Jewett-Cameron Trading (NASDAQ:JCTC) executives highlighted continued momentum in the company’s metal fencing business and progress on supply chain diversification during the company’s fiscal 2026 second-quarter earnings call, while also detailing margin pressure tied to the rollout of in-store display units and ongoing weakness in pet-related demand.
Metal fencing gains and new product rollout
Chief Executive Officer Chad Summers said the company’s innovation in its metal fence category is driving growth, pointing to the expanded placement of new in-aisle merchandising. Summers said Jewett-Cameron exceeded its target through February for getting new Lifetime Steel Post display units into “over 330 Home Depot and Lowe’s stores,” up from about 200 stores roughly three months earlier.
Summers also reiterated the company’s launch of a new “low-profile” Adjust-A-Gate Unlimited gate kit, describing it as a patent-pending design intended to be largely visually unobtrusive once installed and sold as a complete kit that includes hinges, latch, strike plate, and a truss cable to prevent sag. The product supports horizontal and vertical designs, he said, and can accommodate gates up to 72 inches high and 84 inches wide.
Tariffs and supply chain strategy
Tariffs were a key theme of the discussion. Summers said Jewett-Cameron began a multi-sourcing strategy about two years ago to reduce dependence on any single supplier and expand sourcing outside China. He said the effort has given the company “options that many other importers may not have” amid shifting tariff policies.
Summers noted that a “global steel tariff of 25% implemented in March impacts all imported steel products from around the world,” and said the company will continue monitoring conditions and working with suppliers and customers to navigate the environment.
Quarterly financial performance
Chief Financial Officer Mitch Van Domelen emphasized that Jewett-Cameron’s revenue is seasonal, with the bulk of impactful sales typically occurring in the third and fourth fiscal quarters (March through August). For the quarter discussed on the call, the company reported revenue of $9.1 million, up from $8.2 million in the comparable quarter a year earlier.
Van Domelen said higher metal fencing sales were driven by the “ongoing load-in” of Lifetime Steel Post in-store displayers. Greenwood segment sales rose to $1.1 million from $0.8 million in the year-ago quarter, which he attributed to customers accelerating some purchases amid tariff uncertainty. Compostable products were flat year over year, he said.
Those gains were partially offset by declines in wood fencing and pet products. Van Domelen said wood fencing sales fell due to “materials constraints,” while pet demand remained weak and declined compared to the prior-year quarter.
Gross margin was 20.1% versus 25.1% a year earlier, and 18.3% in the prior quarter. Van Domelen attributed the year-over-year decline primarily to a shift in sales mix toward lower-margin items and the “high cost of additional in-store display units produced domestically and deployed during the quarter,” which increased costs compared to the same period last year. Summers separately said the displayers were initially produced domestically at high cost to meet customer timing, but that the company “greatly reduced the displayer cost by producing these displayers overseas in the second quarter,” which he said should diminish future margin impact.
Operating expenses were $2.6 million, down from $2.8 million a year earlier, which Van Domelen said was primarily driven by “a realignment and reduction in headcount to new business processes.” Loss from operations was $0.8 million, compared to a $0.7 million operating loss in the year-ago quarter.
Net results swung year over year. The company posted a net loss of $0.6 million, or $0.16 per basic and diluted share, compared to net income of $0.5 million, or $0.15 per basic and diluted share, in the comparable quarter last year.
Inventory reduction, liquidity, and asset monetization
Management emphasized working capital improvement efforts. Van Domelen said inventory fell 23% to $14.9 million at February 28, 2025, from $17.6 million at February 29, 2024. Cash totaled $0.4 million, down from $1.1 million a year earlier. He said the company has no long-term debt, and has access to a $6 million revolving line of credit used for seasonal working capital needs. “Subsequent to the end of this second quarter, we began drawing on our line,” he said.
Total stockholder equity was $23.7 million, or $6.73 per share, Van Domelen said.
Summers and Van Domelen also discussed the company’s former seed cleaning facility property in Oregon, which Summers said is on the market. Summers said the company originally listed the property for sale at $9 million, while it is carried on the books for less than $600,000. While noting there is no assurance the property will sell at that price, Summers said management believes proceeds would be “well north” of book value and additive to shareholder value. He said the company may also elect to lease part or all of the space in the near term, but that the goal is to “fully monetize the asset.”
Business line updates and investor communications
In other operational updates, Summers said downstream retail inventory congestion has continued to weigh on pet containment sales, although online sales for several pet products have “started to pick up recently.” He said pet inventory was down more than 17% from a year ago and nearly 60% from its peak in February 2023, and suggested the company’s pet product pricing could become attractive to retailers seeking to avoid higher tariffs on imported competing products.
Summers also said the company’s MyEcoWorld sustainable bag products—introduced after transitioning away from Lucky Dog compostable poop bags—have shown strong growth over a 15-month period, driven by online performance, adoption in grocery channels, and what he described as recent success of post-consumer recycled plastic dog waste bags in Mexico.
During the Q&A, Summers responded to a question about insider open-market purchases by saying he could not speak for everyone and would review the matter, noting that management teams are sometimes restricted from buying shares due to material information.
In closing remarks, Summers said the company recently began holding quarterly conference calls and updated its Nasdaq trading symbol from JCTCF to JCTC. He also said the company plans to attend the Planet MicroCap Showcase in Las Vegas on April 23 and 24 as part of an effort to increase investor awareness.
About Jewett-Cameron Trading (NASDAQ:JCTC)
Jewett-Cameron Trading Company Ltd. is a supplier of `Value-added` building materials to major home improvement center chains in the western United States. The Company concentrates on the residential repair and remodeling segment of the building materials industry.
