Wajax Revenue Up 13.5% in Q1

The distributor reported a record-high backlog amid higher orders across most categories.

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Wajax Corp. this week touted stronger revenue numbers, earnings and profit margins in its first-quarter financial report.

The Canadian industrial supplier said revenue increased 13.5%, climbing from $387 million in the first quarter of 2021 to nearly $440 million in the first three months of 2022. Revenue attributed to industrial parts accounted for the largest share of overall revenue, jumping from $104 million to nearly $130 million. Product support, engineered repair services and equipment rental also saw increases, while revenue from equipment sales declined slightly.

Net earnings, meanwhile, increased from $12.5 million to $15.1 year-over-year, and its gross profit margin climbed from 19.6% to 21.3% over that span.

Wajax President and CEO Iggy Domagalski said the company’s leverage ratio decreased to 1.24 times, while its March 31 backlog of $540.1 million set a new record. The company attributed the backlog to higher orders across most categories, particularly construction, forestry and industrial parts.

Wajax officials said they expected continued growth through the remainder of the year amid “sound fundamentals” in key markets, although the COVID-19 pandemic and related supply chain issues would continue to affect operations. The company declared a dividend of $0.25 per share.

“Looking ahead, Wajax believes its strong balance sheet, ability to generate cash flow and abundant growth opportunities will allow its business to grow meaningfully over the long term,” Domagalski said in a statement.

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