Wajax reported a nearly 5% decline in its industrial parts revenue in the first quarter of 2026, but company officials highlighted stronger margins in that segment to start the year.
The Canadian industrial parts and equipment provider — no. 27 on ID’s most recent Big 50 list — reported industrial revenue of $137.6 million Canadian, down 4.9% from the $144.7 million posted in the first quarter of 2025.
The company saw declines in four of its five reporting segments in the quarter; the only increase was reported in engineered repair services. Overall, Wajax posted $502.1 million Canadian in revenue, a 9.5% decline year-over-year, although net earnings jumped by nearly 36% and its adjusted EBITDA margin climbed by 30 basis points.
Company officials also pointed to a “strong” balance sheet and backlog, along with a gross profit margin that rose 150 basis points to 20.6%. The latter increase, the company said, largely reflected higher margins on industrial parts and engineered repair service sales.
“Our first quarter results reflect continued progress against our operational priorities, with improved margins, strong operating cash flow and further reduced leverage, despite lower year-over-year revenue,” George McClean, the company’s new president and CEO, said in a statement. “We maintained a strong balance sheet and delivered meaningful improvements in gross profit margin and working capital efficiency, reflecting the benefits of our ongoing operational focus.”
Wajax officials said that although demand remains “solid” in its energy and mining end markets, its outlook across its remaining sectors remains mixed amid “ongoing macroeconomic softness and uncertainty related to Canada-U.S. tariff and trade dynamics.”
“We continue to prioritize cost control and margin improvement, supported by prudent capital allocation,” McClean said.
Wajax also announced the election of its board of directors last week, headed by Chair A. Jane Craighead.
