Wajax (WJX) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 2025 was $483.1 million, up 0.4% year-over-year, driven by higher mining equipment sales and strong Industrial Parts and ERS in Central Canada.

• Gross profit margin improved to 20.8%, up 160 basis points year-over-year, reflecting successful margin improvement initiatives.

• Adjusted EBITDA increased 19.7% to $44.8 million, with margin rising to 9.3%.

• Adjusted basic EPS reached $0.75, up 68.6% year-over-year.

• CEO succession process announced, with transition expected in Q1 2026.

Financial highlights

• Adjusted EBIT rose 32.3% to $28.6 million; adjusted EBITDA increased 19.7% to $44.8 million year-over-year.

• Gross profit margin improved to 20.8%, up from 19.1% in Q2 2025 and 17.1% in Q4 2024.

• Cash flow from operations was $18.5 million, reversing a cash use of $36.6 million in Q3 2024.

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

• Dividend of $0.35 per share declared for Q4 2025.

Outlook and guidance

• Strong customer demand expected in mining and energy sectors, supported by robust equipment backlog.

• Macroeconomic softness and Canada-U.S. trade/tariff uncertainty continue to challenge broader end markets.

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

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

• Focus remains on six strategic priorities, including people-first culture, business growth, and ERP rollout.