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Wajax (WJX) investor relations material
Wajax Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q4 2025 revenue was CAD 560 million, down 1% year-over-year, while full-year revenue rose 2.3% to CAD 2.145 billion; adjusted EPS doubled to CAD 0.71 in Q4 and increased 19.2% to CAD 2.90 for the year.
Gross profit margin grew 100 bps to 18% in Q4, with higher earnings and improved leverage, driven by inventory optimization and cost discipline.
Cash flow from operating activities for 2025 was CAD 194 million, up 158% year-over-year, with Q4 cash flow at CAD 81.5 million.
Backlog at year-end was CAD 516.6 million, up 2% sequentially, supported by a major naval diesel generator subcontract.
CEO transition announced, with George McClean appointed as new President and CEO effective March 2026.
Financial highlights
Q4 gross profit margin increased 100 bps to 18% year-over-year, driven by higher margins in industrial parts, product support, and equipment.
Adjusted EBITDA for Q4 was CAD 44 million, up 25.2% year-over-year; adjusted EBITDA margin improved to 7.9% from 6.2%.
Adjusted net earnings per share for Q4 were CAD 0.71, up 104.1% year-over-year; full-year adjusted EPS was CAD 2.90, up 19.2%.
Selling and administrative expenses as a percentage of revenue decreased to 13.3% in Q4.
Inventory reduced by CAD 126.4 million year-over-year, supporting improved cash flow and leverage.
Outlook and guidance
Management will continue to focus on cost control, inventory optimization, and margin improvement in 2026.
Strong customer demand expected in mining and energy sectors, with a solid backlog and improved operating performance entering 2026.
Market conditions in other sectors remain mixed, with macroeconomic softness and trade uncertainty.
SG&A expected to operate at the lower end of the 14%-15.5% range, with 14% as the new normal.
Dividend of $0.35 per share declared for Q1 2026.
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