Jewett-Cameron Trading Company Sees Revenue Changes in Q3 2025

Jewett-Cameron Trading Company Ltd. Reports Key Financial Updates
Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTC), a leader in producing innovative products that enhance outdoor spaces, has revealed its operational and financial results for the third quarter. The reporting period concluded on May 31, 2025. The Company has faced challenges due to various external factors affecting its financial performance.
Operational Highlights
In the fiscal third quarter, Jewett-Cameron noted a 21% decline in total revenue compared to the same period last year. This downturn can be attributed to shifting customer purchasing habits influenced by uncertainties surrounding tariffs. Furthermore, the Company encountered interruptions in fulfilling certain wood lumber orders.
A bright spot in this report was the performance of the Lifetime Steel Posts® (LTP) product line, which enjoyed an impressive 85% sales growth compared to Q3 2024. To bolster visibility and accessibility in major retail outlets, the Company has significantly increased the installation of LTP displayers, resulting in approximately 422 total units positioned at The Home Depot and Lowe's stores as of May 2025.
Understanding the Tariff Impact
Jewett-Cameron has been navigating a complex environment marked by tariffs on imported materials, particularly from China, which were elevated in recent years. The original 25% tariff that began in 2019 saw additions leading to a spike of up to 50% earlier in 2025. In response, the Company has proactively diversified its supplier base to reduce exposure to higher tariffs, opting for strategic sourcing from countries with lower or fewer tariffs. This approach has helped to buffer the impact, albeit temporarily.
Cost Optimization Measures in Action
Given the fluctuations in tariff rates and consequent pressures on costs, Jewett-Cameron has initiated several cost management strategies. These include adjusting pricing across its product offerings with advance notice to customers, optimizing operational processes to enhance efficiency, and implementing workforce reductions of around 20% to align with adjusted business needs.
Financial Results Overview
The financial figures for Q3 2025 indicate revenue of $12.6 million, down from $15.9 million the previous quarter. This decline correlates with the anticipated effects of tariff uncertainties, prompting retail customers to hold off on purchasing metal products. Additionally, sales in the pet product segment were sluggish, combined with a decrease in cedar supply that impacted fencing sales overall.
Gross profit margins were recorded at 15.0%, a decrease from 18.6% in the same quarter last year, reflecting the compounding effects of higher tariff and shipping costs along with an increase in lower-margin product sales. The adjustment of selling prices has proven challenging due to the swift and unpredictable nature of tariff announcements.
Understanding Operating Expenses
The operating expenses for Q3 2025 totaled $2.6 million, showing a decrease from $2.9 million in Q3 2024. This reduction indicates the effectiveness of Jewett-Cameron's operational enhancements and realignment of business processes.
Leadership Insights
During a recent statement, Chad Summers, CEO of Jewett-Cameron, highlighted the significant influence of tariff fluctuations on this quarter's results. With many retailers deferring their purchases, the rapid changes in tariff rates have posed challenges to the supply chain and overall costs. However, he also expressed optimism regarding the Company’s proactive strategies, which are expected to restore normalized purchasing patterns in the future.
Looking Ahead
Jewett-Cameron remains committed to navigating the complexities of its market. The Company continues to seek ways to enhance its operations and streamline costs, positioning itself for long-term growth and stability. The ongoing efforts to sell or lease its Hillsboro property, previously used for seed processing, further reflect its dedication to optimize assets.
Frequently Asked Questions
What was the primary cause of the decrease in revenue for Q3 2025?
The revenue drop was primarily due to uncertainties surrounding tariffs that influenced customer purchasing behaviors.
How has the Company adjusted to the changing tariff landscape?
Jewett-Cameron has diversified its supplier base and implemented pricing strategies to mitigate the impact of rising tariffs.
What are the expectations for the fourth quarter regarding financial results?
Continued uncertainties in the tariff environment may negatively affect financial outcomes in the fourth quarter as well.
How is Jewett-Cameron managing its operational costs?
The Company has initiated a series of cost optimization strategies, including workforce reduction and process efficiencies.
What are the Company’s future plans for product visibility?
Jewett-Cameron plans to further increase the installation of LTP displayers across major retail chains to enhance product visibility.
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