Jewett-Cameron Q3 revenue falls on discontinued cedar contract

Jewett-Cameron expects margin pressure from tariffs and higher costs to persist.

The company plans to focus on core metal fencing products and reduce annual operating expenses. It also continues to evaluate strategic options, including potential divestitures and partnerships.

Gross profit margin rose to 18% from 15% as the mix improved in metal fencing, but the company said margins remain below norms.

The company also said the pet segment stayed soft and tariffs continued to pressure margins, along with higher product and logistics costs. Some stabilization has come from initial tariff-related price increases.

Jewett-Cameron said fiscal third-quarter revenue fell 22% year over year, mainly because of the discontinuation of a low-margin cedar fencing supply agreement, which reduced sales by over $3 million year over year.

The company reported third-quarter sales of $9.90 million and an EPS loss of $0.23.