Stella-Jones Updates Its Financial Objectives Building on Sustained Growth - Seite 2

GROWING SALES AND EBITDA MARGIN

After achieving the high-end of its sales target in the first year of the Company’s 2022–2024 financial objectives, Stella-Jones expects sales to increase organically at a compound annual growth rate of approximately 6% to over $3.6 billion by 2025. This growth is expected to be driven by a 9% compound annual sales increase of the Company’s infrastructure-related businesses. Led by an improvement in its product mix, Stella-Jones has also increased its target EBITDA margin to 16% for the 2023–2025 period, up from its previous target of approximately 15%.

LEVERAGING STRONG CASH GENERATING PROFILE

Stella-Jones has an established track record of generating consistent and strong cashflows which provides flexibility to deliver significant value to shareholders. The Company is pursuing growth investments to enhance its utility poles capacity for the growing demand, while reaffirming its commitment to return capital to shareholders in excess of $500 million through dividends and share repurchases, in the 2023–2025 period. The Company continues to maintain its net leverage target range of 2.0x to 2.5x. Given its strong cashflow generating profile, the Company may temporarily exceed its target leverage ratio to finance strategic growth opportunities related to its infrastructure-related businesses.

INVESTOR DAY

Stella-Jones will elaborate on its 2023–2025 financial objectives at the Company’s investor day for institutional investors and research analysts, which is taking place today in Toronto, Ontario.

The event will begin at 8 a.m. Eastern Daylight Time (EDT). After the presentation, the leadership team will be available to answer questions. The live webcast can be accessed at the following link: https://web.lumiagm.com/411173957. An investor presentation will also be made available on the Investor Relations, Events and Presentations page of the Company’s website.

A replay will be available at the same link as the webcast, and on the Investor Relations section of the Company’s website following the event.

⁽¹⁾ _{Refer to the section entitled “Non-GAAP and Other Financial Measures” of the first quarter 2023 Management’s Discussion & Analysis for an explanation of the non-GAAP and other financial measures used and presented by the Company.}
⁽²⁾ _{Refer to the 2021 Annual Management’s Discussion & Analysis for further details and assumptions used in preparing the 2022–2024 financial objectives.}