Wajax (WJX) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 was CND 547.1 million, down 3.7% year-over-year, 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 declined to 19.1% from 20.9% year-over-year, but improved 200 bps from Q4 2024 and remained flat sequentially.

• Adjusted EBITDA was CND 44.7 million, down 18.3% year-over-year, with margin improvement initiatives offsetting some of the gross margin pressure.

• Adjusted net earnings per share were CND 0.77, a 27.4% decrease year-over-year.

• Cash flow from operations rose to CND 67.4 million, up from CND 35.8 million in Q2 2024, driven by inventory optimization and cost discipline.

Financial highlights

• Revenue decreased by CND 21.2 million year-over-year, with declines in Central and Eastern Canada, but growth in Western Canada.

• Adjusted EBIT fell 25.2% to CND 29.4 million; adjusted EBITDA margin was 8.2%, up from 7.8% in Q1 2025 and 6.2% in Q4 2024.

• Net earnings were CND 15.5 million (CND 0.71 per share), down 25% year-over-year.

• Working capital decreased to CND 530.7 million from CND 576.5 million sequentially, mainly due to lower receivables and inventory.

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

Outlook and guidance

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

• Macroeconomic softness and tariff uncertainty are expected to persist, with a focus on cost management and margin improvement.

• Margin improvement initiatives are expected to continue, though product mix may impact results in the second half of 2025.