Canada's Wajax Q2 revenue misses estimates

Wajax

07/08/2025 22:22

Overview

Wajax Q2 revenue of CAD 547.1 mln missed analyst expectations

Adjusted EPS for Q2 was CAD 0.77, down from CAD 1.06 last year

Company improved cash flow and leverage ratio through inventory optimization

Outlook

Wajax expects strong demand in mining and energy sectors in H2 2025

Company sees macroeconomic softness and tariff uncertainty as challenges

Result Drivers

INVENTORY OPTIMIZATION - Co attributes improved cash flow and leverage ratio to inventory optimization

COST DISCIPLINE - Strong cost discipline helped reduce selling and administrative expenses as a percentage of revenue

MARKET PRESSURES - Revenue and gross profit margin impacted by increased market pressures, per CEO Iggy Domagalski

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
C$547.10 mln
C$578.30 mln (4 Analysts)
Q2 Adjusted EPS
C$0.77
Q2 EPS
C$0.71
Q2 Adjusted Net Income
C$16.70 mln
Q2 Gross Margin
19.1%
Q2 EBIT
C$27.10 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "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$23.50, about 1.5% above its August 7 closing price of C$23.14

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nCNWwsY1Fa

(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.)