Q2 2026 Wajax Corp Earnings Call Transcript
Key Points
- Gross profit margin improved by 180 basis points to 20.9%, driven by margin improvement initiatives and favorable sales mix.
- Adjusted EBITDA increased 2.6% year-over-year to $45.9 million, with the margin improving to 8.9% from 8.2%.
- Leverage ratio improved to 1.3 times from 1.51 times in Q1, reflecting strong cash generation and disciplined capital allocation.
- Product support sales grew 6.9% year-over-year, driven by strong mining revenue in Western Canada.
- Backlog increased to $546.6 million, up $24.9 million sequentially, supported by a large mining shovel and higher construction and forestry backlog.
- Revenue decreased 5.7% year-over-year to $515.7 million, primarily due to lower equipment volumes, including no comparable large mining shovel delivery.
- Equipment sales declined 22.3% year-over-year, with softness in construction and forestry and material handling categories.
- Selling and administrative expenses as a percentage of revenue increased to 14.8% from 13.4%, due to the year-over-year decline in revenue.
- Safety performance worsened, with the TRIF rate increasing 40% year-over-year to 1.43.
- Cash flows from operating activities decreased to $36.2 million from $68.3 million in the prior year, due to a smaller inventory reduction.
Thank you for attending RHX Corporation's 2026 Second Quarter Financial Results Webcast. On today's webcast will be Mr. George McLean, President and Chief Executive Officer Ms. Tanya Casadino, Chief Financial Officer.
Please be advised that this webcast is being recorded. Please note that this webcast contains forward-looking statements.
Actual future results will differ from expected results.
I will now turn the call over to Tanya Cassadino.
Thank you, operator. Good afternoon, and thank you for participating in our second quarter results call. This afternoon, we will be following a webcast, which includes a summary presentation of WageAX's Q2 2026 financial results. The presentation can be found on our website under Investor Relations, Events and Presentations. To begin, I would like to draw your attention to our cautionary statement regarding forward-looking information on Slide 2 and the non-GAAP and other financial measures on Slide 3.
Please turn to Slide 4 and at
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