Wajax Corp. Reports Mixed Sales and Earnings in First Quarter Amidst Equipment Sales Decline in Eastern and Western Canada
In the first quarter of the year, Canadian equipment and industrial parts distributor Wajax Corp. reported a slight increase in sales within its industrial parts business, but significant declines in equipment sales led to a decrease in both revenue and earnings. Despite the growth in industrial parts sales, it was not enough to offset the decline in equipment sales in the construction and forestry industries in eastern and western Canada.
Total revenue for the company decreased by 6.5% year-over-year, with net earnings also dropping by 15.8%. Wajax President and CEO Iggy Domagalski attributed the decline in revenue to falling equipment sales in the construction and forestry industries in eastern and western Canada.
Despite the challenges, Domagalski expressed optimism for improving near-term equipment sales with an enhanced backlog and a new financing program. The company also increased its credit limit to provide more flexibility for investing in organic growth and potential acquisitions. Wajax officials noted positive developments in gross profit margin and adjusted EBITDA margin in the first quarter.
Wajax remains focused on monitoring market trends, customer behavior, and executing strategic priorities. The industrial parts business of Wajax was ranked no. 32 on ID’s latest Big 50 list.
