<span item_type="fundamental" item_id="5cca30a2befab3b32a59035537c7e433" counter_id="ST/US/JCTC" env="prod"></span><span item_type="announcement" item_id="604903649961708929" env="prod"></span><p>Revenue: As of FY2026 Q1, the actual value is USD 8.653 M.</p><p>EPS: As of FY2026 Q1, the actual value is USD -1.12.</p><p>EBIT: As of FY2026 Q1, the actual value is USD -3.785 M.</p><p></p><h4>Consolidated Financial Performance</h4><h5>Revenue</h5><p>For the three months ended November 30, 2025, total sales were $8,653,467, a 7% decrease from $9,267,001 for the same period in 2024, attributed to higher tariff rates, lower lumber sales, negative consumer sentiment, and a cybersecurity incident <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>.</p><h5>Gross Profit and Margin</h5><p>Gross profit for the three months ended November 30, 2025, was - $1,078,932, a significant drop from $1,693,902 in the prior year period <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>. The gross margin was -12.5% for 2025, compared to 18.3% for 2024, primarily due to a $2,208,813 inventory write-down, a shift to higher volume lower-margin products, increased import tariffs, higher shipping and logistics costs, and liquidation sales of certain pet inventory <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>.</p><h5>Operating Expenses</h5><p>Total operating expenses increased to $2,705,683 for the three months ended November 30, 2025, from $2,552,047 in the prior year <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>. Selling, general, and administrative expenses rose to $1,401,035 from $809,213, mainly due to higher professional fees and increased lumber warehousing costs <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>. Wages and employee benefits decreased significantly to $1,227,038 from $1,661,768 due to workforce reduction <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>. Depreciation and amortization slightly decreased to $77,610 from $81,066 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>.</p><h5>Operating Profit/Loss</h5><p>Loss from operations for the three months ended November 30, 2025, was - $3,784,615, compared to a loss of - $858,145 for the same period in 2024, with an additional - $2,208,813 contributed by inventory write-downs <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>.</p><h5>Net Loss</h5><p>The net loss for the three months ended November 30, 2025, was - $3,944,139, compared to a net loss of - $658,717 for the same period in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>.</p><h5>Cash Flow</h5><p>Net cash used in operating activities was - $1,321,396 for the three months ended November 30, 2025, an improvement from - $1,777,476 in the prior year period <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>. Net cash provided by financing activities was $2,131,401, primarily from bank indebtedness, compared to $0 in the prior year <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>. Net cash used in investing activities was $0 for the current quarter, compared to - $36,500 in the prior year <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>. Cash and cash equivalents increased to $1,036,218 at November 30, 2025, from $226,213 at August 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>.</p><h4>Segmented Performance (Three Months Ended November 30)</h4><h5>Pet, Fencing and Other Segment (JCC)</h5><p>Revenue decreased by 12% to $7,429,015 in 2025 from $8,424,968 in 2024, primarily due to customer slow acceptance of higher prices, a cybersecurity incident, reduced lumber purchases, and liquidation sales of pet products <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>. The segment reported an operating loss of - $3,893,158 in 2025, significantly higher than the - $920,237 loss in 2024, including a $2,208,813 inventory write-down <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>. Depreciation and amortization were $23,042 in 2025, up from $19,125 in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>.</p><h5>Industrial Wood Products Segment (Greenwood)</h5><p>Revenue increased by 45% to $1,224,452 in 2025 from $842,033 in 2024, driven by strengthening demand from municipalities and transit operators, and the addition of a new non-transit industrial customer <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>. The segment achieved an operating profit of $125,281 in 2025, a turnaround from an operating loss of - $23,830 in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>. Depreciation and amortization were $0 in both 2025 and 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>.</p><h5>Corporate and Administrative Services Segment (JC USA)</h5><p>The segment reported an operating loss of - $145,887 in 2025, compared to an operating income of $108,720 in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>. Depreciation and amortization were $54,568 in 2025, down from $61,941 in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>.</p><h4>Other Key Metrics</h4><p>Working capital decreased to $13,636,039 at November 30, 2025, from $17,026,472 at August 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>. Bank indebtedness increased to $4,233,236 at November 30, 2025, from $2,101,835 at August 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>. Accounts receivable decreased to $3,313,266 at November 30, 2025, from $3,863,678 at August 31, 2025, with two customers accounting for 72% of the total <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>. Inventory decreased to $13,526,812 at November 30, 2025, from $15,885,589 at August 31, 2025, due to liquidation and write-downs, with an additional $550,000 inventory allowance recorded for pet inventory <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>. Days Sales Outstanding (DSO) improved to 35 days for the three months ended November 30, 2025, from 41 days in the prior year period <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>. Inventory Turnover increased to 166 days for the three months ended November 30, 2025, from 160 days in the prior year period <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>. Three suppliers accounted for 10% or greater of total purchases, aggregating $3,651,453, for the three months ended November 30, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>. Property, Plant and Equipment net book value decreased to $3,089,619 at November 30, 2025, from $3,643,114 at August 31, 2025, including a $140,304 write-off of capitalized website expenses <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>. Assets held for sale included the former JCSC property ($566,022) and the innovation studio property ($335,789) <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>.</p><h4>Future Outlook and Strategy</h4><p>Jewett-Cameron Trading Company Ltd. expects fiscal year 2026 to remain challenging due to continued uncertainty and higher costs from global tariffs <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>. The company’s strategic plan involves concentrating resources on successful fencing and pet product lines, monetizing non-core assets, disposing of excess inventory, and evaluating strategic alternatives for the company and its operating segments <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>. Management aims to reduce costs, refine development efforts to improve existing products, and increase sales and margins to return to profitability <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/885307/000107997326000083/jctc_10q.htm"></span>.</p>

Jewett-Cameron | 10-Q: FY2026 Q1 Revenue: USD 8.653 M