Overview

• U.S. fencing and outdoor products maker's fiscal Q3 revenue fell 22% yr/yr on discontinued cedar contract

• Gross profit margin rose to 18% from 15% as metal fencing mix improved, but remains below norms

• Company posted wider net loss as pet segment stayed soft and tariffs pressured margins

Outlook

• Company expects margin pressure from tariffs and higher costs to persist

• Jewett-Cameron plans to focus on core metal fencing products and reduce annual operating expenses

• Company continues to evaluate strategic options, including potential divestitures and partnerships

Result Drivers

• CEDAR CONTRACT CANCELLATION - Revenue fell mainly due to discontinuation of low-margin cedar fencing supply agreement, reducing sales by over $3 mln yr/yr

• METAL FENCING GROWTH - Improved sales in metal fencing, led by core brands and supported by in-store display programs and product expansion

• TARIFFS AND COST PRESSURE - Margins remain pressured by tariffs, higher product and logistics costs, despite some stabilization from initial tariff-related price increases

Company press release: ID:nGNX9bpt2W

Key Details

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