Q4 2025 Wajax Corp Earnings Call Transcript
Key Points
- Wajax Corp (WJXFF) achieved a gross profit margin growth of 100 basis points to 18% in Q4 2025, driven by higher margins on industrial parts, product support, and equipment revenue.
- Adjusted EBITDA increased by 25.2% to $44 million in Q4 2025, primarily due to higher gross profit margins and lower finance costs.
- The company's leverage ratio improved significantly to 1.62 times from 2.28 times in Q3 2025, aligning with their target range of 1.5 to 2 times.
- Wajax Corp (WJXFF) reduced inventory by $126.4 million year-over-year, reflecting successful inventory optimization initiatives.
- The company secured a significant shipbuilding contract with Irving Shipbuilding Inc., contributing to an increase in Power Systems backlog.
- Revenue decreased by 1% in Q4 2025, primarily due to lower product support sales in Western and Eastern Canada and lower equipment sales across all regions.
- Product support sales declined by 6.4% compared to the previous year, driven by lower Power Systems revenue in Western and Eastern Canada.
- The backlog decreased by $47.8 million year-over-year, mainly due to lower mining backlog and material handling backlog.
- Industrial parts sales decreased by 2.3% year-over-year, primarily due to lower sales in Central Canada.
- Market conditions remain mixed with macroeconomic softness and uncertainty related to Canada-US tariffs and trade dynamics affecting demand visibility.
Thank you for attending Wajax Corporation's 2025 fourth quarter and year-end financial results webcast. On today's webcast will be Mr. Iggy Domagalski, President and Chief Executive Officer; Ms. Tania Casadinho, Chief Financial Officer. Please be advised that this webcast is being recorded.
Please note that this webcast contains forward-looking statements. Actual future results may differ from expected results.
I will now turn the call over to Tania Casadinho.
Thank you, operator. Good afternoon, and thank you for participating in our fourth quarter results call. This afternoon, we will be following a webcast, which includes a summary presentation of Wajax's Q4 2025 financial results.
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 non-GAAP and other financial measures on slide 3. Please turn to slide 4.
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