Jewett-Cameron Reports Decline in Sales and Increased Net Loss for Third Quarter

Jewett-Cameron Trading Company Ltd. reported a decline in financial performance for the third quarter and nine-month period ending May 31, 2026, as detailed in its latest 10-Q filing. The company recorded sales of $9.85 million for the third quarter, a decrease of 22% from $12.61 million in the same period last year. For the nine-month period, total sales were $29.04 million, down 6% from $30.93 million in the prior year. The decline in revenue was primarily attributed to the loss of a significant cedar fencing supply agreement, which had previously contributed substantially to sales.

The company's gross profit for the third quarter was $1.77 million, yielding a gross margin of 18%, an improvement from 15% in the prior year. However, the overall net loss for the quarter was $814,330, or $0.23 per share, compared to a loss of $649,634, or $0.18 per share, in the same quarter of the previous year. For the nine-month period, the net loss increased to $6.01 million, or $1.71 per share, from a loss of $1.88 million, or $0.54 per share, in the prior year. The increase in losses was influenced by inventory write-downs and the impact of high import tariffs.

In terms of operational changes, Jewett-Cameron has been focusing on its core product lines, particularly in the fencing and pet product segments, while also liquidating excess inventory. The company reported a significant reduction in inventory, which fell by 53% to $7.45 million, as it sold off excess cedar fencing and older pet inventory. The company’s cash and cash equivalents increased to $1.06 million, up from $226,213 at the end of the previous fiscal year, primarily due to improved collection of accounts receivable.

Strategically, Jewett-Cameron has renewed its line of credit with Northrim Funding Services, adjusting the terms to better align with its current operational needs. The maximum borrowing limit against accounts receivable was set at $6 million, while borrowing against inventory was reduced to $3 million. The company is also exploring options to strengthen its liquidity position, including the potential sale of non-core assets and unused real estate.

Looking ahead, Jewett-Cameron anticipates continued challenges due to high global tariffs, inflationary pressures, and restrained consumer spending. The company is committed to reducing operating costs and enhancing its product offerings to improve profitability. However, it acknowledges that the current economic environment may hinder its ability to achieve these goals in the near term.