Canada's Wajax Q1 revenue falls 9.5%, misses estimates, margin improves

Wajax

04/05/2026 22:52

Overview

Canada industrial distributor's Q1 revenue fell 9.5% yr/yr, missing analyst expectations

Adjusted EPS for Q1 slipped to C$0.67 from C$0.69 yr/yr

Gross profit margin improved to 20.6% from 19.1% on margin initiatives and sales mix

Outlook

Wajax sees solid customer demand in mining and energy sectors

Company says market conditions in other sectors remain mixed, with macroeconomic softness and tariff uncertainty

Wajax continues to prioritize margin improvement and cost control to manage market variability

Result Drivers

LOWER EQUIPMENT SALES - Revenue decline driven by lower equipment volumes, including fewer large mining shovel deliveries

MARGIN IMPROVEMENT - Gross profit margin rose due to higher margins on industrial parts and ERS sales, and a lower proportion of equipment sales

COST CONTROL - Selling and administrative expenses decreased, reflecting ongoing discipline in cost control and operational efficiency

Company press release: ID:nCNWQLPbMa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
C$502.10 mln
C$531.10 mln (4 Analysts)
Q1 Adjusted EPS
C$0.67
Q1 EPS
C$0.82
Q1 Adjusted Net Income
C$14.60 mln
Q1 Gross Margin
20.60%
Q1 EBIT
C$29.30 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the heavy machinery & vehicles peer group is "buy."

Wall Street's median 12-month price target for Wajax Corp is C$36.00, about 4.9% above its May 1 closing price of C$34.31

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)