Canadian industrial products and services giant Wajax on Monday announced that its industrial parts revenue slipped by more than 15% in its last fiscal quarter.
The company posted a 5.6% dip in overall revenue, while its net earnings plummeted by more than 72%. Gross profit margin fell by 300 basis points to 19.2%, while adjusted EBITDA dropped by just more than 25% compared to the previous third quarter.
"Softer than anticipated market conditions, resulting from reduced customer demand, together with increased competitive pressure, contributed to lower product support and industrial parts revenue and margins,” Wajax President and CEO Iggy Domagalski said in a statement.
Industrial parts revenue declined from $116 million in the third quarter of 2023 to nearly $99 million between July and September. The drop was by far the largest among its five reporting segments: product support revenue was also off — by nearly 9% — while its equipment sales, equipment rental and engineered repair services divisions saw year-over-year gains.
Wajax said that it continues to experience “reduced activity” in the industrial segment as well as in the forestry market, while the mining and energy sectors were stronger. Officials said the company has implemented cost-savings measures amid the difficult environment and is “actively pursuing” additional steps.
The company — whose industrial revenue was enough to rank at no. 32 on ID’s 2024 Big 50 — also announced that Chief Financial Officer Stuart Auld would retire effective next March; he will be succeeded by Tania Casadinho, the company’s current vice president and corporate controller.
