WAJAX ANNOUNCES 2025 THIRD QUARTER RESULTS

Executive Summary

• Wajax reported Q3 2025 revenue of C$483.1 M (up 0.4% YoY) and adjusted basic EPS of $0.75, a 68.6% increase year‑over‑year.
• Gross profit margin improved to 20.8%, up 160 bps YoY, driven by higher margins on product support, industrial parts and ERS sales.
• Cash flow from operations turned positive at C$18.5 M (vs a cash outflow of C$36.6 M in Q3 2024) and leverage improved to 2.28×.

Key Details

• Revenue: C$483.1 M (Q3 2025) vs C$481.0 M (Q3 2024).
• Adjusted Basic EPS: $0.75 vs $0.44 in Q3 2024 (+68.6%).
• Gross Profit Margin: 20.8% (up 160 bps YoY, up 170 bps QoQ).
• EBIT: C$29.5 M (↑ 37.8% YoY); Adjusted EBIT $28.6 M (↑ 32.3%).
• Adjusted EBITDA: C$44.8 M (↑ 19.7% YoY); Adjusted EBITDA margin 9.3% (up 150 bps YoY).
• Cash Flow from Operations: +C$18.5 M vs –C$36.6 M in Q3 2024; cash generation increase of C$55.1 M.
• Leverage Ratio: Improved to 2.28× (down from 2.35× at June‑30 2025 and 2.61× at Dec‑31 2024).
• Inventory: $605.7 M (slightly higher QoQ, down C$144.4 M from March 2024 peak).
• Backlog: $506.5 M at Sep‑30 2025, down 3.4% QoQ and 13.9% YoY; includes four large mining shovels.
• Working Capital: $550.2 M (up C$19.5 M QoQ); efficiency improved to 25.4%.
• Dividend: Declared $0.35 per share for Q4 2025, payable Jan 6 2026.
• CEO Succession: Board and CEO Iggy Domagalski initiated a succession process; transition expected Q1 2026.
• Financing Update: Extended senior secured bank credit facility maturity to Oct 24 2029; increased additional interest‑bearing debt limit to $50 M (from $25 M).

Notable Quotes

“Wajax delivered steady performance in the third quarter of 2025, reflecting management's efforts to drive margin improvement, maintain disciplined cost control and sustain focus on inventory optimization.” – Iggy Domagalski, President & CEO

“Our gross profit margin of 20.8% improved 170 basis points versus the second quarter of 2025…margin improvement initiatives are bearing fruit.” – Iggy Domagalski, President & CEO