35% to $112 million, compared to the prior year period, while operating income was $82 million, or 13.1% of sales, compared with $45 million, or 8.8% of sales last year.
1Q 2021 EBITDA rose to $99 million, up 57%, compared to $63 million reported in the 1Q 2020. The increase was primarily driven by sales price increases for residential lumber, which exceeded the higher cost of lumber, stronger residential lumber demand, as well as operational efficiency gains. Improved pricing for utility poles and volume gains for railway ties were largely offset by pricing pressures for the non-Class 1 railway ties business.
Net income for the 1Q 2021 was $56 million, or $0.85 per share, double the net income of $28 million, or $0.41 per share, in the corresponding period of 2020.
“We had an exceptionally robust start to the year, continuing our momentum of growth. Our 1Q performance was fueled by record pricing and volume gains in the residential lumber product category, solid utility poles results, and strong railway ties demand tempered by pricing pressures in certain markets. EBITDA grew by 57% to an all-time 1Q high of $99 million and net income doubled to $56 million compared to the same period last year,” stated Éric Vachon, President and CEO of Stella-Jones.
Stella-Jones Inc. is a leading producer and marketer of pressure-treated wood products.