Stella-jones Inc. · TSX:SJ
Stella-jones — Q3 2024 Earnings Presentation
13 slides from Stella-jones's earnings presentation, Nov 6, 2024
Slide 1: Q3 2024 Financial Results
Q3 2024 Financial Results November 6, 2024 Stella-JoneS a
Slide 2: Forward Looking Information & Non-GAAP Measures
FORWARD LOOKING INFORMATION & NON-GAAP MEASURES This presentation contains certain statements that are forward-looking, including comments with respect to the Company's objectives, strategies, targets and expectations. The reader is cautioned not to place undue reliance on these statements since a n
Slide 3: Sales, EBITDA Margins and Operating Cash Flows
SALES, EBITDA MARGINS AND OPERATING CASH FLOWS SALES Q3 2024 $949M $915M YTD 2024 $2,739M $2,631M Q3 2023 Q3 2024 YTD 2023 YTD 2024 EBITDA() Q3 2024 YTD 2024 $193M $162M $518M $488M Q3 2023 Q3 2024 YTD 2023 YTD 2024 OPERATING CASH FLOWS Q3 2024 YTD 2024 $186M $301M $130M $125M Q3 2023 Q3 2024 YTD 20
Slide 4: Updated 2023-2025 Financial Guidance
UPDATED 2023-2025 FINANCIAL GUIDANCE Gn milions of Canadian dollars, except percentages 2023-2025 Objectives May 2023 Updated November 2024) Sales > $3,600 organic Approx. $3,600 total EBITDA Margin® 16% > 17% Return to Shareholder: cumulative > $500 > $500 Net Debt-to-EBITDA® ©) 2.0x-2.5x 2.0x-2.5x
Slide 5: Established Track Record of Performance
ESTABLISHED TRACK RECORD OF PERFORMANCE SALES 2019-2023 Total Sales CAGR: 11% $3,319 $888 $925 +2077" 2019 2020 2021 2022 2023 Utility Poles Sales Total Sales $3,427 $1,703} LT ay EBITDA?) 2019-2023 EBITDA CAGR: 18.1% 18.9% 14.3% $448 $385 $400 $313 2019 2020 2021 2022 2023 L™” mmm EBITDA] =——EBITDA
Slide 6: Strong Long-Term Fundamentals for Utility Poles
STRONG LONG-TERM FUNDAMENTALS FOR UTILITY POLES
Slide 7: Market Overview
MARKET OVERVIEW Total transmission and distribution (“T&D”) Forecasted T&D spend expected to sustain historic growth speed of ~6-7% addressable market size 2017-2030, in billions of USD 155.8 145.9 6.7% 136.7 CAGR by segment 128.1 . 17-22 22-30 112.6 Substation ~ Opex and Maintenance 4% 5% Substatio
Slide 8: Product Category Overview
PRODUCT CATEGORY OVERVIEW UTILITY RAILWAY INDUSTRIAL RESIDENTIAL LOGS & POLES TIES PRODUCTS LUMBER LUMBER [ i an | a ue 49% of Sales 22% of Sales 4% of Sales 21% of Sales 4% of Sales * Sales of $448 million * Sales of $205 million * Sales of $41 million * Sales of $191 million * Sales of $30 million
Slide 9: Q3 & YTD 2024 Financial Highlights
Q3 & YTD 2024 FINANCIAL HIGHLIGHTS (in millions of Canadian dollars, except per share data and margins) Q3-24 Q3-23 YTD Q3-24 YTD Q3-23 Sales 915 949 2,739 2,631 Utility Poles: 448 438 1,320 1,188 Railway Ties: 205 230 697 663 Residential Lumber: 191 202 521 563 Other: 71 79 201 217 Operating income
Slide 10: Disciplined Capital Allocation Strategy
DISCIPLINED CAPITAL ALLOCATION STRATEGY $301M YTD Operating Cashflow $112M YTD Return of Capital to Shareholders 2.5x Net debt-to-EBITDA As at September 30, 2024 () Please refer to the section “Non-GAAP and other financial measures” in the Company's latest MD&A for an explanation of the non-GAAP and
Slide 11: Acquisitions: Cornerstone of Growth Strategy
ACQUISITIONS: CORNERSTONE OF GROWTH STRATEGY * Pursuit of acquisitions by leveraging infrastructure customer base, North American footprint and distribution network " Dedicated resources to identify opportunities that are a good fit for our business
Slide 12: Key Takeaways
KEY TAKEAWAYS Continued sales growth Strong EBITDA margin of over 17% & Acquisitions expected to be source of growth fe) Wa Investment-grade capital allocation strategy
Slide 13: Stella-Jones
Stella-JoneS - | eee @) Stella-Jones : CVOR 020-649-050 Stella-JoneS a