Stella-jones Inc. · TSX:SJ
Stella-jones — Investor Presentation (February 2026)
19 slides from Stella-jones's investor presentation, February 2026
Slide 1: Investor Presentation February 2026
Investor Presentation February 2026
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains forward-looking information within the meaning of applicable securities laws (“forward-looking statements”). The words “may”, “could”, “should”, “would”, “assumptions”, “plan”, “strategy”, “believe”, “anticipate”, “estimate”, “expect”, “intend”, “objec
Slide 3: Stella-Jones at a Glance
Strategic Location & Scale Stella-Jones 46 >3,200 76% Manufacturing Employees Sales in US Facilities at a Glance $3.5B Sales (TTM) (1) 4.4% $506M 3-yr Avg. 3-yr Capital Returned Sales CAGR(2) to Shareholders 12.2%(3) 18.1%(3) 3-yr Avg. EBITDA(4) EBITDA margin(4) CAGR(2) (TTM)(1) Utility Products Rai
Slide 4: Focused on Large, Attractive End Markets
Focused on Large, Attractive End Markets Utility Railway Industrial Residential Logs & Products Ties Products Lumber Lumber • Treated wood utility poles and • Treated wood railway ties, • Timbers for railway bridges, • Premium treated residential • Reselling logs harvested crossarms timbers crossing
Slide 5: Rooted in Infrastructure
Rooted in Infrastructure High-value, strategically-located, strong cash generating asset base Growth in Infrastructure Sales 2025 Utility Products 2022 • Replacing aging infrastructure, meet growing demand and increasing utility grid resiliency ~81% ~69% Infrastructure Railway Ties Infrastructure Sa
Slide 6: Supplier of Choice to Infrastructure Customers
Supplier of Choice to Infrastructure Customers Utility Products • Suite of products for electrical distribution and transmission markets ◦ Wood utility poles ◦ Distribution crossarms and transmission framing components ◦ Steel lattice towers and steel transmission poles ◦ Utility product accessories
Slide 7: Our Disciplined Capital Allocation Priorities
Our Disciplined Capital Allocation Priorities Maintenance Capex Free Cash Flow(1) Invest to maintain Strategic Growth Consistent Share the network Opportunities Dividend Repurchases • ~2.5% of sales Investing in growth capex Target: 20%-30% of Based on M&A activity • $85-$95M of per year prior year
Slide 8: Strategic Approach to M&A
Strategic Approach to M&A Our Proven and Consistent Set of Criteria: Recent Accretive • Build on existing portfolio • Leverage deep customer relationships Investments Strategic Value • Leverage extensive distribution network Acquired: November 2025 Price: ~US$140 million • Favourable tailwinds • Sig
Slide 9: M&A Supported by Strong Balance Sheet
M&A Supported by Strong Balance Sheet Net Debt-to-EBITDA (1) Trend 3.00x Leverage Framework • Willing to temporarily exceed for 2.50x M&A or short term working capital investments 2.00x • Acquisition must meet Stella-Jones' strict acquisition criteria Target Range 1.50x • Demonstrated history of eff
Slide 10: ROCE is Key to Driving Shareholder Value
ROCE is Key to Driving Shareholder Value Return on Average Capital Employed (ROCE)(1) Profitable Growth has Driven ROCE Performance Attributes • Directly tied to value creation strategy • Key measure of efficiency of Stella-Jones' invested capital 15.8% • Utilized to evaluate Senior Management perfo
Slide 11: Strong Profitable Growth
Delivering +8.4% Strong CAGR Sales & EBITDA Margin (1) $3,492 20.0% Profitable 15.0% $1,559 Growth 10.0% 2015 2020 2025 Sales (C$ millions) EBITDA Margin +10.8% Earnings Per Share - Basic CAGR Driven by: $5.71 (2) • Strength in higher margin utility products • Scale and efficiencies $2.05 • Share re
Slide 12: Meaningful Cash Flow Generation >$600M
Meaningful Cash Flow Generation Financial Flexibility to Capitalize Cash Flows from Free Cash Flow (1) Operating Activities on Growth Opportunities >$600M (C$Millions) 50% 557 408 since 2023 Target EBITDA/Free Cash 107 Flow Conversion Rate(1) 2023 2024 2025 (1) This is a non-GAAP financial measure o
Slide 13: Three-Year Targets - 2026-2028
Three-Year Targets - 2026-2028 Sales EBITDA MARGIN(1) EPS - basic 4-5% Wood Utility Poles ~50% of sales, mid-single digit growth 17.5-18.5% ↑10%+ CAGR 2025-2028 Locweld & Brooks ~$225M of annual revenue CAGR 2025-2028 Driven in part by operational Supported by multiple Railway Ties efficiency initia
Slide 14: Stand Tall, Reach Wide.
Stand Tall, Reach Wide. 1 2 3 4 Infrastructure Focused Strategically Located Strong Cash Generation Positioned for Continued Strong Performance Leveraging scale, customer Extensive and strategically Strong cash generation and Long runway to grow relationships and network to located operations suppor
Slide 15: Appendix
Appendix Proprietary and Confidential 15
Slide 16: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures The below-described non-GAAP financial measures, non-GAAP ratios and other financial measures used throughout this presentation have no standardized meaning under GAAP and are not likely to be comparable to similar measures presented by other issuers. The Compan
Slide 17: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures The following tables present the reconciliations of non-GAAP financial measures to their most comparable GAAP measures. Reconciliation of Operating Income to EBITDA (in millions of dollars) 2025 2024 2023 2022 2021 Operating income 516 503 499 359 326 Depreciati
Slide 18: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Reconciliation of Long-Term Debt to Net Debt (in millions of dollars) 2025 2024 2023 2022 2021 Long-term debt, including current portion 1,339 1,380 1,316 941 734 Add: Lease liabilities, including current portion 303 323 294 167 144 Less: Cash and cash equivalen
Slide 19: Contact
Contact David Galison, BScME, MBA Vice President, Investor Relations dgalison@stella-jones.com 647 618-2709 stella-jones.com Proprietary and Confidential