Jewett-Cameron Trading's Q2 2025: Insider Purchases and Ownership Raise Questions of Confidence

These are the key contradictions discussed in Jewett-Cameron Trading Company Ltd.'s latest 2025Q2 earnings call, specifically including: Insider Purchases of Shares and Insider Ownership of the Company Shares:



Metal Fencing Products Growth:
- Jewett-Cameron reported an increase in sales of metal fencing products compared to Q2 of last year, driven by the ongoing load-in of new Lifetime Steel Post in-store displayers.
- The growth was due to the successful rollout of these new displayers into over 330 Home Depot and Lowe's stores, increasing the company's presence in key retail channels.

Pet Product Inventory and Sales Challenges:
- Jewett-Cameron experienced a decline in pet product sales in the current quarter compared to Q2 2024, due to downstream retail channel inventory congestion.
- This was attributed to a significant reduction in pet product inventory, which is down over 17% from a year ago, and nearly 60% from the peak in February 2023.

Tariff Impact and Supply Chain Strategy:
- The company faced a challenging global steel tariff environment, which raised prices for everyone.
- Jewett-Cameron's strategic supply chain initiatives implemented over the last two years, including multi-sourcing and expanding sourcing countries, positioned the company better to navigate the tariff situation and offer competitive pricing.

Gross Margin and Operational Efficiency:
- Gross margins for Q2 2025 were 20.1%, a decrease from the year-ago period's 25.1%, primarily due to a shift in sales mix to lower-margin products.
- The decrease in margins was partially offset by a reduction in operating expenses through a realignment and reduction in headcount, contributing to operational efficiency.

Greenwood Segment Performance:
- Sales at the Greenwood operating segment increased by 31% to $1.1 million in Q2 2025 compared to $0.9 million in Q2 2024.
- This growth was driven by accelerated purchases from customers amid tariff uncertainty, highlighting the segment's resilience in the face of external challenges.