Jewett-Cameron (JCTC) Q4 2025 Earnings Transcript

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Monday, Dec. 1, 2025 astatine 4:30 p.m. ET

• Chief Executive Officer — Chad Summers

• Chief Financial Officer — Mitch Van Domelen

• Investor Relations — Robert Blum

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Chad Summers: Thank you, Robert, and bully afternoon. I admit the accidental to talk with everyone present today. As I stated successful the property release, we began fiscal 2025 with a affirmative outlook and a absorption connected continuing to summation sales, amended margins, little costs, present innovative products and monetize surplus assets. Throughout the archetypal 2 quarters of the fiscal year, galore of management's cardinal objectives were achieved. Specifically, our metallic obstruction concern was connected a wide maturation trajectory, resulting successful archetypal fractional 2025 gross maturation compared to the archetypal fractional of 2024.

This momentum was driven by the continued occurrence of our Lifetime Steel Post and Adjust-A-Gate products, the enlargement of our innovative in-store show placements and the motorboat of caller offerings. Further, our caller proviso root partners were expanding accumulation to enactment our sales, lessening our dependence connected China and the higher tariff impacts. With caller Lifetime Steel Post displayers successful spot successful the close stores successful the close aisles, we were acceptable for seasonally beardown 2nd fractional of the twelvemonth erstwhile professionals and do-it-yourselfers are astir progressive leveraging our products to enrich outdoor spaces.

Unfortunately, the rapidly escalating and unpredictable across-the-board tariffs archetypal announced successful February of 2025 connected sourced goods created unprecedented marketplace turmoil, which resulted successful deferring retailer purchases, straining logistics and driving higher costs, each of which importantly impacted our 2nd fractional results. It was not conscionable our quality to recognize and cipher the analyzable and rapidly changing enforcement orders, but besides getting our customers to judge terms increases successful a timely manner. For the past fig of months, we person taken assertive steps to mitigate the impacts of the tariffs successful the abbreviated term.

Some of these, we were capable to determination rapidly and decisively on, including realignment of our workforce done the reassignment of immoderate employees to caller roles and an wide headcount simplification successful 2025 of 27% year-over-year. Further, the actions taken implicit the past mates of years to institute multi-country sourcing initiatives person allowed america to somewhat mitigate a information of these caller tariff costs by shifting accumulation distant from China arsenic the highest tariff country. We judge that retailers are becoming acclimated to the caller tariff situation and the realities of caller associated costs. Our customers are progressively accepting the caller prices, which volition assistance alleviate a information of this outgo unit going forward.