Stella-Jones earnings date
Stella-Jones (97S) Q3 2026 Earnings Report
DE:97S Q3 2026 EPS Results
- Actual EPS
- EUR 0.59
- Consensus EPS
- EUR 1.00
- Beat/Miss
- Missed by -EUR 0.41
- One Year Ago EPS
- EUR 1.00
DE:97S Q3 2026 Revenue Results
- Actual Revenue
- EUR 617.77M
- Expected Revenue
- EUR 636.75M
- Beat/Miss
- Missed by -EUR 18.98M
- YoY Revenue Growth
- +2.19%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/04/2026
- Time
- Before Open
- Conference Call
- Wednesday, November 4, 2026
Stella-Jones's next earnings date is estimated for March 10, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was broadly positive. Management highlighted resilient infrastructure demand, year-to-date sales growth, strong liquidity and cash generation, lower leverage, improving railway tie margins, growing steel order visibility and a substantial multi-year efficiency program. These positives were tempered by lower adjusted EBITDA and margins, a $10 million fuel-cost headwind, restructuring charges, lower Class 1 activity, residential lumber pricing lag and a gradual timeline for realizing optimization savings and restoring margins to the 17.5% to 18.5% target range.
Management expects the performance optimization program to deliver up to $100 million in cumulative cost savings and incremental profitability over the next 3 years, with the railway ties and wood utility pole initiatives alone expected to generate $20 million to $27 million in annualized savings and incremental profitability; based on an annual run rate of approximately $30 million, this represents an improvement in EBITDA margin of almost 1%, with savings described as $30, $30, $30 and a total of 100 after 3 years, not 100 in the last year, and example annual savings of $25 million, $27 million next year, $30 million, $32 million the year after and $35 million in the third year, with the run rate expected in the back half of next year and the savings being pretax. Wood utility pole volume growth is expected to remain mid-single-digit, with the 5% target still good for next year, railway tie organic growth next year could be slightly higher than that low single digit, and the company expects to return to its targeted EBITDA margin range of 17.5% to 18.5% over its 3-year outlook period, with 2027 expected to be over the 17% mark and progression probably a bit more towards 2028. Candiac is targeting its full run rate and double its capacity by the end of Q1 2027, with 90%, 95% of capacity expected in 2027, while Fayetteville remains scheduled for commissioning in late 2027 and a phased ramp-up to full production by the end of 2028, adding approximately 20,000 tons.
- Resilient Demand Across Core Infrastructure MarketsManagement said demand across end markets remained resilient, with wood utility pole volumes continuing to grow and the company maintaining its mid-single-digit volume outlook. Wood utility poles were described as essential to maintenance, reliability and storm-hardening programs despite higher interest rates, fuel costs and inflation.
- Third-Quarter and Year-to-Date Sales GrowthThird-quarter sales were $979 million, up $21 million from the prior-year period. Year-to-date sales were $2.812 billion versus $2.765 billion, a $47 million increase, primarily driven by the 2025 acquisition and continued strength in wood utility poles, where volumes were up 5% year-to-date.
- Utility Products Growth Supported by Poles and CrossarmsUtility Products sales reached $513 million in the third quarter, up 7% year over year. The increase included a $33 million contribution from the Crossarm acquisition and 3% year-over-year volume growth in wood utility poles. Management also said the Crossarm acquisition was contributing margins comparable to the Utility Products division.
- Performance Optimization Program Targets Significant SavingsThe company launched a coordinated performance optimization program combining railway tie and wood utility pole network initiatives with continuous improvement, real-time production tracking, standardized processes, operational reviews, automation and artificial intelligence. The railway tie and wood utility pole initiatives alone are expected to generate $20 million to $27 million in annualized savings and incremental profitability, while the broader program is expected to deliver up to $100 million in cumulative cost savings and incremental profitability over the next 3 years. Based on an annual run rate of approximately $30 million, management said this represents an improvement in EBITDA margin of almost 1%.
- Utility Pole Network Optimization Advanced Into ExecutionThe company moved from planning into execution on its utility pole network optimization, including consolidating wood utility pole production into single-product facilities and shifting production to higher-efficiency facilities. Management said these actions are designed to increase productivity, capture annual efficiencies and support margin expansion as volume grows.
