Canada's Wajax Q2 revenue misses estimates on lower equipment sales

Wajax

06/08/2026 22:24

Overview
Canada industrial distributor's Q2 revenue fell 5.7% yr/yr, missing analyst expectations
Adjusted EPS for Q2 rose 9.7% yr/yr
Gross profit margin improved to 20.9% from 19.1% on margin initiatives and sales mix

Outlook
Wajax sees solid customer demand in mining and energy sectors, supported by strong backlog
Company says market conditions in other sectors remain mixed amid ongoing macroeconomic uncertainty
Wajax to prioritize margin improvement, cost control and prudent capital allocation

Result Drivers
LOWER EQUIPMENT SALES - Revenue declined mainly due to lower equipment volumes, including no large mining shovel delivery as in the prior year
MARGIN INITIATIVES AND SALES MIX - Gross profit margin rose due to margin improvement initiatives and a lower proportion of equipment sales
PRODUCT SUPPORT AND ERS GROWTH - Product support and engineered repair services revenue increased 6.9% and 2.9%, respectively

Company press release: ID:nCNWnXqKla

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
C$515.70 mln
C$550.02 mln (4 Analysts)
Q2 Adjusted EPS
 
C$0.82
 
Q2 EPS
 
C$0.87
 
Q2 Adjusted Net Income
 
C$18.30 mln
 
Q2 Gross Margin
 
20.90%
 
Q2 EBIT
 
C$31.20 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$34.50, about 1% below its August 5 closing price of C$34.86
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads
Aug 5 - Caterpillar dealer Finning's Q2 revenue rises 20%, beats estimates
Aug 6 - Distribution Solutions Q2 revenue rises 11%, beats estimates
Aug 4 - Grainger beats Q2 sales estimates, lifts 2026 outlook

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.)