Core Insights - Jewett-Cameron Trading Company Ltd. reported operational and financial results for Q1 2026, highlighting ongoing challenges due to tariffs and weak consumer sentiment, but also noted progress in strategic initiatives aimed at growth and profitability [2][4]. Financial Performance - Revenue for Q1 2026 was $8.7 million, a decrease of 7% from $9.3 million in Q1 2025 [4]. - The core metal fence business showed slight year-over-year growth, while the Greenwood industrial wood business experienced a significant increase of 45% [4]. - Gross profit margins were reported at (12.5)% for Q1 2026, down from 18.3% in Q1 2025, primarily due to $2.2 million in inventory write-downs related to pet and lumber products [5][7]. Operating Expenses - Operating expenses for Q1 2026 were $2.7 million, slightly up from $2.6 million in Q1 2025, with a notable decrease in wages and employee benefits from $1.7 million to $1.2 million [6]. - Selling, General and Administrative (SG&A) expenses rose to $1.4 million from $809,000, attributed to higher professional fees and increased warehousing costs [6]. Net Loss - The net loss for Q1 2026 was $(3.9) million or $(1.12) per share, compared to a net loss of $(659,000) or $(0.19) per share in Q1 2025 [7]. Strategic Initiatives - The company is focusing on monetizing non-core assets, including selling excess inventory and exploring strategic partnerships to strengthen its financial position [3][13]. - A revised lending agreement was established, increasing borrowing capacity to $8 million, which provides additional flexibility for operational realignment [8]. Future Outlook - The company aims to exit fiscal 2026 with a sustainable business model, leveraging non-core assets to fund core growth strategies and enhance shareholder value [3][13].
Jewett-Cameron Reports Fiscal 2026 First Quarter Operational and Financial Results