Jewett‑Cameron Trading Company Ltd. (JCTC) posted a first‑quarter 2026 loss of $3.9 million, or $1.12 per share, on revenue of $8.7 million, a 7% decline from the $9.3 million earned in the same period a year earlier. The loss widened sharply from the $659,000 ($0.19 per share) reported in Q1 2025, underscoring a steep deterioration in profitability.
Gross profit margin collapsed to –12.5% from 18.3% in Q1 2025, driven by a $2.2 million write‑down of pet and lumber inventory and higher warehousing costs. Management explained that “challenging market conditions” and “changes in customer arrangements” for these legacy product lines forced the company to liquidate excess stock at steep discounts, eroding margins that would otherwise have been positive.
Operating expenses rose modestly to $2.7 million from $2.6 million, largely due to consultant fees and increased lumber warehousing costs. Wages and benefits fell to $1.2 million from $1.7 million as the company continues to trim headcount, a cost‑control measure that partially offset the impact of the inventory write‑down.
Segment performance was mixed. The core metal‑fencing business, the company’s highest‑margin line, grew modestly, while the Greenwood industrial‑wood segment posted a 45% year‑over‑year increase in sales. In contrast, lumber and pet product sales fell sharply, contributing to the overall revenue decline and margin compression.
JCTC also announced a revised credit‑line agreement with Northrim Funding Services, raising the borrowing limit to $8 million from $6 million and improving advance rates on accounts receivable and inventory. The amendment is intended to provide liquidity for the upcoming spring and summer selling seasons and to support the company’s strategic realignment toward its core metal‑fencing business.
CEO Chad Summers noted that “unfavorable tariff uncertainty continues to pressure costs and disrupt purchasing behavior,” but added that the company has made progress on renegotiating customer agreements to better align costs with prices. He emphasized that the metal‑fencing segment’s growth and the Greenwood segment’s strong performance signal a positive trajectory, even as the company navigates inventory write‑downs and headwinds in legacy lines.
Market reaction to the results was negative, with investors focusing on the widened loss, negative gross margin, and revenue decline. Analysts highlighted the company’s strategic shift and cost‑cutting efforts but remained cautious, citing ongoing tariff pressures and weak consumer sentiment as persistent headwinds.
Overall, the quarter reflects a challenging operating environment for JCTC, with inventory write‑downs and margin compression offsetting gains in core segments. The company’s focus on cost discipline, strategic realignment, and liquidity support positions it to navigate the near‑term headwinds while positioning for longer‑term recovery.
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