Jewett-Cameron Reports $3.94 Million Net Loss and Revenue Decline Amid Operational Challenges

Jewett-Cameron Trading Company Ltd. reported a net loss of $3.94 million, or $1.12 per share, for the three months ended November 30, 2025, compared to a net loss of $658,717, or $0.19 per share, for the same period in 2024. The company's revenue decreased by 7% to $8.65 million from $9.27 million year-over-year, primarily due to higher import tariffs, reduced consumer demand, and operational disruptions caused by a cybersecurity incident. The gross margin for the quarter was negative 12.5%, a significant decline from a positive 18.3% in the prior year, largely attributed to a $2.21 million inventory write-down related to excess lumber and pet inventory.

In terms of operational changes, Jewett-Cameron has been restructuring its workforce, resulting in a 26% reduction in wages and employee expenses compared to the previous year. The company also reported a decrease in accounts receivable to $3.31 million from $3.86 million, while cash and cash equivalents increased to $1.04 million from $226,213. Current liabilities rose to $6.41 million, driven by an increase in bank indebtedness to $4.23 million, up from $2.10 million at the end of the previous fiscal year.

Strategically, Jewett-Cameron has focused on its fencing and pet product lines, which are less sensitive to economic downturns compared to new home construction. The company has also been working to liquidate older inventory, particularly in the pet segment, to improve cash flow. Additionally, Jewett-Cameron has listed its surplus properties for sale, including an 11.6-acre site previously used for seed operations, with an asking price of $7.22 million, and an innovation studio property listed at $795,000.

Looking ahead, Jewett-Cameron anticipates continued challenges due to high import tariffs and sluggish consumer demand, particularly in the pet products market. The company is evaluating strategic alternatives for its industrial wood operations and is focused on reducing costs while improving product offerings. The revised line of credit agreement with Northrim Funding Services, which increased borrowing capacity, is expected to provide additional liquidity to support operations through the upcoming busy seasons. The company remains committed to enhancing its operational efficiencies and addressing the impacts of external market conditions on its financial performance.