Jewett-Cameron Reports Fiscal 2026 First Quarter Operational and Financial Results

Rhea-AI Summary

Jewett-Cameron (Nasdaq: JCTC) reported fiscal Q1 2026 results for the period ended Nov 30, 2025. Revenue was $8.7M vs $9.3M a year ago. Gross margin swung to (12.5)% from 18.3% in Q1 2025, driven by $2.2M of inventory write-downs and liquidation sales on pet and lumber inventory. Net loss was $3.9M or $1.12 per share. Greenwood industrial wood sales rose 45% YoY, and core metal fence sales returned to modest growth. Wages fell to $1.2M from $1.7M as headcount was reduced. In Dec 2025 the company amended its Northrim credit facility to increase capacity to $8.0M and higher advance rates to support inventory and operations.

Positive

• Greenwood sales +45% year-over-year
• Credit line increased to $8.0M (from $6.0M)
• Wages reduced to $1.2M from $1.7M

Negative

• Gross margin declined to (12.5)% from 18.3%
• $2.2M inventory write-downs primarily on pet and lumber
• Net loss widened to $3.9M (Q1 2026) from $659,000 (Q1 2025)
• SG&A rose to $1.4M from $809,000 due to higher professional and warehousing costs

News Market Reaction

-3.43%

1 alert

-3.43% News Effect

-$264K Valuation Impact

$7M Market Cap

0.4x Rel. Volume

On the day this news was published, JCTC declined 3.43%, reflecting a moderate negative market reaction. This price movement removed approximately $264K from the company's valuation, bringing the market cap to $7M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q1 2026 revenue: $8.7M Q1 2026 gross margin: -12.5% Inventory write-downs: $2.2M +5 more

8 metrics

Q1 2026 revenue $8.7M Q1 2026 vs $9.3M in Q1 2025 (down 7%)

Q1 2026 gross margin -12.5% Q1 2026 vs 18.3% in Q1 2025

Inventory write-downs $2.2M Additional Q1 2026 charges, mainly pet and lumber inventory

Q1 2026 net loss $(3.9)M Q1 2026 vs $(0.659)M in Q1 2025

Q1 2026 EPS $(1.12) Basic and diluted, vs $(0.19) in Q1 2025

Operating expenses $2.7M Q1 2026 vs $2.6M in Q1 2025

Wages & benefits $1.2M Q1 2026 vs $1.7M in Q1 2025 after headcount reductions

Credit line capacity $8.0M Increased from $6.0M with Northrim in Dec 2025

Market Reality Check

Price: $2.07 Vol: Volume 5,302 is 0.22x the...

low vol

$2.07 Last Close

Volume Volume 5,302 is 0.22x the 20-day average of 23,882, indicating subdued trading ahead of the release. low

Technical Shares at $2.33 are trading below the 200-day MA of $3.39 and sit 56.93% below the 52-week high.

Peers on Argus

JCTC was down 2.31% with mixed peers: several lumber/wood names like NWGL (-3.17...

JCTC was down 2.31% with mixed peers: several lumber/wood names like NWGL (-3.17%), RETO (-26.01%), and CNEY (-6%) were weaker, while ZKIN was slightly positive and ENFY was flat, suggesting stock-specific drivers over a clean sector-wide move.

Historical Context

2 past events · Latest: Dec 01 (Negative)

Pattern 2 events

Date	Event	Sentiment	Move	Catalyst
Dec 01	Full-year earnings	Negative	+2.5%	FY 2025 revenue fell, net loss widened, margins compressed from tariffs and volume.
Jul 14	Quarterly earnings	Negative	-6.9%	Q3 2025 revenue declined 21% with margin pressure and swing to net loss.

Pattern Detected

Recent earnings have often been weak, with mixed price reactions: some negative reports sold off while others saw modest gains, indicating inconsistent alignment between fundamentals and short-term moves.

Recent Company History

Over the past year, Jewett-Cameron has repeatedly highlighted tariff pressures, margin compression, and restructuring. Fiscal 2025 results showed $41.3M revenue, down 12%, and a $4.1M net loss, with gross margin falling to 15.1%. Earlier 2025 quarters also featured revenue declines, margin contraction, and workforce reductions. Management has been pursuing strategic alternatives and cost cuts of $1M–$3M annually. Today’s Q1 2026 results, with lower revenue and sharply negative margins, extend this challenged earnings trajectory.

