WAJAX ANNOUNCES 2026 FIRST QUARTER RESULTS

• Wajax Corporation reported Q1 2026 results on May 4, 2026, marking the first full quarter under new President and CEO George McClean.
• Revenue declined 9.5% year-over-year to $502.1 million, primarily driven by lower equipment volumes in Western Canada (-14.0%) and Central Canada (-9.5%).
• Net earnings increased significantly by 35.9% to $17.8 million compared to Q1 2025, despite the revenue contraction.
• Basic Earnings Per Share (EPS) rose to $0.82 from $0.60 in the prior year period.
• Adjusted Basic EPS decreased slightly by 2.4% to $0.67 from $0.69 in Q1 2025.
• Gross profit margin expanded materially by 150 basis points to 20.6%, up from 19.1% in the prior year quarter.
• Adjusted EBITDA margin improved to 8.1%, up 30 basis points year-over-year.
• Operating cash flow generation strengthened significantly, rising to $46.8 million from $25.7 million in Q1 2025.
• Leverage ratio further improved to 1.51x, down from 1.62x at December 31, 2025, and within the target range of 1.5–2.0x.
• Backlog increased slightly to $521.7 million from $516.6 million at year-end, supporting future revenue visibility.
• Inventory levels rose to $593.6 million to support seasonal demand in construction and forestry sectors.
• A dividend of $0.35 per share was declared for Q2 2026, payable July 3, 2026.

• The revenue decline of 9.5% is a negative top-line indicator that suggests continued macroeconomic softness in key sectors like construction and forestry, which aligns with management's previously stated outlook regarding market conditions.
• However, the significant improvement in net earnings (+35.9%) and gross margins (+150 bps) demonstrates successful execution of cost control and margin improvement initiatives under new leadership.
• The slight decline in Adjusted EPS (-2.4%) contrasts with the Net Earnings growth, indicating potential non-recurring items or tax benefits driving the bottom line rather than core operational profitability expansion on a per-share basis.
• Strong operating cash flow ($46.8 million) and reduced leverage (1.51x) are critical positive factors for risk management, confirming financial stability despite volume headwinds.
• The news validates the strategic pivot announced in Q3/Q4 2025 to prioritize margins over top-line growth, making it an expected outcome rather than a surprise market mover.
• Given that revenue misses and margin improvements were anticipated based on prior guidance regarding macro softness and cost control promises, this is categorized as Routine - Positive rather than Material.

• Company: Wajax Corporation is a leading provider of equipment rental, sales, and service solutions across Canada.
• Flagship Projects/Segments: Heavy equipment rental (mining, construction), industrial parts distribution, and Equipment Rental Services (ERS).
• Development Status: The company is currently in an execution phase focused on margin improvement and inventory optimization following a period of high inventory levels in 2024.
• Strategic Focus: Transitioning from volume growth to profitability and cash flow generation under new leadership.