SJ: Connecting The Dots: SJ flash read-through – Valmont Investor Day takeaways

研报英文原文证据摘录

SJ: Connecting The Dots: SJ flash read-through – Valmont Investor Day takeaways

EQUITY RESEARCH QUICK TAKE

RBC Dominion Securities Inc.

James McGarragle, CFA, CPA (Analyst)

Louis Derlis, CFA (Senior Associate)

June 17, 2026

Stella-Jones Inc.

Connecting The Dots: SJ flash read-through – Valmont Investor Day takeaways

TSX: SJ | CAD 82.15 | Sector Perform | Price Target CAD 85.00

Sentiment: Positive

Our view. Valmont's (not covered) Investor Day provided a number of incremental positives for the SJ demand thesis. Most

directly relevant, Valmont's Infrastructure President explicitly called out distribution as "primarily a wood market" with meaningful

hardening-driven upgrade activity underway — a direct validation of SJ's core product cycle, with RFQ volumes up materially

across both distribution and transmission tiers. On the steel/transmission side, Valmont's commentary around a highly visible

customer pipeline and projects extending through 2027–2028 and beyond, combined with a pole/structures SAM expanding from

$8B to $13B 2026-2030, is highly consistent with SJ's recent Locweld acquisition and the US$50M US steel lattice greenfield

(commissioning late 2027) — notably, SJ recently confirmed that its steel capacity is already sold out through 2026–2027 with

customer conversations extending to 2030, entirely in line with Valmont's messaging on demand durability. More broadly, Valmont

also highlighted that 70% of the US grid is over 25 years old, 33,000 wildfires YTD spanning Canada and the US, and multiple

speakers emphasizing a demand runway extending well past 2030 — all of which maps closely to the narrative SJ management

laid out at their own November 2025 Investor Day, effectively providing third-party confirmation that the market backdrop