Wajax (WJX) Q4 2025 earnings summary

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.