Wajax Revenue Declines in Fourth Quarter; Increases for Full Year

Canadian distributor Wajax posted $560 million (Canadian) in the fourth quarter of 2025, compared to $565 million in the fourth quarter of 2024, a 1-percent decline. Meanwhile, equipment rental revenue dropped 4.7 percent in the quarter, reporting $11.5 million in Q425 compared to $12.1 million in the same quarter of 2024. Equipment sales decreased 1.2 percent in the quarter, product support revenue dropped 6.4 percent and industrial parts sales dipped 2.3 percent.

For full year 2025, on the other hand, Wajax recorded a 2.3 percent increase, going from $2,097.6 million in 2024 to $2,145.3 million. Rental revenue was up for the full year, improving 2.1 percent from $45.5 in 2024 to $46.5 million for the full year. Equipment sales was $684.7 million for the full year, compared to $618.6 million in 2024, a 10.7-percent hike. Product support revenue declined 1.5 percent and industrial parts revenue slid 3.4 percent.

"Throughout the year, our leadership team remained firmly focused on disciplined cost control, inventory optimization and margin improvement to strengthen profitability, enhance cash flow and reduce leverage," said Iggy Domagalski, president and CEO. "Inventory has decreased by $202.7 million from its peak in March 2024, significantly improving cash flow from operating activities and supporting a meaningful reduction in leverage, returning us to our target leverage range of 1.5 to 2.0 times. These results reflect disciplined execution and a stronger, more resilient balance sheet as we enter 2026.

"We delivered solid earnings growth in 2025, with adjusted basic earnings per share of $0.71 in the fourth quarter and $2.90 for the full year, up 104.1 percent and 19.2 percent, respectively, over the same periods in the prior year. Gross margin improved 100 basis points in the quarter to 18.0 percent, reflecting improved execution, while full-year gross margin of 19.2% was modestly lower compared to prior year due to more competitive market conditions, particularly in the first half of the year compared to the first half of 2024. Despite the year-over-year margin decline, we saw meaningful improvement in product support margins versus 2024, and improved industrial parts and ERS margins in the latter half of 2025 versus the latter half of 2024. We remain focused on margin improvement initiatives to strengthen our margin profile, mitigate ongoing market pressures and drive continued earnings performance."

Meet the New Boss

Subsequent to year-end, Wajax appointed George McClean president and CEO, effective March 3.

In the fourth quarter revenue in western Canada decreased 4.9 percent from the same period in 2024, primarily because of lower construction and forestry sales, partially offset by higher equipment sales in the mining category. Revenue in central Canada decreased 4.4 percent year over year, primarily because of lower equipment sales in the material handling category and lower industrial parts sales, partially offset by higher equipment sales in construction and forestry.

Revenue in eastern Canada increased 6.2 percent because of higher equipment sales in power systems and construction and forestry, partially offset by lower equipment sales in material handling equipment.

Looking ahead, Wajax sees strong customer demand in the mining and energy sectors. Market conditions in other sectors remain mixed across regions with continued macroeconomic softness and uncertainty related to Canada-U.S. tariff and trade dynamics.

Wajax, headquartered in Toronto, is No. 64 on the RER 100.