Stella-Jones Announces Fourth Quarter and Year-End Results

Core Insights - Stella-Jones Inc. reported continued sales and EBITDA growth for the fourth quarter and the year ended December 31, 2024, demonstrating the strength of its business model and customer-centric approach [2][3] - The company achieved a quarterly dividend increase for the 21st consecutive year, reflecting confidence in long-term business fundamentals [3][21] - The outlook for 2025 remains positive, driven by the need to strengthen North America's aging electrical grid and opportunities in railway ties [3] Financial Highlights - Fourth quarter sales reached CAD 730 million, a 6% increase from CAD 688 million in Q4 2023 [4] - Annual sales for 2024 totaled CAD 3,469 million, up 5% from CAD 3,319 million in 2023 [9] - Operating income for 2024 was CAD 503 million, with an EBITDA of CAD 633 million, representing an EBITDA margin of 18.2% [14][15] - Net income for Q4 2024 was CAD 52 million, or CAD 0.93 per share, compared to CAD 56 million, or CAD 0.98 per share in Q4 2023 [8][15] Segment Performance - Utility poles sales accounted for 53% of Q4 2024 sales, totaling CAD 385 million, a slight increase from CAD 383 million in Q4 2023 [11] - Railway ties sales increased by 15% in Q4 2024, reaching CAD 193 million, driven by higher Class 1 volumes [11] - Residential lumber sales grew by 12% in Q4 2024, totaling CAD 93 million, reflecting favorable pricing and higher sales volumes [11] Capital Allocation and Shareholder Returns - The company generated strong operating cash flow of CAD 408 million in 2024 and returned CAD 153 million to shareholders [16] - The quarterly dividend was increased by 11% to CAD 0.31 per share, payable on April 18, 2025 [21] - Stella-Jones has committed to returning over CAD 500 million to shareholders from 2023 to 2025 [19] Financial Position - As of December 31, 2024, Stella-Jones maintained a net debt-to-EBITDA ratio of 2.6x, slightly above the target range [17] - The company had available liquidity of CAD 802 million, indicating a strong financial position [17] - Total assets increased to CAD 4,103 million in 2024, up from CAD 3,708 million in 2023 [27]