Stella-Jones Inc. announced financial results for its Q1 ended March 31, 2023. Sales in the Q1 2023 were up 9% to $710 million, compared to $651 million last year. Excluding the contribution from the acquisition of the utility pole manufacturing business of Texas Electric Cooperatives, Inc. and the positive effect of currency conversion, sales were up nine million dollars or 1%. The increase was driven by an 18% organic sales growth of the Company’s infrastructure-related businesses, namely utility poles, railway ties and industrial products, offset in large part by lower residential lumber and logs and lumber sales when compared to the same period last year.
Led by the strong organic sales growth, particularly for the Company’s largest product category, utility poles, EBITDA increased to $120 million in the Q1 2023 compared to $88 million in the Q1 last year and EBITDA margin expanded from 13.5% in 2022 to 16.9%.
“The Company had an excellent start to the year, propelled by the momentum of our growth in 2022,” said Eric Vachon, President and CEO of Stella-Jones. “Our record results in Q1 featured strong sales, higher EBITDA and margin, and were marked by an out-performance of our utility poles product category, which saw a 29% organic sales increase. Our Q1 results also reflected steady sales growth in railway ties, aligned with our expectations for this product category, and an anticipated pullback in residential lumber sales compared to 2022.”
“Stella-Jones’ performance in the Q1 further evidenced our ongoing proactivity in securing fibre supply and increasing pole production capacity, and our financial strength to support growth. We are executing on our plan to grow our infrastructure-related businesses, and deliver on our commitment to return capital to shareholders. As we continue to invest in our business and seek expansion opportunities, we are fulfilling or exceeding the objectives laid out in our 3-year plan and I am proud of our business for continuously delivering such a high standard of service to our customers,” he concluded.
Stella-Jones Inc. is North America’s leading producer of pressure-treated wood products.
