Canadian distribution and equipment giant Wajax Corp. on Thursday reported a 5% decline in its industrial parts sales amid “reduced activity” during the latest fiscal quarter.
The company — whose industrial segment came in at no. 32 on ID’s latest Big 50 list — posted $147.2 million Canadian in industrial parts revenue during the second quarter, down from $154.9 million in the same window of 2023.
Wajax also reported an overall decline in revenue and earnings, although its profit margin rose year-over-year.
Iggy Domagalski, the company’s president and CEO, said in a statement that rebounding equipment sales and improved earnings bolstered the company’s cash flow while curbing its inventory and debt.
“Lower revenue against a strong comparable quarter in 2023 was partially offset by growth in higher margin product support revenue, as well as a solid improvement in gross margin,” Domagalski said.
He added that the company incorporated an additional 57 industrial parts branches into a new ERP system during the quarter, and that the new system now covers 99 locations and approximately 90% of Wajax's annual revenue.
The company said that although its energy and mining end markets continued to show “solid fundamentals,” the industrial and forestry segments saw reduced activity in recent weeks. Officials also reiterated its strategic priorities for the year, including “acquiring industrial parts and ERS businesses.”
Wajax’s overall revenue slipped from 3.1% from $586.2 million Canadian to $568.3 million year-over-year, while net earnings dropped by nearly 29% from $29 million to $20.6 million. Its gross profit margin rose 100 basis points amid better margins in its engineered repair services and product support divisions.
