WAJAX ANNOUNCES 2025 FOURTH QUARTER AND ANNUAL RESULTS

Executive Summary

• Wajax reported FY 2025 revenue of C$2.145 billion (+2.3% YoY) and adjusted basic EPS of $2.90 (+19.2% YoY).
• Leverage improved to 1.62×, back within the target range of 1.5‑2.0×, driven by inventory reduction and strong cash generation (C$194 million FY).
• The company declared a Q1 2026 dividend of $0.35 per share and announced a CEO transition effective March 3 2026.

Key Details

• Revenue: Q4 2025 C$560.0 M (‑1.0% YoY); FY 2025 C$2,145.3 M (+2.3%).
• Adjusted Basic EPS: Q4 2025 $0.71 (+104.1% YoY); FY 2025 $2.90 (+19.2%).
• Gross Profit Margin: Q4 2025 18.0% (+100 bps YoY); FY 2025 19.2% (‑50 bps YoY).
• Selling & Admin Expenses: Down C$6.4 M in Q4 and C$14.7 M for the year versus 2024.
• Inventory: End‑FY 2025 $547.6 M, down C$58.1 M YoY; inventory turn improvement contributed to cash flow.
• Cash from Operations: Q4 2025 C$81.5 M (≈ flat YoY); FY 2025 C$194.0 M (+57%).
• Leverage Ratio: 1.62× at Dec 31 2025 vs. 2.61× at Dec 31 2024; back within target range.
• Backlog: $516.6 M at year‑end, up C$10.1 M YoY; includes two large mining shovels and a C$114 M RCD subcontract with Irving Shipbuilding for Canadian Navy diesel generators.
• Financing: Amended $500 M senior secured bank credit facility (maturity extended to Oct 24 2029, no change to limit).
• Capital Actions: Repayment of senior unsecured debentures on Jan 15 2025; no outstanding defined‑benefit pension obligations after settlements in early 2026.
• Dividends: Declared Q1 2026 dividend $0.35 per share, payable Apr 2 2026 to shareholders of record Mar 16 2026.
• Management Changes: Andre Dube resigned as SVP‑Sales & Operations (Feb 6 2026); George J. McClean appointed President & CEO effective Mar 3 2026.
• Outlook 2026: Management expects continued focus on cost control, inventory optimization, margin improvement, and prudent capital allocation; anticipates strong demand in mining and energy sectors with a backlog of two large mining shovels over the next five quarters.

Notable Quotes

“Inventory has decreased by $202.7 million from its peak in March 2024, significantly improving cash flow … returning us to our target leverage range.” – Iggy Domagalski, President & CEO
“We delivered solid earnings growth in 2025… We remain focused on margin improvement initiatives to strengthen our margin profile.” – Iggy Domagalski, President & CEO

All monetary figures are in Canadian dollars unless otherwise noted.