Market Pulse Summary

This announcement details a challenging Q1 2026, with revenue of $8.7M, a gross margin of -12.5%, an...

Analysis

This announcement details a challenging Q1 2026, with revenue of $8.7M, a gross margin of -12.5%, and a net loss of $(3.9)M, impacted by a $2.2M inventory write-down and higher SG&A. Management emphasized ongoing strategic realignment, cost cuts of $1M–$3M annually, and expanded credit capacity to support operations. Investors may watch future quarters for margin recovery, progress on asset sales, and performance of core metal fencing and Greenwood businesses.

Key Terms

gross profit margins, SG&A, credit line, divestitures, +1 more

5 terms

gross profit margins financial

"Gross profit margins during Q1 2026 were (12.5)% compared to 18.3%"

Gross profit margin measures the share of sales revenue a company keeps after paying the direct costs to make or buy the products or services it sells. Think of revenue as a whole pizza and gross profit margin as the slice left after taking away the cost of the ingredients — it shows how efficiently a company turns sales into basic profit. Investors use it to compare profitability, spot pricing or cost trends, and assess how much is available to cover other expenses and generate net profit.

SG&A financial

"Selling, General and Administrative (SG&A) expenses rose to $1.4 million"

SG&A stands for Selling, General, and Administrative expenses. It includes the costs a company spends on selling products, running the business day-to-day, and managing staff, like advertising, rent, and salaries. These expenses matter because they affect how much profit a company can make from its sales.

credit line financial

"the Company had borrowed $4.2 million against its credit line with Northrim"

A credit line is an agreement with a bank or lender that lets a borrower draw money up to a set limit, repay it, and borrow again as needed — like a business credit card or overdraft for a company. It matters to investors because it provides short-term cash flexibility to cover payroll, buy inventory, or bridge timing gaps; the size, cost, and conditions of the credit line affect a company’s financial health, liquidity risk, and ability to grow.

divestitures financial

"exploring potential divestitures across select businesses and real estate assets"

Divestitures are the process of a company selling or getting rid of a part of its business, like selling a division or a product line. This often helps the company focus on its core activities or improve its financial health. For investors, divestitures can signal strategic changes or influence the company's value and future growth prospects.

joint ventures financial

"may include mergers, acquisitions, divestitures, joint ventures and other business collaborations"

A joint venture is a business arrangement where two or more companies come together to work on a specific project or goal, sharing both the risks and the rewards. It’s like partners teaming up for a common goal, which can help them access new markets, share expertise, or reduce costs. For investors, joint ventures can create new opportunities but also involve shared responsibilities and potential risks.

AI-generated analysis. Not financial advice.

Company to host webcast today, January 14, 2026, at 4:30 p.m. Eastern time

NORTH PLAINS, Ore., Jan. 14, 2026 (GLOBE NEWSWIRE) -- Jewett-Cameron Trading Company Ltd. (the “Company”; Nasdaq: JCTC), a company committed to innovative products that enrich outdoor spaces, today announced operational and financial results for the fiscal 2026 first quarter for the period ended November 30, 2025.

Management Discussion

“Many of the broader headwinds impacting our business that we have discussed for the past nine months or so continue to persist. Uncertainty surrounding tariffs continues to pressure costs and disrupt purchasing behavior, while weak consumer sentiment has restrained discretionary spending. That said, we made progress on a number of the strategic activities we presented in early December 2025 that prioritize the Company’s overall value, including the return to growth of our core metal fencing products, our largest and most successful product category, providing optimism for the future as global trade conditions stabilize. We also made progress on renegotiating several customer agreements to better align our costs with the prices we charge for our differentiated products to improve future profitability. Further, we entered into a revised lending agreement which provides additional flexibility to fund our operational realignment,” commented Chad Summers, CEO of Jewett-Cameron.

