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Stella-Jones Announces Second Quarter Results
ScienjoyScienjoy(US:SJ) Globenewswireยท2025-08-07 11:00

Financial Performance - Sales for Q2 2025 were $1,034 million, a decrease of $15 million from $1,049 million in Q2 2024 [3][4] - Gross profit was $206 million, down from $226 million, resulting in a gross profit margin of 19.9% compared to 21.5% in the prior year [3][7] - Operating income decreased to $155 million from $168 million, with an operating income margin of 15.0% [3][8] - EBITDA for the quarter was $189 million, representing an EBITDA margin of 18.3%, down from 19.1% in Q2 2024 [3][8] - Net income for Q2 2025 was $106 million, or $1.91 per share, compared to $110 million, or $1.94 per share, in Q2 2024 [3][9] Acquisition and Strategic Developments - The company completed the acquisition of Locweld, a steel transmission structure manufacturer, for a total consideration of $58 million [5][15] - This acquisition is expected to enhance the company's infrastructure offerings and position it to capitalize on new investment opportunities [2][5] Market Outlook and Guidance - The company has revised its revenue outlook for 2025 to approximately $3.5 billion, down from the previous estimate of $3.6 billion, due to ongoing macroeconomic challenges [16] - The revised guidance reflects lower-than-expected organic sales growth in utility poles and a modest decline in railway ties sales [16][17] Liquidity and Capital Resources - As of June 30, 2025, the company had available liquidity of $693 million and a net debt-to-EBITDA ratio of 2.4x [14][17] - The company returned $54 million to shareholders through dividends and share repurchases during the quarter [14] Segment Performance - Utility poles sales increased to $476 million, while railway ties sales decreased to $240 million, reflecting a shift in treatment practices by a major customer [13] - Residential lumber sales remained stable at $246 million, with higher market prices offsetting softer demand [13]