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Stella-Jones Inc. (OTC:STLJF) Financial Overview and Strategic Investments

  • Stella-Jones Inc. (OTC:STLJF) reported earnings per share of $0.66, missing the estimated $0.73, with revenue reaching $529.4 million against the anticipated $554.2 million.
  • The company achieved annual sales of $3.5 billion for the full year of 2025, with an operating income of $516 million and an EBITDA of $661 million, indicating a strong financial resilience.
  • STLJF is investing in a new U.S. greenfield steel lattice facility to capitalize on the infrastructure spending trend, aiming to strengthen its market position.

Stella-Jones Inc. (OTC:STLJF) is a leading producer and marketer of pressure-treated wood products, serving various sectors including utility, industrial, and residential markets. Despite its strong market presence, STLJF reported earnings per share of $0.66 on February 26, 2026, missing the estimated $0.73. Revenue also fell short, reaching $529.4 million against the anticipated $554.2 million.

For the full year of 2025, Stella-Jones achieved annual sales of $3.5 billion, aligning with their guidance. The company recorded an operating income of $516 million, which includes a $28 million gain from an insurance settlement. Their EBITDA reached $661 million, representing an 18.9% margin, with a 0.8% increase attributed to the insurance settlement. Despite the earnings miss, STLJF’s strong operating cash flow of $557 million highlights its financial resilience.

Stella-Jones is strategically investing in a new U.S. greenfield steel lattice facility to capitalize on the growing trend in infrastructure spending. Eric Vachon, President and CEO, emphasized the company’s robust volume momentum in utility products and an EBITDA margin that surpassed their target, even amid softer market conditions. This strategic move aims to strengthen STLJF’s position in the market.

STLJF’s financial metrics provide further insight into its valuation. The company has a price-to-earnings (P/E) ratio of approximately 14.48, indicating the price investors are willing to pay per dollar of earnings. The price-to-sales ratio stands at about 1.40, suggesting that investors are paying $1.40 for every dollar of sales. The enterprise value to sales ratio is around 1.82, reflecting the company’s total valuation compared to its sales.

The company’s financial health is also evident in its debt-to-equity ratio of approximately 0.74, indicating a balanced approach to financing its assets. With a current ratio of 7.25, STLJF demonstrates a strong ability to cover its short-term liabilities with its short-term assets. These metrics, combined with an earnings yield of about 6.91%, provide a comprehensive view of STLJF’s financial standing and potential for future growth.

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