TSX Symbol: WJX
TORONTO, November 3, 2025 /CNW/ - Wajax Corporation ("Wajax" or the "Corporation") today announced its 2025 third quarter results. All monetary amounts are in Canadian dollars unless otherwise noted.
Selected Highlights for the Third Quarter
Revenue of $483.1 million and adjusted basic earnings per share of $0.75, up from $481.0 million and $0.44, respectively, versus the third quarter of 2024;(1)
Gross profit margin of 20.8% increased 160 basis points ("bps") from 19.2% in the third quarter of 2024, 170 bps from 19.1% in the second quarter of 2025 and 370 bps from 17.1% in the fourth quarter of 2024;(1)
Selling and administrative expenses in the third quarter of 2025 remained relatively flat versus the third quarter of 2024 and decreased $2.6 million compared with the second quarter of 2025;(1)
Inventory of $605.7 million increased slightly from $602.5 million at June 30, 2025, and was down $144.4 million from its peak level in March 2024;
Cash flow generated from operations of $18.5 million compared to cash used of $36.6 million in the third quarter of 2024; and
Leverage ratio improved to 2.28 times, from 2.35 times at June 30, 2025, and 2.61 times at December 31, 2024.(1)
"Wajax delivered steady performance in the third quarter of 2025, reflecting management's efforts to drive margin improvement, maintain disciplined cost control and sustain focus on inventory optimization," said Iggy Domagalski, President and Chief Executive Officer. "Inventory has decreased $144.4 million from its peak in March 2024, resulting in an improved leverage ratio of 2.28 times. Management continues to execute initiatives aimed at right-sizing inventory, streamlining costs and enhancing margins."(1)
Mr. Domagalski continued, "Our gross profit margin of 20.8% improved 170 basis points versus the second quarter of 2025 and 370 basis points from 17.1% in the fourth quarter of 2024, reflecting the progress of our margin improvement initiatives. Overall profitability metrics continue to improve, with adjusted EBIT margin and adjusted EBITDA margin increasing sequentially from the first and second quarters of 2025. Looking ahead, business and economic conditions, particularly those tied to Canada-U.S. trade relations, remain uncertain. While tariffs have had only a minimal direct impact on our business, they have affected some of our customers more significantly. We continue to closely monitor evolving tariff policies and are proactively taking steps to ensure any direct effects on our business remain limited."(1)
(dollars in millions, except per share data)
Three Months EndedSeptember 30
Nine Months EndedSeptember 30
2025
2024
change
2025
2024
change
CONSOLIDATED RESULTS
Revenue
$ 483.1
$ 481.0
0.4 %
$ 1,585.3
$ 1,531.7
3.5 %
Equipment sales
$ 131.3
$ 131.7
(0.3) %
$ 478.9
$ 410.2
16.8 %
Product support
$ 122.9
$ 123.1
(0.1) %
$ 402.8
$ 402.3
0.1 %
Industrial parts
$ 136.4
$ 136.4
— %
$ 422.2
$ 438.4
(3.7) %
Engineered repair services (ERS)
$ 80.8
$ 78.1
3.5 %
$ 246.5
$ 247.4
(0.4) %
Equipment rental
$ 11.7
$ 11.8
(0.8) %
$ 34.9
$ 33.4
4.5 %
Net earnings
$ 16.7
$ 6.4
161.4 %
$ 45.3
$ 41.8
8.6 %
Basic earnings per share(2)
$ 0.77
$ 0.29
161.2 %
$ 2.08
$ 1.92
8.2 %
Adjusted net earnings(1)(3)
$ 16.2
$ 9.6
68.8 %
$ 47.9
$ 45.4
5.4 %
Adjusted basic earnings per share(1)(2)(3)
$ 0.75
$ 0.44
68.6 %
$ 2.20
$ 2.09
5.1 %
Adjusted EBIT(1)
$ 28.6
$ 21.6
32.3 %
$ 86.0
$ 86.5
(0.6) %
Adjusted EBITDA(1)
$ 44.8
$ 37.4
19.7 %
$ 132.7
$ 132.8
(0.1) %
Adjusted EBIT margin(1)
5.9 %
4.5 %
140 bps
5.4 %
5.6 %
(20) bps
Adjusted EBITDA margin(1)
9.3 %
7.8 %
150 bps
8.4 %
8.7 %
(30) bps
Cash generated from (used in) operating activities
$ 18.5
$ (36.6)
$ 55.1
$ 112.5
$ (6.2)
$ 118.7
Outlook
Looking ahead to the balance of 2025, Wajax continues to see strong customer demand in the mining and energy sectors, with the former supported by a robust equipment backlog. The broader end-market environment remains challenging, with macroeconomic softness and ongoing uncertainty related to Canada-U.S. tariff dynamics.
