Stella-Jones announces updated 2023-2025 financial objectives

The Company has updated its 2023-2025 financial objectives to reflect lower than expected organic sales growth and a higher EBITDA margin, compared with the financial objectives set in May 2023. The projections do not include the impact of potential future acquisitions and assume that foreign currency exchange rates remain generally consistent with current levels. Sales are now expected to be approximately $3.6 billion by 2025, compared to organic sales greater than $3.6 billion, previously set out in the three-year financial objectives. This update was driven by the lower-than-anticipated organic sales growth for utility poles, largely influenced by customers’ current purchasing behaviour. EBITDA margin is expected to exceed 17% and compares with the prior projection of 16%. This reflects an 11% EBITDA compound annual growth rate for the 2023 to 2025 period, compared to the prior growth expectation of 9%.