Wajax (WJX) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 2025 was $483.1 million, up 0.4% year-over-year, with adjusted basic EPS rising to $0.75 from $0.44.

• Gross profit margin improved to 20.8%, up 160 bps year-over-year and 170 bps sequentially.

• Net earnings increased to $16.7 million from $6.4 million year-over-year; adjusted net earnings were $16.2 million.

• Cash flow from operations was $18.5 million, reversing a cash use of $36.6 million in Q3 2024.

• Leverage ratio improved to 2.28x from 2.35x in Q2 2025 and 2.61x at year-end 2024.

Financial highlights

• Adjusted EBIT rose 32.3% to $28.6 million; adjusted EBITDA increased 19.7% to $44.8 million year-over-year.

• Adjusted EBIT margin was 5.9% (up from 4.5%); adjusted EBITDA margin was 9.3% (up from 7.8%).

• Selling and administrative expenses as a percentage of revenue remained flat at 14.7%.

• Inventory at quarter-end was $605.7 million, slightly up sequentially but down $144.4 million from its March 2024 peak.

• Dividend of $0.35 per share declared for Q4 2025.

Outlook and guidance

• Strong customer demand expected in mining and energy sectors, supported by robust equipment backlog.

• Macroeconomic softness and Canada-U.S. tariff uncertainty continue to challenge the broader market.

• CEO succession process initiated, with transition expected to complete in Q1 2026.

• Management remains focused on inventory optimization, cost management, and margin improvement.