“During the first quarter, our metal fence business showed year-over-year growth and we experienced growth in Greenwood during the quarter. This growth was offset by decreased sales in lumber and pet, two areas which we previously announced initiatives to sell-off excess inventory due to challenging market conditions and changes in customer arrangements. Our reported gross profit margins were further negatively affected by a write-down on certain pet and lumber inventory, along with liquidation sales of already reserved inventory that, in essence, carried zero margin; without these factors, our gross profit margins would have shown improvement year over year. On the cost side, we continue to reduce headcount to align our operations. While the first quarter results reflect a number of challenges—some continuing from earlier in the year—we believe there are positive developments underway that will become more evident in the quarters to come.”

“We are actively working to monetize non-core assets by pursuing the sale of excess inventory, evaluating strategic partnerships and collaborations, and exploring potential divestitures across select businesses and real estate assets, allowing us to sharpen our focus on our core operations and strengthen our financial position. It is our clear objective to exit fiscal 2026 with a business model that is sustainable in the long term, leveraging the current value of non-core assets to fund our core growth strategy and deliver enhanced value to shareholders,” Summers concluded.

Financial Results

Revenue for Q1 2026 was $8.7 million compared to $9.3 million in Q1 2025, a decrease of 7%. Sales of the Company’s core metal fence business, its largest and most successful product category, were up slightly compared to the year ago first quarter despite the challenges of tariffs and continuing negative consumer sentiment, providing optimism as global trade conditions stabilize. Sales of the Company’s Greenwood industrial wood business increased 45% year-over-year as demand by municipalities and transit operators continues to strengthen, while revenues were further boosted by the addition of a new non-transit industrial customer. This growth was offset by decreased sales in lumber and pet, two areas which the Company has previously announced initiatives to sell excess inventory due to challenging market conditions and changes in customer arrangements.

Gross profit margins during Q1 2026 were (12.5)% compared to 18.3% in Q1 2025. The largest impacts on the change in the Company’s gross profit margins was due to $2.2 million in additional inventory write-downs taken during the current quarter primarily related to pet and lumber inventory.

Operating expenses during Q1 2026 were $2.7 million compared to $2.6 million in Q1 2025. Wages and employee benefits dropped significantly to $1.2 million from $1.7 million as the Company continued to reduce its headcount. Selling, General and Administrative (SG&A) expenses rose to $1.4 million from $809,000 primarily due to higher professional fees related to the engagement of additional consultants in the period and increases to the Company’s lumber warehousing costs.

Net loss for Q1 2026 was $(3.9) million or $(1.12) per basic and diluted share compared to net loss of $(659,000) million or $(0.19) per basic and diluted share in Q1 2025. Key impacts on net loss for the quarter were a $2.2 inventory write-down and engagement of additional consultants, as well as increases to the Company’s lumber warehousing costs.

As of November 30, 2025, the Company had borrowed $4.2 million against its credit line with Northrim Funding Services (“Northrim”). In December 2025, subsequent to the end of the first quarter, the Company amended its original agreement with Northrim to increase its borrowing capacity to $8,000,000, up from $6,000,000. In addition to increasing advance rates against accounts receivable (from 80% to 90%) and inventory (from 25% to 50%), amounts provided by Northrim will be secured by certain of the Company’s real estate assets. Proceeds from the sale of any such assets will be used to pay down the credit line and thereafter the funding arrangement will revert to the original conditions and limits set forth prior to the recent amendments. The Company believes that the increase in the Company’s credit line provides it with additional flexibility to provide funds to help our operational realignment and the purchase of inventory ahead of our traditionally busier Spring and Summer seasons.

Continual Strategic Review

As previously announced on December 1, 2025, the Company has begun implementation of its strategic realignment to promote growth and profitability following a challenging second half of fiscal 2025 and first quarter of fiscal 2026, which was marked by significant volatility primarily due to the uncertain tariff and global economic situation over the past several months.

Management and the Board have evaluated, and continue to evaluate, a variety of strategic options for the Company, as well as its individual operating segments and assets, that prioritize the Company’s overall value.

This comprehensive strategy includes:

• Concentrating on the Company’s core metal fencing products, its largest and most successful product category, and optimizing sales of other product categories.

