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Wajax (WJX) investor relations material

Wajax Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary8 Aug, 2025

Executive summary

  • Revenue declined 3.7% year-over-year to $547.1M, mainly due to lower equipment sales in construction and forestry, partially offset by higher mining sales in Western Canada, including a large mining shovel delivery.

  • Gross profit margin compressed to 19.1% from 20.9% year-over-year, but improved 200 bps from Q4 2024, reflecting margin improvement initiatives in product support.

  • Adjusted EBITDA fell 18.3% to $44.7M, with margin at 8.2%, up from 6.2% in Q2 2024, driven by cost savings despite lower sales volume.

  • Cash flow from operations rose to $67.4M, up from $35.8M in Q2 2024, driven by significant inventory reduction and cost discipline.

  • Leverage ratio improved to 2.35x from 2.53x in Q1, though still above the 1.5–2x target range.

Financial highlights

  • Revenue: $547.1M, down $21.2M or 3.7% year-over-year.

  • Adjusted EBITDA: $44.7M, down $10M or 18.3% year-over-year.

  • Adjusted EPS: $0.77, down 27.4% or $0.29 year-over-year.

  • Cash flow from operations: $67.4M, up $31.5M year-over-year.

  • Backlog at quarter-end was $524.3M, down 6.6% sequentially and 3.8% year-over-year.

Outlook and guidance

  • Management expects continued strong demand in mining and energy, supported by a robust mining equipment backlog.

  • Broader end markets remain challenging due to macroeconomic softness and tariff uncertainty.

  • Focus remains on inventory optimization, cost management, and margin improvement to drive long-term value.

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Frequently asked questions

Wajax Corporation distributes industrial components and equipment including power systems, material handling products, and heavy machinery. The company serves sectors such as construction, mining, forestry, and oil and gas across Canada. It also provides maintenance and repair services. The company is headquartered in Mississauga, Canada, and its shares are listed on the TSX.

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