Canada's Wajax Q4 adj basic profit doubles YoY

Wajax

03/03/2026 01:00

Overview

Canada industrial products provider's Q4 revenue beat analyst expectations, remaining relatively flat yr/yr

Adjusted basic EPS for Q4 increased 104.1% from the prior year

In 2025, company remained focused on cost discipline and inventory optimization to improve cash flow

Outlook

Wajax sees strong demand in mining and energy sectors for 2026

Company notes mixed market conditions and tariff uncertainties

Wajax aims to enhance efficiency and support sustainable performance

Result Drivers

INVENTORY OPTIMIZATION - Co reduced inventory levels, improving cash flow and reducing leverage

COST DISCIPLINE - Selling and administrative expenses decreased, reflecting focus on cost control

MARGIN IMPROVEMENT - Gross profit margin increased due to higher margins on industrial parts and product support

Company press release: ID:nCNWRqmZWa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
C$560 mln
C$553.08 mln (4 Analysts)
Q4 Adjusted Basic EPS
C$0.71
Q4 EPS
C$0.56
Q4 Adjusted Net Income
C$15.40 mln
Q4 Gross Margin
18%
Q4 EBIT
C$23.30 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$28.50, about 9.8% below its March 2 closing price of C$31.60

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.)