Jewett-Cameron Trading 2026 Q1 Earnings Deepening Losses as Net Loss Widens 498.8%

Jewett-Cameron Trading (JCTC) reported Q1 2026 results marked by a significant decline in revenue and profitability, with the net loss widening sharply year-over-year. The company’s stock price has since declined across daily, weekly, and monthly metrics, underscoring investor concerns. Management emphasized strategic investments in digital infrastructure but acknowledged macroeconomic headwinds.

Revenue

Jewett-Cameron Trading’s total revenue fell 6.6% to $8.65 million in Q1 2026, driven by a 12% decline in the Pet, Fencing, and Other segment. Industrial wood products, however, saw a 45% year-over-year increase to $1.22 million, reflecting strong demand for Greenwood industrial wood. The Lawn, garden, pet, and other segment contributed $7.43 million, though this segment faced challenges from high retailer inventory levels and weak consumer demand.

Earnings/Net Income

The company’s net loss widened to $3.94 million in Q1 2026, representing a 498.8% increase from $658,717 in the prior year. This was driven by a $2.21 million inventory write-down and operational inefficiencies. The EPS of -$1.12 highlights a significant deterioration in profitability compared to the previous year’s -$0.19.

Post-Earnings Price Action Review

The strategy of buying JCTC shares after its revenue drop quarter-over-quarter and holding for 30 days has shown poor performance over the past three years, with a cumulative return of -39.5%. This underperformance suggests the market has not capitalized on potential rebounds following quarterly revenue declines. Short-term volatility and operational challenges, including inventory write-downs and supply chain disruptions, have compounded the stock’s struggles. While a longer-term holding period might allow for strategic adjustments to take effect, the current environment remains uncertain.

CEO Commentary

CEO John M. Cameron attributed the Q1 losses to volatile commodity prices and supply chain disruptions. He emphasized investments in digital infrastructure and regional distribution networks as long-term growth drivers, stating, “We are prioritizing resilience over short-term gains.” Despite the $3.94 million net loss, Cameron expressed cautious optimism about market stabilization in the latter half of 2026.

Guidance

The company did not provide explicit forward-looking guidance during the earnings call. However, Q1 results indicate ongoing cost optimization efforts and a focus on core sectors like industrial wood and fencing.

Additional News

Jewett-Cameron Trading expanded its Lifetime Steel Post® in-store displays to 334 locations in Q1 2025, targeting both professional contractors and DIY homeowners. Additionally, the company faced a cybersecurity incident that disrupted order processing and shipping for several weeks. Management also announced plans to monetize non-core assets and reduce operating expenses by $1–$3 million annually to strengthen liquidity.