Stella-Jones' Q1 2025 sales remained relatively unchanged at $773 million, compared to $775 million in the corresponding period last year. Excluding the currency conversion effect of $38 million, pressure-treated wood sales decreased $36 million, or 5%, driven by lower volumes across most product categories, partially offset by favourable pricing for utility poles and residential lumber. The decrease in logs and lumber sales compared to the first quarter last year was largely attributable to less lumber trading activity.
Gross profit was $168 million in the Q1 2025 compared to $172 million in the corresponding period last year, representing a margin of 21.7% and 22.2%, respectively. The decrease in gross profit was largely driven by lower sales volumes across most product categories.
Despite lower sales volumes, operating income increased to $143 million in the Q1 2025, compared to $124 million in the corresponding period last year, due to the insurance settlement for a 2023 fire incident at one of the Company’s facilities that was recorded in Q1 2025.
Similarly, EBITDA increased to $179 million in the Q1 2025, representing a margin of 23.2%, compared to $156 million, or a margin of 20.1%, in the corresponding period last year. The insurance settlement recorded in the Q1 2025 increased EBITDA by $38 million and EBITDA margin by 5%.
Net income for the Q1 2025 was $93 million, or $1.67 per share, versus net income of $77 million, or $1.36 per share, in the corresponding period of 2024.
“We delivered a strong EBITDA margin in the Q1, reflecting the resilience and strength of our business through softer volumes,” said Eric Vachon, President and CEO of Stella-Jones. “Though macroeconomic headwinds continue to impact volume growth, at this stage we remain confident in our ability to achieve our financial objectives. We are executing on sound financial and operational foundations, and we remain assured in the long-term growth outlook for our infrastructure businesses.”
Stella-Jones Inc. is a leading North American manufacturer of pressure-treated wood products
