Wajax (WJX) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 2025 was $483.1 million (CAD 483.1 million), up 0.4% year-over-year, driven by higher mining equipment sales, especially a large mining shovel delivery, and increased industrial parts and ERS sales, partially offset by lower construction and forestry sales in some regions.

• Gross profit margin rose to 20.8%, up 160 basis points year-over-year, reflecting successful margin improvement initiatives in product support, Industrial Parts, and ERS.

• Adjusted EBITDA increased 19.7% to $44.8 million, with margin rising to 9.3% from 7.8% in Q1 2025.

• Adjusted basic EPS was $0.75, up 68.6%–69% year-over-year.

• Safety performance improved, with a TRIF rate of 0.83, down 9% year-over-year and six fewer recordable incidents than Q3 2024.

Financial highlights

• Revenue growth was led by Western and Central Canada, with Western up 0.3% and Central up 3.3%; Eastern Canada saw a 0.7% decline.

• Equipment sales were $131 million, down 0.3% year-over-year; product support sales were $123 million, down 0.1%.

• Industrial Parts sales were flat at $136 million; ERS sales rose 3% to $85 million.

• Heavy Equipment revenue was $265.9 million, flat year-over-year; mining revenue up $16.5 million, construction/forestry down $8.6 million.

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

Outlook and guidance

• Management expects continued strong demand in mining and energy, supported by robust equipment backlog, but notes ongoing macroeconomic softness and cautious customer spending in other sectors.

• Four large mining shovels remain in backlog, with deliveries scheduled through 2027.

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

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

• Strategic priorities include people-first culture, business growth, Hitachi partnership, acquisitions, cost/process improvements, and ERP rollout.