Wajax saw a dip in its third-quarter revenues amid year-over-year declines in its industrial products, equipment sales and equipment rental segments, company officials said.
The Toronto-based company posted $477.8 million Canadian in revenue in the July-September window, a 1.1% decline compared to the same period last year. The company’s engineered repair services business and product support category increased by 5.3% and 6.3% over that span, but those were offset by a 6.7% slide in industrial products, a 4% decline in equipment sales and a 25.9% drop in equipment rental revenues.
Wajax’s net earnings of $12 million Canadian, meanwhile, were down 28.1%, although they were off by 18.9% on an adjusted basis. The company posted a gross margin of 20.1%, which was down 70 basis points, and an adjusted EBITDA margin of 8.1%, which was off by 120 basis points year-over-year.
Wajax President and CEO George McClean said that the results reflected “mixed market conditions and variability in customer demand and project timing,” including the delivery of a large mining shovel in the comparable quarter last year. He noted that its backlog was up 18% year-over-year and that Wajax generated nearly $60 million in cash from its operating activities through the first nine months of the year.
The company said that it expects market conditions to “remain mixed across certain end markets and regions,” and that broader “macroeconomic uncertainty is likely to continue to weigh on customer confidence and investment decisions.”
"As we prepare to enter 2027, our priorities are clear and our focus is on executing our ‘Strategy Roadmap’ and implementing our announced organizational changes,” McClean said in a statement. “This includes discipline on margin performance, costs and working capital, and increasing operating leverage.”
Wajax announced its new roadmap, which will include the appointments of new executives for its industrial and equipment businesses, last month.
Wajax’s industrial operations came in at no. 26 on ID’s newest Big 50 List.
