Core Insights - Jewett-Cameron Trading Company Ltd. reported a significant decline in revenue and net loss for Q3 2025, primarily due to the impact of tariffs on imported metal products and supply chain disruptions [1][9][12]. Operational Highlights - The company experienced a 21% decrease in total revenue for Q3 2025, amounting to $12.6 million compared to $15.9 million in Q3 2024, largely due to deferred purchases by retailers amid tariff uncertainties [6][9]. - Sales of Lifetime Steel Posts® products grew by 85% compared to Q3 2024, driven by the rollout of displayers, which increased by approximately 88% since November 2024 [6][9]. Tariff Impact and Response - The company faced increased tariffs on Chinese goods, with a 25% tariff implemented in 2019 and further increases announced in 2025, leading to a 50% global tariff on steel and aluminum imports as of June 2025 [3][4]. - Retailers have deferred purchases of imported metal products due to tariff volatility, causing significant turmoil in the company's markets and stressing logistics [4][5]. - The company is diversifying suppliers to mitigate tariff impacts and is implementing price increases across its product portfolio to align with rising costs [7][8]. Financial Results - Gross profit margins decreased to 15.0% in Q3 2025 from 18.6% in Q3 2024, attributed to higher tariff and shipping costs, as well as a shift towards lower-margin products [10]. - Operating expenses decreased to $2.6 million in Q3 2025 from $2.9 million in Q3 2024, due to operational efficiency initiatives and a 20% workforce reduction [11]. - The net loss for Q3 2025 was $(0.6) million, or $(0.18) per share, compared to a net income of $0.2 million, or $0.04 per share, in Q3 2024 [12][20]. Strategic Initiatives - The company is developing multi-source, multi-country strategic sourcing partnerships to reduce dependence on high-tariff countries and enhance production flexibility [7]. - Initiatives to improve operational efficiency and customer satisfaction are being enacted, including process improvements and technology enhancements [7][8].