Jewett-Cameron Trading 2025 Q3 Earnings Misses Targets with Net Income Down 519.5%

Jewett-Cameron Trading (JCTC) reported its fiscal 2025 Q3 earnings on July 14th, 2025. The company's earnings missed expectations, with a significant decline in net income due to tariff volatility affecting revenue streams. Despite these challenges, management remains focused on operational efficiencies to mitigate costs. Guidance indicates ongoing hurdles but anticipates stabilization as tariff negotiations progress.

Revenue
Jewett-Cameron Trading's total revenue for fiscal Q3 2025 fell to $12.61 million, marking a decrease of 20.7% from the $15.90 million reported in Q3 2024. This decline was primarily driven by uncertainties surrounding tariffs, which prompted many retailers to defer purchases of imported metal products, impacting sales.

Earnings/Net Income
Jewett-Cameron Trading reported a net loss of $0.18 per share in Q3 2025, a downturn from a profit of $0.04 per share in Q3 2024, reflecting a 550.0% negative change. The company's net loss reached $649,634, representing a 519.5% deterioration from a net income of $154,862 in the previous year. This EPS result indicates poor performance.

Price Action
The stock price of Jewett-Cameron Trading has shown mixed movement recently, decreasing by 1.81% during the latest trading day, increasing by 1.34% over the past week, and slightly declining by 0.26% month-to-date.

Post-Earnings Price Action Review
The investment strategy of buying Jewett-Cameron Trading shares on the date of a revenue increase and holding for 30 days has demonstrated promising returns over the past three years. This approach leverages the positive momentum from revenue raises, which signal the company's growth potential. Historically, the revenue raise event occurs at least biannually, providing multiple opportunities for investors. Short-term gains are often realized within the 30-day holding period, reflecting the stock's resilience following earnings announcements. The strategy has achieved a maximum return of 15.25% in the latest report period, with a 75% success rate over three years, marked by only one instance of a negative return. The strategy's success depends on market perceptions of JCTC's growth prospects, sustained revenue increases, and improved profitability. While macroeconomic factors like tariff changes can impact results, stability in trade policies could enhance this strategy's effectiveness. Overall, the backtest suggests that buying JCTC shares on revenue raise days offers a high probability of positive short- to medium-term returns, though investors should be mindful of broader market conditions and company developments.

CEO Commentary
"Tariff volatility significantly impacted our Q3 results as many retailers deferred purchases of imported metal products. Rapid and unpredictable tariff changes increased costs and stressed the supply chain," commented Chad Summers, CEO of Jewett-Cameron. "We've implemented initiatives to mitigate these impacts and believe that resolving tariff negotiations will restore normalized purchasing patterns, highlighting our growth initiatives."

Guidance
The company expects continued financial challenges due to tariff impacts, but anticipates a return to normalized purchasing patterns as negotiations progress. Management foresees gross margins reverting to historical levels as pricing initiatives take effect. Despite a Q3 2025 net loss of $0.6 million, leadership remains focused on operational efficiency and future growth opportunities.

Additional News
In recent weeks, Jewett-Cameron Trading has seen significant developments beyond its earnings report. The company is exploring strategic partnerships to diversify its supply chain and reduce reliance on countries with high tariffs. Additionally, Jewett-Cameron is in discussions to secure broader retail distribution for its Adjust-A-Gate product line, potentially enhancing market presence. Furthermore, the company's decision to sell its underperforming seed cleaning facility could inject needed capital, strengthening its financial position. These initiatives underscore Jewett-Cameron's focus on long-term growth and adaptability in a challenging trade environment.