Canada's Wajax Q3 revenue misses estimates

Wajax

03/11/2025 22:26

Overview

Wajax Q3 2025 revenue misses analyst expectations, despite a slight increase from 2024

Adjusted EPS for Q3 2025 increased to C$0.75, reflecting margin improvement initiatives

Company announced on Oct 15, CEO succession process, with completion expected in Q1 2026

Outlook

In 2025, Wajax expects strong demand in mining and energy sectors, supported by equipment backlog

Company cites macroeconomic softness and Canada-U.S. trade uncertainty as challenges

Wajax focuses on inventory optimization, cost management, and margin improvement

Result Drivers

MARGIN IMPROVEMENT - Gross profit margin increased due to higher margins in product support, industrial parts, and ERS sales

COST CONTROL - Selling and administrative expenses remained flat as a percentage of revenue due to disciplined cost management

INVENTORY OPTIMIZATION - Inventory reduction contributed to improved leverage ratio

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
C$483.1 mln
C$512.4 mln (4 Analysts)
Q3 Adjusted EPS
C$0.75
Q3 EPS
C$0.77
Q3 Adjusted Net Income
C$16.2 mln
Q3 Gross Margin
20.80%


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$25.50, about 2.5% above its October 31 closing price of C$24.87

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

Press Release: ID:nCNWJxKD7a

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