EarningsQ2 2026 Earnings Report
DE:97S Q2 2026 EPS Results
Actual EPS€0.72
Consensus EPS€1.12
Beat/MissMissed by -€0.41
One Year Ago EPS€1.22
DE:97S Q2 2026 Revenue Results
Actual Revenue€665.42M
Expected Revenue€685.52M
Beat/MissMissed by -€20.11M
YoY Revenue Growth+0.77%
Earnings Announcement Details
QuarterQ2 2026
Date08/06/2026
TimeBefore Open
Conference CallThursday, August 6, 2026
DE:97S Upcoming Earnings
Stella-Jones's next earnings date is estimated for November 4, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DE:97S Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Neutral
The call presented a balanced view: top-line resilience, strong cash generation, strategic capacity expansions (steel structures) and successful integration of the crossarm acquisition are clear positives. However, Q2 profitability was meaningfully affected by one-time tie charges, site-specific environmental and maintenance costs, temporary steel-structure inefficiencies and fuel-price pressure that reduced adjusted EBITDA and compressed margins. Management expects these headwinds to ease, believes margins (excluding nonrecurring items) would have been near 17.5%, and maintains its medium-term margin target, resulting in a cautiously optimistic outlook but with noted near-term execution and cost-recovery risks.Company Guidance
Modest Revenue Growth
Second quarter sales of $1.042 billion, up $8 million year-over-year; year-to-date sales $1.833 billion, up $26 million versus prior year.
Utility Products Strength & Crossarm Acquisition
Utility product sales of $510 million in Q2, up 7% from $476 million; $29 million contribution from the crossarm acquisition which performed in line with expectations and began recording Canadian sales in the quarter.
Wood Utility Poles: Volume Momentum
Wood utility pole organic sales increased ~1% in Q2 with volumes up 2% (contract business), year-to-date organic sales up ~4%; management still targeting mid-single-digit full-year growth for poles despite weather-related delays.
Steel Structures Capacity Expansion & Customer Contracts
Candiac modernization on track to double capacity to 20,000 tons by Q3 2026 with full ramp-up by year-end; demand for lattice towers strong and capacity substantially allocated through end-2027; secured one customer contract for ~1/3 of Candiac capacity for 10 years. Fayetteville (TN) project on track (~USD 50M, +20,000 tons capacity) with commissioning expected late 2027.
Strong Cash Generation and Balance Sheet Liquidity
Generated $192 million of cash from operations in Q2 (though down from $224M prior year); reduced net debt by more than $100 million in first half of 2026 (excluding FX); available liquidity of $759 million and leverage ratio of 2.5x, providing flexibility for growth investments.
Railway Ties Commercial Resilience & Optimization
Q2 railway tie commercial business growth offset much of lower Class 1 volumes; executing network optimization to improve returns; one Class 1 contract renewal finalized with volume growth (additional negotiation progress on others); expected annual cost savings from tie optimization of $10–15 million starting in 2027.
Sustainability and Safety Progress
Published 2025 Sustainability Report: 23% reduction in Scope 1 & 2 GHG emissions vs 2022 baseline; year-over-year reduction in injury rate frequency; 96% of Canadian salaried employees completed indigenous cultural awareness training.
Adjusted Margin Potential Excluding One‑Time Items
Adjusted EBITDA was $167 million (16%) in Q2; management estimates that excluding non-recurring items margin would have been closer to 17.5%, and they remain confident in their 3-year adjusted EBITDA margin target of 17.5%–18.5%.
DE:97S Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed