- Sales of $651 million, up 4%
- Strong organic sales growth in infrastructure-related businesses
- EBITDA(1) of $88 million, or a margin(1) of 13.5%
- Net income reached $46 million, or $0.73 per share
Montreal, Quebec – May 11, 2022 - Stella-Jones Inc. (TSX: SJ) (“Stella-Jones” or the “Company”) today announced financial results for its first quarter ended March 31, 2022.
“With 2022 underway, we are pleased to report first quarter results that delivered on our expectations,” stated Éric Vachon, President and CEO of Stella-Jones.“ Sales increased quarter-over-quarter primarily due to strong organic growth in our infrastructure-related businesses and contributions from the recent Cahaba acquisitions. This growth was largely offset by lower residential lumber sales which, coupled with increasing input costs, pressured our margins. While contractual price adjustments are being implemented to cover escalating costs across the industry supply chain, we anticipate a certain degree of lag until the cost environment stabilizes."
“In terms of market dynamics, customer demand for utility poles remains robust, based on planned infrastructure investments as well as ongoing replacement programs by utility and telecommunication companies. The trend for railway ties is also positive for 2022, although we are experiencing longer than expected tightness in the market supply for untreated ties. Residential lumber sales in the first quarter were higher than expected, but the peak summer season will be more telling as to the overall performance of this business for the year. In short, we are laying the foundation to achieve our three-year strategic plan and our performance for the first quarter provides a good start,” concluded Mr. Vachon
Source: Stella-Jones
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