Canadian industrial parts and equipment giant Wajax saw a sharp jump in its industrial business during the third quarter of the year, the company announced Monday.
The company — whose industrial operations landed at no. 32 on ID’s recent Big 50 — said revenue from industrial parts climbed from $134.7 million Canadian in the third quarter of 2022 to $160.9 million Canadian in the latest reporting period, an increase of 19.4% year-over-year.
Overall, Wajax reported an 8.3% quarterly revenue increase to $509.7 million Canadian, led by its industrial and product support segments. The engineered repair services and equipment rental businesses also saw increases, offsetting a drop in equipment sales.
Net earnings, meanwhile, climbed by more than 30% year-over-year, while its gross margin rose 180 basis points to 22.2%.
Wajax President and CEO Iggy Domagalski said the company maintained its growth initiatives in both industrial parts and repair services, including its acquisition of fellow Canadian companies Polyphase Engineered Controls and Beta Fluid Power and Beta Industrial. Those deals, he said, would bolster its capabilities in custom electrical, hydraulic and pneumatic products in key regions.
The company’s latest results would provide increased flexibility to expand its organic initiatives and pursue additional “acquisition opportunities,” he added.
“Becoming an increasingly valuable partner, with a fully integrated service offering, is critical to gaining market share, driving improved margins and offering a top-notch customer service experience,” Domagalski said in a statement.
The company anticipates “further strong demand” in its industrial business heading into the final quarter of the year, although officials said they continued to monitor challenges linked to high interest rates, inflation, a tight labor market, and a volatile — but improving — supply chain environment.