Canadian equipment and industrial distributor Wajax set its third consecutive annual sales record in 2023 after a slight increase in the final quarter of the year.
The company’s earnings, however, tumbled in the fourth quarter amid higher selling and administrative expenses.
Wajax posted $2.1 billion Canadian in full-year revenue, an increase of nearly 10% compared to 2022. Net earnings rose by nearly 12% and by more than 19% on an adjusted basis, while its adjusted EBITDA margin also climbed by 19%.
The company’s industrial parts segment — which ranked at no. 32 on ID’s most recent Big 50 — saw 2023 sales climb by nearly 13% to $605 million Canadian.
In the fourth quarter, however, industrial parts sales slid by 1.4% year-over-year and overall revenue increased by just 0.2% compared to the final quarter of 2022. Net earnings declined by more than 33% in the October-December window, although adjusted net earnings were narrowly in the black and adjusted EBITDA climbed by double-digits.
Company officials said many of the markets it serves have “solid fundamentals” in early 2024, and that elevated commodity prices and sustained capital spending budgets would help offset challenges related to high interest rates, persistent inflation and a tight labor market. Wajax said it anticipates “further demand” in the industrial parts business and long-term growth in its heavy equipment business.
“Our strong financial results and solid balance sheet, coupled with the recently completed $100 million increase in credit limit under our senior secured credit facility, give us the flexibility to continue to invest in future organic growth and acquisitions,” Wajax President and CEO Iggy Domagalski said in a statement.
