Wajax Stock Earnings Reports

Wajax reported modest top-line growth in Q3 2025 with revenue of $483.1 million (up 0.4% YoY) while delivering material margin improvement and stronger profitability. Gross profit margin rose to 20.8% (+160 bps YoY) driven by margin-improvement initiatives in product support, industrial parts and ERS, producing adjusted EBITDA of $44.8 million (up 19.7% YoY) and adjusted EPS of $0.75. Backlog declined to $506.5 million (down sequentially and down YoY), primarily due to the sale and delivery of several large mining shovels; backlog still includes four large shovels to be delivered over the next 6 quarters. Inventory continues to be actively managed and was down significantly from peak levels (inventory down $118.4 million YoY; down $144.4 million from peak Mar 31, 2024). Operating cash flow improved (Q3 operating cash flow of $18.5 million vs. cash used of $36.6 million a year earlier), and leverage improved to 2.28x (still above the 1.5–2.0x target). The company extended its $500 million senior secured facility to Oct 24, 2029, and declared a Q4 dividend of $0.35/share. Management reiterated focus on six strategic priorities with emphasis on inventory optimization, cost control and margin improvement. End-market commentary: mining and energy remain the strongest pockets of demand; construction/forestry and some industrial end markets remain cautious. Management announced a CEO succession process with completion expected Q1 2026; the current CEO will remain in role through the transition. Overall, results show improving profitability and cash generation, ongoing working-capital progress, but leverage remains above target and some end markets remain soft.