Wajax Corp. reported stronger third-quarter earnings as improved margins, tighter cost control and steadier demand for mining and energy helped offset a flat top line. The company — one of Canada’s oldest industrial distributors and the Canadian service and distribution partner for several global OEMs with operations extending into U.S. mining, energy, and infrastructure markets — said its results reflect continued progress on inventory reduction and operational discipline.
Revenue for the quarter inched up to C$483.1 million ($343.0 million $US) from C$481.0 million ($341.6 million $US) a year earlier. Net earnings rose sharply to C$16.7 million ($11.9 million $US) from C$6.4 million ($4.5 million $US), an increase of more than 160%, due to stronger gross margin performance and lower financing costs.
Adjusted net earnings also improved, reaching C$16.2 million ($11.5 million $US) from C$9.6 million ($6.8 million $US)
For the first nine months of 2025, revenue grew 3.5% to C$1.585 billion ($1.126 billion $US) from C$1.532 billion ($1.088 billion $US) a year earlier. Net earnings for the period reached C$45.3 million ($32.2 million $US), up from C$41.8 million ($29.7 million $US).
Gross profit margin in the third quarter rose to 20.8%, up from 19.2% a year earlier. The increase was driven by stronger margins in product support, industrial parts and engineered repair services, partially offset by lower equipment margins amid competitive pricing. Costs remained stable, with selling and administrative expenses holding at 14.7% of revenue.
Cash generation improved significantly, with C$18.5 million ($13.1 million $US) in operating cash flow compared with cash used of C$36.6 million ($26.0 million $US) a year earlier. Inventory levels ended the quarter at C$605.7 million ($430.1 million $US), slightly above the second quarter but C$144.4 million ($102.5 million $US) below the peak reached in March 2024. The company’s leverage ratio improved to 2.28x, down from 2.35x in the second quarter and 2.61x at the end of 2024.
President and CEO Iggy Domagalski said the company’s margin gains and cost controls reflect the progress of its operational plans, noting that tariffs and Canada–U.S. trade dynamics continue to create pockets of uncertainty for customers.
Regional performance varied. Western Canada posted modest growth due to mining equipment sales, including the delivery of a large shovel, while Central Canada benefited from stronger industrial parts sales and repair services work. Eastern Canada reported lower construction and forestry equipment revenue but saw some offset from higher material handling and ERS activity.
Segment trends were mixed. Equipment sales and product support were flat year over year in the quarter, while industrial parts revenue remained steady. Engineered repair services rose 3.5%, and rental revenue slipped slightly. On a year-to-date basis, equipment sales rose 17%, while industrial parts and ERS remained softer as customers delayed some discretionary spending.
Backlog ended the quarter at C$506.5 million ($359.7 million $US), down from C$524.3 million ($372.3 million $US) in the second quarter and C$588.1 million ($417.6 million $US) a year earlier. The company said the decline reflected lower material handling orders and the delivery of several large mining shovels over the past year.
Wajax’s operations extend into the U.S. through cross-border equipment supply, OEM partnerships and engineered services for mining, construction, and energy customers. Its long-standing distribution relationship with global manufacturers active in the Americas positions the company as a Canadian link in broader North American supply chains, particularly in mining, industrial power systems, and large-scale infrastructure projects.
The company has also begun a leadership transition. In October, the board and Domagalski agreed to initiate a CEO succession process, with a new chief executive expected to be named in early 2026. Domagalski will remain in his role until the transition is complete.
Don’t miss any content from Distribution Strategy Group. Join our list.
