Canada-based heavy machinery and industrial parts distributor Wajax reported its 2024 fourth quarter and full-year financial results on March 4, showing an increase in 4Q sales while margins declined.

4Q Results

Wajax posted 4Q net sales of $389.57 million USD, up 4.3% year-over-year. It followed a 3Q24 decline of 5.6%. Meanwhile, 4Q24 gross margin of 17.1% decreased 420 basis points year-over-year.

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Mississauga, Ontario-based Wajax’s 4Q24 adjusted net profit of $5.2 million was down from the $12.3 million reported a year earlier. 4Q adjusted EBITDA of $24.2 million and EBITDA margin of 6.2% were down 25.6% and 28.6% year-over-year, respectively.

Wajax 4Q24 Revenue by Segment

• Equipment sales – $143.46 million, a 31.5% increase year-over-year.
• Product support – $91.42 million, a 0.1% decrease year-over-year.
• Industrial parts – $91.97 million, a 1.7% decrease year-over-year.
• Engineered repair services (ERS) – $54.45 million, a 23.7% decrease year-over-year.
• Equipment rental – $8.33 million, a 3.2% increase year-over-year.

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“Following two years of robust market conditions, 2024 proved challenging as customer demand declined across several key segments and was further impacted by business and economic uncertainty as the year went on,” Wajax President and CEO Iggy Domagalski said in the company’s financial release.

2024 Results

For its full-year, Wajax reported 2024 net sales of $1.4 billion, down 2.6% year-over-year. Gross margin of 19.7% declined 120 bps from 2023. The company said gross margin was impacted by increased market pressures, primarily in the second half of the year as well as sales mix.

Wajax’s adjusted net profit of $36.4 million was down 36.6% year-over-year. Meanwhile, adjusted EBITDA of $115.6 million and EBITDA margin of 8.0% decreased 14.9% and 12.6% year-over-year, respectively.

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Wajax Full-year Revenue by Segment

• Equipment sales – $425.8 million, a 2.6% decrease year-over-year.
• Product support – $368.2 million, a 1.9% increase year-over-year.
• Industrial parts – $393.7 million, a 1.5% decrease year-over-year.
• ERS – $224.7 million, a 5.5% decrease year-over-year.
• Equipment rental – $31.3 million , a 7.9% decrease year-over-year.

Domagalski added: “In response to market conditions, cost saving initiatives implemented during the second half of 2024 helped to reduce selling and administrative expenses in the fourth quarter by $7.4 million compared to the same quarter of 2023. Ongoing inventory reduction initiatives have decreased inventory by $76.3 million from peak levels at March 31, 2024. These and other efforts led to strong fourth quarter cash flows from operating activities of $75.9 million.”

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On Nov. 4, Wajax had previously announced the planned retirement of CFO Stuart Auld. As part of the company’s succession plan, Tania Cadinho would succeed Auld, effective March 4.

The company was No. 4 on MDM’s Top Distributors List for Power Transmission/Bearings, No. 14 for MRO and No. 32 for Industrial Supplies.