Wajax Reports C$477.8 Million in Revenue as Operating Earnings Fall 31%
Key Facts
Wajax reported third-quarter 2026 results on November 2, posting revenue of C$477.8 million, down 1.1% from the same period in 2025. The company said the decline mainly reflected the delivery of a large mining shovel in the year-ago quarter, with no comparable delivery in the current quarter. Earnings before finance costs and income taxes fell to C$20.4 million from C$29.5 million, a decline of 31%. This coincided with lower sales volumes and margins in some activities, as well as restructuring costs. TipRanks showed that earnings per share missed expectations, while the available data does not establish that revenue missed analysts’ expectations.
Profitability measures declined alongside revenue: gross profit margin was 20.1%, compared with 20.8% in the same period in 2025, a decrease of 70 basis points. Wajax attributed this to lower margins in product support, industrial parts and engineered repair services, partly offset by higher margins on equipment sales. Adjusted EBITDA margin also fell to 8.1% from 9.3%, or 120 basis points. The company said the decline in this margin reflected lower sales volume and gross profit margins. The results show that margin pressure coincided with uneven performance across activities, rather than a single trend across all business lines.
Wajax’s segments posted mixed results during the quarter. Product support revenue rose 6.3% to C$130.6 million, while engineered repair services revenue increased 5.3% to C$85.1 million. By contrast, equipment sales fell 4%, and industrial parts revenue declined 6.7%. The divergence also appeared geographically: revenue rose 5.5% in Eastern Canada to C$191.5 million, while it fell 12% in Central Canada to C$80.4 million. In Western Canada, revenue declined 2.1% to C$205.9 million.
As part of a periodic review of its cost structure, the company reduced its workforce during the quarter. It recorded C$4.1 million in restructuring costs and related expenses. These costs, together with lower sales volume and margins in some activities, contributed to the decline in earnings before finance costs and income taxes. This places restructuring expenses alongside the operating changes the company cited in explaining the earnings decline. Wajax did not identify broad pressure across the industrial sector and described market conditions as mixed.
On liquidity, Wajax used C$23.1 million in cash from operating activities in the third quarter, compared with generating C$18.5 million in the year-ago quarter. For the nine months ended September 30, 2026, operating cash flow was C$59.9 million, compared with C$112.5 million a year earlier. Meanwhile, backlog stood at C$598.6 million at the end of September, up 18.2% year over year and 9.5% from the end of June. The backlog included two large mining shovels scheduled for delivery in the fourth quarter of 2026. The figures combine a decline in operating cash flow with an increase in contracted work.
Wajax management said market conditions are expected to remain mixed in some end markets and regions, with customer demand and project timing continuing to fluctuate. It added that macroeconomic uncertainty continues to affect customer confidence and investment decisions. In a financing move, the company extended the maturity of its C$500 million credit facility, effective October 22, 2026, from October 24, 2029, to October 22, 2031, without changing the facility limit or interest terms. It also declared a cash dividend of C$0.35 per share for the fourth quarter, payable to shareholders of record on December 15, 2026, with payment on January 5, 2027. The company invited investors to follow a live webcast of its third-quarter earnings call on November 3, 2026, at 2:00 p.m. Eastern time, with a replay to be made available later.