On October 15, 2025, Wajax announced that its Board of Directors and Mr. Domagalski have jointly agreed to initiate a CEO succession process. As part of this planned transition, Mr. Domagalski will continue to serve as President and CEO and as a director of Wajax until the conclusion of the process, ensuring continuity and a seamless handover of responsibilities to his successor. Completion of the process is expected in the first quarter of 2026. During this period, management will remain sharply focused on Wajax's six strategic priorities and key operational areas: inventory optimization, cost management and margin improvement.
Management believes that continued execution of these priorities and key areas of focus, supported by prudent capital allocation and a strong balance sheet, will drive sustainable value creation over the long term. Wajax remains well-positioned to benefit from its diverse market exposure, disciplined growth strategy and focus on operational excellence.
Dividend
The Corporation has declared a dividend of $0.35 per share for the fourth quarter of 2025, payable on January 6, 2026, to shareholders of record on December 15, 2025.
Third Quarter Highlights
Revenue in the third quarter of 2025 increased $2.1 million, or 0.4%, to $483.1 million, from $481.0 million in the third quarter of 2024. Regionally:
Revenue in western Canada of $210.3 million increased 0.3% from the same period in the prior year due primarily to higher mining equipment sales, including the delivery of a large mining shovel in the third quarter of 2025 with no such delivery in the third quarter of the prior year. This increase was partially offset by lower ERS revenue and reduced equipment sales in the construction and forestry, and material handling categories.
Revenue in central Canada of $91.4 million increased 3.3% from the same period in the prior year due primarily to stronger industrial parts and ERS revenue, and higher equipment sales in the construction and forestry, and power systems categories. These increases were partially offset by lower material handling equipment sales.
Revenue in eastern Canada of $181.5 million decreased 0.7% from the same period in the prior year due primarily to lower equipment sales in the construction and forestry category, and reduced industrial parts sales. These decreases were partially offset by higher material handling equipment sales and ERS revenue.
Gross profit margin of 20.8% in the third quarter of 2025 increased 160 bps compared with gross profit margin of 19.2% in the same period of 2024.(1) The increase in margin was driven primarily by higher margins realized on product support, industrial parts and ERS sales, reflecting management's focus on margin improvement initiatives in these areas of the business. These increases were partially offset by reduced equipment margins due to competitive market dynamics. Gross profit margin increased by 170 bps from 19.1% in the second quarter of 2025 and increased by 370 bps from 17.1% in the fourth quarter of 2024.(1)
Selling and administrative expenses as a percentage of revenue remained flat at 14.7% in both the third quarter of 2025 and the same period of 2024.(1) Selling and administrative expenses in the third quarter of 2025 decreased $0.1 million compared with the third quarter of 2024 and decreased $2.6 million compared with the second quarter of 2025, driven by ongoing discipline in cost control and operational efficiency.
EBIT of $29.5 million in the third quarter of 2025 increased $8.1 million, or 37.8%, from $21.4 million in the same period of 2024. The year-over-year increase in EBIT resulted primarily from higher gross profit margin. Adjusted EBIT increased $7.0 million, or 32.3%, to $28.6 million in the third quarter of 2025 from $21.6 million in the third quarter of 2024, and adjusted EBIT margin increased to 5.9% in the third quarter of 2025 from 4.5% in the same quarter of 2024.(1) Adjusted EBIT margin of 5.9% in the third quarter of 2025 improved from 5.4% in the second quarter of 2025 and 3.4% in the fourth quarter of 2024.(1)
Finance costs of $6.8 million in the third quarter of 2025 decreased $6.2 million compared with the same quarter last year. Excluding the unrealized loss on interest rate swaps of $0.3 million in the quarter and the unrealized loss of $4.2 million in the same period of the prior year, finance costs decreased $2.3 million compared with the same quarter of 2024 due primarily to lower interest rates and lower average borrowings when considering both Wajax's bank credit facility and any outstanding debentures combined. Wajax repaid its senior unsecured debentures on January 15, 2025. See the Bank and Other Credit Facilities and Debentures section for further details on the repayment of the debentures.
The Corporation generated net earnings of $16.7 million, or $0.77 per share, in the third quarter of 2025 versus $6.4 million, or $0.29 per share, in the same period of 2024. The Corporation generated adjusted net earnings of $16.2 million, or $0.75 per share, in the third quarter of 2025 versus $9.6 million, or $0.44 per share, in the ...