- Progress on Class 1 Contract Renewals and Higher-Value ProductsStella-Jones secured additional multiyear commitments and continued advancing renewals with other key Class 1 customers. Management said the renewal cycle is supporting the core crosstie business while creating opportunities in bridge structures, switch timbers, pre-plated ties and treated services. The company also said investments in automation and broader product capabilities support serving a greater share of customer needs.
- Steel Structures Order Book Provides VisibilityThe Steel Structures order book continued to build, with additional customer orders heavily committing the production schedule into 2027 and 2028. A previously secured long-term contract alone accounts for approximately one-third of Candiac's capacity over the next decade, while the company said customer demand for lattice transmission towers remains strong.
- Candiac Expansion Nears CompletionThe Candiac capacity expansion is nearly complete, with only one machine expected to be received in December. The facility is targeting a doubled run rate of 20,000 tons by late Q1 2027; management said throughput should be at a much higher cadence in November and December and reach full cadence by the end of Q1.
- Fayetteville Project Remains on ScheduleThe Fayetteville, Tennessee greenfield project advanced from design and engineering to preparation of the existing on-site structure, while recruitment for plant management was underway. The project remains scheduled for commissioning in late 2027 with phased ramp-up to full production by the end of 2028. Once completed, it is expected to add approximately 20,000 tons of high-capacity lattice production.
- Railway Tie Margins Improved Despite Lower SalesThird-quarter railway tie sales were $208 million versus $211 million in the prior-year period, but margin dollars were essentially flat year over year and up year to date, resulting in an expansion of margin percentage. Management attributed the profitability improvement to a better business and product mix and ongoing operational efficiency.
- Railway Tie Growth Opportunities Into 2027Lower Class 1 volumes were offset by continued strength and healthy project activity in the commercial market, supported by U.S. government funding. Management said one customer volume recovery is looking very positive for 2027, and that increased volumes in bridge structures, crossings and pre-plated products could result in railway product-category organic growth slightly higher than low single digits next year.
- Strong Cash Generation and Lower LeverageThe company generated $158 million of cash from operations in the quarter. Net debt was reduced by almost $200 million during the first 9 months of the year, bringing leverage down to 2.4x despite lower profitability. Available liquidity ended the quarter at $836 million.
- Capital Allocation Flexibility MaintainedStella-Jones renewed its NCIB program, preserving flexibility to repurchase shares while continuing to assess buybacks alongside leverage, M&A and long-term growth investments. Management said disciplined M&A remains an important part of the long-term growth strategy and that reducing leverage is expected to create additional capacity for attractive acquisitions.
- Long-Term Margin Recovery FrameworkManagement expects the performance optimization program, pricing pass-throughs, higher-value products and scaling of the steel business to support a return to the targeted adjusted EBITDA margin range of 17.5% to 18.5% over the 3-year outlook period. Management said 2027 should progress to above 17%, with the target range likely more toward 2028.
DE:97S Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 10, 2027 | 2026 (Q4) | 0.56- | 0.57 | ― | ― |
| Nov 04, 2026 | 2026 (Q3) | 1.000.59 | 1 | -41.51% (-0.42) | |
| Aug 06, 2026 | 2026 (Q2) | 1.110.71 | 1.21 | -41.36% (-0.50) | |
| May 06, 2026 | 2026 (Q1) | 0.740.69 | 1.05 | -34.13% (-0.36) | |
| Feb 26, 2026 | 2025 (Q4) | 0.640.57 | 0.59 | -2.15% (-0.01) | |
| Nov 05, 2025 | 2025 (Q3) | 0.981.00 | 0.9 | 11.97% (+0.11) | |
| Aug 07, 2025 | 2025 (Q2) | 1.121.21 | 1.22 | -1.55% (-0.02) | |
| May 07, 2025 | 2025 (Q1) | 0.721.05 | 0.86 | 22.79% (+0.20) | |
| Feb 27, 2025 | 2024 (Q4) | 0.430.59 | 0.62 | -5.10% (-0.03) | |
| Nov 06, 2024 | 2024 (Q3) | 1.080.90 | 1.21 | -25.65% (-0.31) |
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.