• Significantly improving operational efficiencies and cost structure with a commitment to reduce annual operating expenses by $1 million to $3 million. It is the Company’s intent to exit fiscal 2026 with a business model that is sustainable in the long term, leveraging the current value of non-core assets to fund its core growth strategy and deliver enhanced value to shareholders.

• The Company is pursuing opportunities to sell excess inventory, and explore collaborative alliances and business partnerships to best monetize non-core assets and business lines which may include the Company’s industrial lumber subsidiary, selective pet assets, its wood fencing business, and sale of certain real estate assets.
  
  

Strategic options under consideration may include mergers, acquisitions, divestitures, joint ventures and other business collaborations and partnerships that would potentially involve specific assets or business lines of the Company. The Company engages in preliminary discussions with third parties from time to time regarding a variety of potential transactions. There can be no assurance that these discussions will result in definitive agreements or the completion of any transaction. The Company does not intend to provide further updates on these discussions unless and until a definitive agreement is reached.

Conference Call Details

Date and Time: Wednesday, January 14, 2026, at 4:30 p.m. Eastern time

Webcast Information: The webcast will be accessible live and will be archived at https://app.webinar.net/j7W3pWOp41Q and accessible on the Investors section of the Company's website at https://jewettcameron.com/pages/investor-relations. To submit questions, please send them to JCTC@lythampartners.com.

About Jewett-Cameron Trading Company Ltd. (JCTC)

Jewett-Cameron Trading Company Ltd. is a trusted provider of innovative, high-quality products that enrich outdoor spaces. Jewett-Cameron Company's business consists of the manufacturing and distribution of patented and patent-pending specialty metal and sustainable bag products and the wholesale distribution of wood products. The Company's brands include Lucky Dog® for pet products; Jewett Cameron Fence for brands such as Adjust-A-Gate®, Fit-Right®, Perimeter Patrol®, Euro Fence, Lifetime Steel Post®, and Jewett Cameron Lumber for gates and fencing; MyEcoWorld® for sustainable bag products; and Early Start, Spring Gardner, Greenline® and Weatherguard for greenhouses. Additional information about the Company and its products can be found on the Company's website at www.jewettcameron.com.

Forward-looking Statements

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words like “plans”, “expects”, “aims”, “believes”, “projects”, “anticipates”, “intends”, “estimates”, “will”, “should”, “could” and similar expressions in connection with any discussion, expectation, or projection of future operating or financial performance, events or trends. Forward-looking statements are based on management's current expectations and assumptions, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict, including but not limited to the fact that our business is highly competitive, we are continually seeking ways to expand our business, we may seek additional financing or other ways to expand operations and improve margins, the uncertainties of the Company's new product introductions, the risks of increased competition and technological change, customer concentration risk, supply chain delays, governmental and regulatory risks, and uncertain tariff and transport rates, as well as the other risk factors that are set forth in more detail in our Annual Report on Form 10-K and other documents filed with the Securities and Exchange Commission. Actual outcomes and results may differ materially from these expectations and assumptions due to changes in global political, economic, business, competitive, market, regulatory and other factors. We may not actually achieve the goals or plans described in our forward-looking statements, and investors should not place undue reliance on these statements. Any forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to publicly update or review any forward-looking information, whether as a result of new information, future developments or otherwise, except as required by law.

Investor Contact:
Robert Blum
Lytham Partners
Phone: (602) 889-9700
JCTC@lythampartners.com

JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)

		November 30, 2025			August 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	1,036,218		$	226,213
Accounts receivable, net of allowance of $0 (August 31, 2025 – $0)		3,313,266			3,863,678
Inventory, net of allowance of $3,050,000 (August 31, 2025 – $1,200,000) (note 3)		13,526,812			15,885,589
Assets held for sale (note 4)		901,811			566,022
Prepaid expenses		1,109,415			1,000,439
Prepaid income taxes		157,276			180,151
Total current assets		20,044,798			21,722,092
Property, plant and equipment, net (note 4)		3,089,619			3,643,114
Intangible assets, net (note 5)		111,181			111,389
Deferred tax assets (Note 6)		–			3
Total assets	$	23,245,598		$	25,476,598
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	1,204,550		$	1,510,173
Bank indebtedness (note 7)		4,233,236			2,101,835
Accrued liabilities		970,973			1,083,612
Total liabilities		6,408,759			4,695,620
Stockholders’ equity
Capital stock (notes 8, 9) Authorized 21,567,564 common shares, no par value 10,000,000 preferred shares, no par value Issued 3,518,119 common shares (August 31, 2025 – 3,518,119)		830,003			830,003
Additional paid-in capital		852,510			852,510
Retained earnings		15,154,326			19,098,465
Total stockholders’ equity		16,836,839			20,780,978
Total liabilities and stockholders’ equity	$	23,245,598		$	25,476,598

Subsequent events (Note 14)

The accompanying notes are an integral part of these consolidated financial statements.

JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)

	Three Months Ended November 30, 2025			Three Months Ended November 30, 2024
SALES	$	8,653,467		$	9,267,001
COST OF SALES		9,732,399			7,573,099
GROSS PROFIT		(1,078,932)			1,693,902
OPERATING EXPENSES
Selling, general and administrative expenses		1,401,035			809,213
Depreciation and amortization (notes 4, 5)		77,610			81,066
Wages and employee benefits		1,227,038			1,661,768
		2,705,683			2,552,047
Loss from operations		(3,784,615)			(858,145)
OTHER ITEMS
Gain on sale of property, plant and equipment		–			800
Interest (expense) income		(129,149)			21,998
Total other items		(129,149)			22,798
Loss before income taxes		(3,913,764)			(835,347)
Income tax (expense) recovery		(30,375)			176,630
Net loss	$	(3,944,139)		$	(658,717)
Basic loss per common share	$	(1.12)		$	(0.19)
Diluted loss per common share	$	(1.12)		$	(0.19)
Weighted average number of common shares outstanding:
Basic		3,518,119			3,504,802
Diluted		3,518,119			3,504,802

The accompanying notes are an integral part of these consolidated financial statements.

JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)

	Three Months Ended November 30, 2025			Three Months Ended November 30, 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(3,944,139)		$	(658,717)
Items not involving an outlay of cash:
Depreciation and amortization		77,610			81,066
Gain on sale of property, plant and equipment		–			(800)
Write-off of property, plant and equipment		140,304			–
Deferred income taxes		3			(207,005)
Changes in non-cash working capital items:
Decrease (increase) in accounts receivable		550,412			(514,895)
Decrease (increase) in inventory		2,358,777			(334,304)
Increase in prepaid expenses		(108,976)			(86,612)
Decrease in prepaid income taxes		22,875			30,376
Decrease in accounts payable and accrued liabilities		(418,262)			(86,585)
Net cash used in operating activities		(1,321.396)			(1,777,476)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds on sale of property, plant and equipment		–			800
Purchase of property, plant and equipment		–			(37,300)
Net cash used in investing activities		–			(36,500)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank indebtedness		2,131,401			–
Net cash provided by financing activities		2,131,401			–
Net increase (decrease) in cash		810,005			(1,813,976)
Cash, beginning of period		226,213			4,853,367
Cash, end of period	$	1,036,218		$	3,039,391

Supplemental disclosure with respect to cash flows (Note 13)

FAQ

What were Jewett-Cameron (JCTC) Q1 2026 revenues and EPS?

Q1 2026 revenue was $8.7M and net loss per share was $1.12 basic and diluted.

Why did JCTC's gross margin turn negative in Q1 2026?

Gross margin fell to (12.5)% largely due to $2.2M of inventory write-downs and liquidation sales on pet and lumber inventory.

How did Greenwood and metal fence segments perform for JCTC in Q1 2026?

Greenwood sales increased 45% YoY and core metal fence sales returned to modest year-over-year growth.

What changes were made to JCTC's credit facility in Dec 2025?

The Northrim facility was amended to increase capacity to $8.0M, raise advance rates (AR to 90%, inventory to 50%), and secure advances with certain real estate.

What cost actions did JCTC take in Q1 2026 to improve margins?

The company reduced headcount, lowering wages to $1.2M, and is pursuing $1M–$3M in annual operating expense reductions.

Is JCTC pursuing asset sales or strategic options after Q1 2026 results?

Yes; the company is pursuing sale of excess inventory, potential divestitures, partnerships, and possible sale of select real estate and business lines.