Wajax (WJX) Q2 2026 earnings summary

Executive summary

• Achieved improved margins and strong operating cash flow despite a 5.7% year-over-year revenue decline to $515.7 million, mainly due to lower equipment volumes and no large mining shovel delivery this quarter.

• CEO completed a nationwide review, reinforcing confidence in the business and its growth opportunities.

• Strategic priorities include commercial execution, sales force investment, operational excellence, integration of industrial parts and ERS businesses, and talent development.

• Launched a Strategy Working Group of 18 senior leaders to shape 2027 priorities and investment decisions.

• Product support and engineered repair services (ERS) revenue grew 6.9% and 2.9% year-over-year, respectively.

Financial highlights

• Q2 2026 revenue was $515.7 million, down 5.7% year-over-year, mainly due to lower equipment volumes.

• Gross profit margin rose to 20.9%, up 180 basis points year-over-year, driven by margin initiatives and sales mix.

• Adjusted EBITDA margin improved to 8.9% from 8.2% year-over-year; adjusted EBITDA was $45.9 million, up 2.6%.

• Adjusted net earnings per share increased 9.7% to $0.84.

• Q2 operating cash flow was $36.2 million, down from $68.3 million last year, mainly due to lower inventory reduction.

Outlook and guidance

• Margins, cash flow, and balance sheet remain strong despite lower equipment sales.

• Solid demand expected in mining and energy sectors, with two large mining shovels scheduled for delivery in the next two quarters.

• Market conditions in other sectors remain mixed amid macroeconomic uncertainty.

• Continued focus on cost control, margin improvement, and disciplined capital allocation to support long-term value.

• Strategic planning underway to support profitable growth and competitive positioning for 2027 and beyond.