Wajax Corp. on Thursday reported a decline in revenue in its latest quarter â including in its industrial parts business â along with a steep drop in earnings.
The Toronto equipment and industrial parts provider disclosed second quarter revenue of $547.1 million Canadian overall, a decline of 3.7% compared to the same quarter last year, while net earnings, at $15.5 million Canadian, were down by 25% over that span.
The companyâs industrial segment accounted for $141.1 million of that total compared to $147.2 million last year â a decline of 4.1% in that business.
Wajax officials said that the companyâs gross margin dropped by 180 basis points to 19.1% year-over-year, while cash flow from operations rose from $35.8 million to $67.4 million. Wajax President and CEO Iggy Domagalski credited âinventory optimization and strong cost disciplineâ for the latter.
Domagalski added that the companyâs adjusted earnings per share, adjusted EBIT and adjusted EBITDA had improved sequentially, but conceded that âincreased market pressuresâ had impacted its overall results.
âLooking ahead, business and economic uncertainty, particularly in relation to Canada-U.S. trade relations, remains a significant headwind,â Domagalski said in a statement. âWhile tariffs have had a minimal direct impact on our business, they have affected some of our customers more significantly.â
He said that the company is closely monitoring shifting tariff policies and is âproactively taking steps to ensure any direct effects on our business remain limited."
Wajaxâs industrial operations ranked at no. 32 on IDâs most recent Big 50.
