- Sales increased 18% to $903 million
- EBITDA rose 50% to a new record of $180 million, or a margin of 20%
- Net income reached $115 million, or $1.76 per share
- Solid financial position with a net debt-to-EBITDA ratio of 1.7x
- Annual 2021 EBITDA forecast revised to $410 to $440 million
MONTREAL, Aug. 03, 2021 — Stella-Jones Inc. (TSX: SJ) (“Stella-Jones” or the “Company”) today announced financial results for its second quarter ended June 30, 2021.
“We are very pleased with our second quarter performance, which included strong sales growth in each of our product categories. Volume gains in utility poles and railway ties, combined with unprecedented high market prices of lumber, drove sales to over $900 million and EBITDA to a record quarter,” stated Éric Vachon, President and CEO of Stella-Jones.
“These results allowed us to generate operating cash flows of $173 million, reduce the indebtedness related to the seasonal investment in working capital in the first quarter and return $38 million to shareholders during the quarter. While we have revised the full-year EBITDA forecast to reflect the normalization of lumber market conditions, we foresee solid EBITDA growth in 2021 and are confident that our leading utility poles and railway ties core product categories will continue to deliver sustained growth. With our financial strength, scale and focus on execution and innovation, we are uniquely positioned to capitalize on growth opportunities and generate solid returns for our shareholders,” concluded Mr. Vachon.
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