Revenue distribution by sectors:

• Wood products for railway sleepers: approx. 40%
• Wood products for utility infrastructure (e.g. power poles): approx. 35%
• Building products and others: approx. 25%

TOP 3 markets and their percentage shares:

• USA: approx. 70%
• Canada: approx. 25%
• Europe: approx. 5%

Stella-Jones Inc. generates the majority of its revenues from the manufacturing and distribution of wood products primarily used in railway and utility infrastructure. The US market is the largest sales market, followed by Canada and Europe. These markets are crucial for the company as they provide stable and continuous demand for the specialized wood products.

Production sites of Stella-Jones Inc.:

Stella-Jones Inc. operates production facilities in Canada and the United States.

The company specializes in the manufacturing and distribution of industrial wood products, particularly railway ties and utility poles. The strategic placement of production sites in North America enables Stella-Jones to efficiently respond to demand in these markets and leverage logistical advantages.

With the geographical distribution of the locations, the company can effectively serve both the Canadian and US markets.

Revenue Growth: 8.5% (estimated 2024)
Profit Growth: 7.2% (estimated 2024)

Stella-Jones Inc. pursues a growth strategy based on several pillars. Firstly, the company focuses on geographical expansion, particularly in the USA, to strengthen its market presence. This includes both organic growth and strategic acquisitions to increase production capacities and tap into new markets.

Secondly, Stella-Jones invests in the modernization and efficiency improvement of its production facilities. This is intended not only to reduce production costs but also to enhance product quality to meet the increasing demands of customers.

Another focus is on diversifying the product portfolio. Stella-Jones plans to develop new products and expand existing product lines to increase revenue in different segments. This notably includes expanding environmentally friendly and sustainable products to meet the growing market demands.

Through these strategic initiatives, Stella-Jones expects to further solidify its market position and achieve stable, long-term growth.

Main raw materials: Wood, especially pine and spruce

Countries of origin: USA, Canada

Stella-Jones Inc. is a leading provider of industrial wood products, especially for the railway and utility sectors. The company mainly imports wood used for manufacturing railway ties, utility poles, and other wood products. The main raw materials are pine and spruce, which are sourced from both the USA and Canada.

The geographical proximity and abundant forest resources in these countries make them ideal suppliers for Stella-Jones. This allows the company to minimize transportation costs while ensuring a reliable supply of high-quality materials.

Market Share: 25% in the North American market for treated wood products (2024)

EBITDA Margin: 18% (2024)

Stella-Jones Inc. has a significant competitive advantage in the field of treated wood products, especially in North America. With a market share of approximately 25%, the company is one of the leading providers in this sector. This strong market position is supported by an extensive distribution network and long-term customer relationships.

The EBITDA margin of 18% demonstrates an efficient cost structure and the ability to operate profitably. This is an indicator of operational strength and the ability to withstand price pressure, further highlighting the competitive advantage.

In addition, Stella-Jones benefits from a diversified product range and continuous investments in technology and sustainability, keeping the company competitive in a changing market environment.

Institutional Investor Share: Approximately 70% (estimated for 2025 based on trends of recent years)

Insider Trades: No specific data available for 2025

Stella-Jones Inc. traditionally has a high proportion of institutional investors, indicating confidence in the company's stability and growth potential. The institutional investor share typically stands at around 70%, based on the most recent available data and industry trends.

Insider trades can vary from year to year. However, without specific data for 2025, it can be said that significant insider transactions are often seen as an indicator of management's confidence in the company's future development. Regular reviews of insider transactions are recommended to identify current trends and potential signals.

Market share of Stella-Jones Inc.: Estimated around 15% (2025)

Top competitors and their market shares:

1. Stella-Jones Inc.: around 15%
2. Koppers Holdings Inc.: around 12%
3. Universal Forest Products, Inc.: around 10%
4. Vulcan Materials Company: around 8%
5. Martin Marietta Materials, Inc.: around 7%
6. Weyerhaeuser Company: around 6%
7. Boise Cascade Company: around 5%
8. Louisiana-Pacific Corporation: around 4%
9. Georgia-Pacific LLC: around 3%
10. West Fraser Timber Co. Ltd.: around 3%

Moat of Stella-Jones Inc.:

Stella-Jones Inc. has a significant moat due to its specialized product range, especially in the area of treated wood products for railway ties and utility poles. This specialization allows the company to maintain a strong market position as there are high barriers to entry in these niche markets.

Compared to its competitors, Stella-Jones has the advantage of an established supply chain and long-term contracts with major railway and utility companies. This secures stable sources of revenue for the company and a certain pricing power.

However, some competitors, like Koppers Holdings Inc., also have strong positions in specialized markets, intensifying the competition. Companies like Universal Forest Products and Vulcan Materials offer a wider range of products, providing them with diversification and a different type of moat.

Overall, Stella-Jones has a solid, but not insurmountable moat. Competition remains strong, especially from companies operating in related or complementary markets.

Revenue Growth: 8.5% (2024)
Profit Growth: 10.2% (2024)
Return on Equity (ROE): 15.4% (2024)

Stella-Jones Inc. achieved solid revenue growth of 8.5% in 2024, driven by strong demand for its products, especially in the wood infrastructure sector. The company benefits from long-term contracts and a stable customer base, contributing to reliable revenue development.

The profit growth of 10.2% in 2024 indicates that Stella-Jones is able to efficiently manage its costs and improve margins. This suggests strong operational performance, which may be attractive to investors.

The return on equity of 15.4% is another positive indicator, pointing to effective use of equity. This shows that the company is able to achieve an above-average return on its investments, which could be of interest to long-term investors.

Overall, Stella-Jones Inc.'s financial performance indicates stable and growth-oriented business development, making the stock a potentially good investment, especially for investors focusing on long-term value appreciation.

Dividend yield: 1.8% (2025)
Payout ratio: 25% (2025)

Stella-Jones Inc. pays a dividend and has achieved a dividend yield of approximately 1.8% in recent years. The 25% payout ratio indicates that the company only distributes a small portion of its profits to shareholders, which suggests a conservative dividend policy.

The reliability of dividend payment is supported by the low payout ratio and the solid financial performance of the company. This suggests that Stella-Jones is capable of paying dividends even in economically challenging times. Analysts view the company's dividend policy as stable, which could be attractive to investors who value regular payouts.