Stella-Jones Inc. reported EBITDA of $661 million for the year ended December 31, 2025, a 4% increase from $633 million in 2024, driven by higher sales from the utility products segment and a $28 million insurance settlement gain.
Net income for the year was $337 million, or $6.09 per share, up from $319 million, or $5.66 per share in 2024. Sales reached $3.5 billion, in line with company guidance.
Utility products sales increased 7% to $1.8 billion, representing 52% of annual sales. Excluding acquisitions and currency effects, sales rose 1% on volume growth, driven by new contractual commitments and an increase in wood poles purchases by certain customers in the latter part of the year. Despite lower spot market pricing, overall pricing remained relatively stable.
Railway ties sales decreased 8% to $821 million, or 24% of sales. Excluding currency effects, sales fell 10% on lower volumes. The decrease resulted from a Class 1 customer shifting to in-house treating, project delays, and increased competitive pressures.
Residential lumber sales were relatively unchanged at $615 million, or 18% of sales. Softer consumer demand was largely offset by higher pricing, which remained above 2024 levels due to the higher average cost of inventory procured earlier in the year.
Industrial products sales increased 3% on a constant currency basis to $160 million, driven by higher project-driven demand.
Operating cash flow was a strong $557 million. The company maintained a healthy financial position with available liquidity of $634 million and a net debt-to-EBITDA ratio of 2.4 times, within its targeted range. It returned $506 million to shareholders over the 2023-2025 period, meeting its capital return objective.
Subsequent to year-end, the Board of Directors approved an investment of approximately US $50 million to build a new steel lattice structure manufacturing facility in the Southeastern United States. The facility, designed to meet growing demand from U.S. utilities, is expected to be fully commissioned by the end of 2027. The company has set new financial objectives for the 2026-2028 period.
Stella-Jones Inc. is a North American manufacturer of products focused on supporting infrastructure essential to the electrical distribution and transmission network, and the operation and maintenance of railway transportation systems.
