Stella-jones Inc. · TSX:SJ
Stella-jones — Investor Presentation (August 2026)
22 slides from Stella-jones's investor presentation, August 2026
Slide 1: Investor Presentation
Investor Presentation August 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 $3,518 Sales (TTM) (1) 3.33% 65% to 75% 3-yr CAGR(2) Contractual or Committed Sales Sales 6.0% 16.9% 3-yr CAGR Adjusted EBITDA margin(3) Adjusted EBITDA(3) (TTM) Utility Products Railway
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 crossings and con
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 • Leading North American supplier of products for electrical distribution and transmission markets ◦ Wood utility poles ◦ Distribution crossarms and transmission framing components ◦ Steel lattice towers and steel transmission poles ◦ U
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 annually Investing in growth capex Target: 20%-30% of Based on M&A activity prior year basic adjusted
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- Adjusted 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 hist
Slide 10: ROCE is Key to Driving Shareholder Value
ROCE is Key to Driving Shareholder Value Adjusted Return on Average Capital Employed Profitable Growth has Driven Adjusted ROCE Performance (Adjusted ROCE)(1) Attributes • Directly tied to value creation strategy • Key measure of efficiency of Stella-Jones' invested capital 15.8% • Utilized to evalu
Slide 11: Strong Profitable Growth
Delivering +8.4% Strong CAGR Sales & Adjusted EBITDA Margin (1) $3,492 20.0% Profitable 12.0% $1,559 Growth 4.0% 2015 2020 2025 Sales (C$ millions) Adjusted EBITDA Margin +10.5% Adjusted Earnings Per Share - Basic (1) CAGR Driven by: $ 5.56 • Strength in higher margin utility products • Scale and ef
Slide 12: Meaningful Cash Flow Generation
Meaningful Cash Flow Generation Financial Flexibility to Capitalize Cash Flows from Free Cash Flow (1) Operating Activities on Growth Opportunities >$600M 50% (C$Millions) 557 408 since 2023 Target Adjusted EBITDA/ Free Cash Flow Conversion 107 Rate(1) 2023 2024 2025 (1) This is a non-GAAP financial
Slide 13: Three-Year Targets - 2026-2028
Three-Year Targets - 2026-2028 Sales Adjusted EBITDA MARGIN(1) Adjusted EPS(1) - 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 T
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 This section includes information required by National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure in respect of “specified financial measures” (as defined therein). The below-described non-GAAP financial measures and non-GAAP ratios, as
Slide 17: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Adjusted operating income, adjusted operating income margin, adjusted EBITDA and adjusted EBITDA margin • Adjusted operating income: Operating income excluding gain on insurance settlement, business interruption insurance recovery, impairment of assets, restruct
Slide 18: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Adjusted net income and adjusted EPS - basic • Adjusted net income: Net income excluding the following items, net of tax: gain on insurance settlement, business interruption insurance recovery, impairment of assets, restructuring costs including closure and othe
Slide 19: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Capital employed and adjusted return on average capital employed (“adjusted ROCE”) • Capital employed: Total assets, excluding cash and cash equivalents, less current non-interest bearing liabilities • Average capital employed: 12-month average of the capital em
Slide 20: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Net debt and net debt-to-adjusted EBITDA • Net debt: Sum of long-term debt and lease liabilities (including, in each case, the current portion) less cash and cash equivalents • Net debt-to-adjusted EBITDA: Net debt divided by TTM adjusted EBITDA The Company beli
Slide 21: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Maintenance and Growth Capital Expenditures and Free Cash Flow (“FCF”) • Maintenance and Growth Capital Expenditures: The sum of maintenance capital expenditures and growth capital expenditures represents total purchases of property, plant and equipment. • Free
Slide 22: Contact
Contact David Galison, BScME, MBA Vice President, Investor Relations dgalison@stella-jones.com 647 618-2709 stella-jones.com Proprietary and Confidential