Wajax (WJX) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 was $547.1 million, down 3.7% year-over-year, mainly due to lower equipment, product support, and industrial parts sales, 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 $44.7 million, down 18.3% year-over-year, with margin improvement initiatives offsetting some gross margin pressure.

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

• Cash flow from operating activities rose to $75.9 million, up from $55.0 million in Q2 2024, driven by inventory reduction and cost discipline.

Financial highlights

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

• Gross profit margin fell 180 bps year-over-year, mainly due to lower realized margins on equipment, industrial parts, and ERS.

• Selling and administrative expenses as a percentage of revenue improved to 13.8% from 13.9% year-over-year.

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

• Backlog at quarter-end was $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 Canada-U.S. 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.