Q2 2026 Jewett-Cameron Trading Company Ltd Earnings Call Transcript
Key Points
- Revenue for the second quarter increased 16% year-over-year to $10.5 million, driven by the liquidation of excess inventory and stronger sales at Greenwood.
- Gross margins improved significantly from negative 12.5% in Q1 to 15.7% in Q2, despite liquidation activities.
- The company successfully reduced wages and employee benefits by 19% year-over-year, aligning costs with current revenue levels.
- Jewett-Cameron Trading Co Ltd (JCTC) made substantial progress in selling excess cedar fencing and pet inventory, converting stranded capital back into cash.
- The company remains committed to reducing annual operating expenses by $1 million to $3 million, aiming for a sustainable business model by the end of fiscal 2026.
- Gross profit margins declined year-over-year from 20.1% in Q2 2025 to 15.7% in Q2 2026, impacted by liquidation sales at or below cost.
- Net loss for Q2 2026 was $1.2 million, compared to a net loss of $573,000 in Q2 2025, primarily due to margin pressures.
- The company faces ongoing challenges from tariffs, which continue to create cost pressures and disrupt purchasing patterns.
- Higher shipping and logistics costs, along with import tariffs, have kept costs elevated, limiting the ability to pass through higher costs quickly.
- The liquidation of certain pet inventory and excess cedar fencing, which contributed to revenue growth, will not repeat in future periods, potentially impacting future revenue.
Good afternoon, and welcome to the Jewett-Cameron reports second quarter fiscal year 2026 financial results conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Mr. Robert Blum with Lytham Partners. Please go ahead.
All right. Thank you very much, and thank you all for joining us today to discuss Jewett-Cameron's operational and financial results for the fiscal 2026 second quarter. This is for the period ended February 28, 2026. With us on the call representing the company today are Chad Summers, Jewett-Cameron's Chief Executive Officer; and Mitch Van Domelen, the company's Chief Financial Officer.
At the conclusion of today's prepared remarks, we will address questions that have been submitted to the company.
Before we begin with prepared remarks, please note that statements made by the management team at Jewett-Cameron during the course of this conference call may contain forward-looking statements within
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
