LUMBER Depot Limited posted a sharp increase in third-quarter earnings as a surge in demand following Hurricane Melissa boosted sales, while the company pressed ahead with plans to expand its operations.

The Papine-based hardware retailer reported a 10 per cent rise in revenue to $412.75 million for the three months to January — its strongest third-quarter performance to date — as post-hurricane rebuilding activity lifted demand.

Gross profit climbed 23 per cent to $97.19 million, with margins improving to 23.55 per cent from 21.14 per cent, while operating profit jumped 56 per cent to $40.81 million.

“We are pleased that despite the macroeconomic challenges connected to Hurricane Melissa, Lumber Depot continues to trade positively, and to deliver solid results, and — importantly — to maintain excellent service levels and customer endorsements,” Chairman Jeffrey Hall said.

Profit before tax rose 41 per cent to $40.30 million while net profit increased 34 per cent to $35.26 million, despite higher finance costs linked to the acquisition of an adjacent property.

The company acquired property at 17 Gordon Town Road in October for $205 million, financed by Sagicor Bank Jamaica, as it moves to expand capacity.

Hall said the site will support a broader inventory range, improved parking, and an expanded showroom.

“During the year we acquired the property immediately adjacent to our business… [it] will allow for the stocking of a wider range of inventory, reduced congestion, improved parking, and overall enhanced service levels,” he said.

The acquisition has already doubled the company’s property, plant and equipment to $375.28 million over the nine-month period.

Lumber Depot’s total assets rose 30 per cent to $1.22 billion while operating cash flow increased 53 per cent to $145.62 million, lifting cash balances to $288.67 million.

The company also continues to hold a 29.3 per cent stake in Atlantic Hardware & Plumbing Company Limited, with potential valuation gains likely to be reflected in its next audited financial statements.

Lumber Depot reported total liabilities of $346.68 million and shareholders’ equity of $875.76 million at the end of the period. Lumber’s stock price closed Monday at $2.47, which leaves it down 12 per cent in 2026 with a market capitalisation of $1.74 billion.