Canada-based heavy machinery and industrial parts distributor Wajax reported its 2025 second quarter financial results on Aug. 7, attributing its continued year-over-year revenue and margin decline to market pressures related to U.S.-Canada trade relations.

“Looking ahead, business and economic uncertainty, particularly in relation to Canada-U.S. trade relations, remains a significant headwind,” Wajax President and CEO Iggy Domagalski said in a earnings release. “While tariffs have had a minimal direct impact on our business, they have affected some of our customers more significantly. We continue to closely monitor changing tariff policies and are proactively taking steps to ensure any direct effects on our business remain limited.”

Mississauga, Ontario-based Wajax’s 2Q revenue decreased 3.7% to $395.54 million USD compared to the same quarter last year. All segments revenue, other than in equipment rentals, decreased. 

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Wajax Revenue by Segment

• Equipment sales – $127.79 million USD, a 2.1% decrease year-over-year
• Product support – $96.48 million USD, a 7.9% decrease year-over-year
• Industrial parts – $102.15 million USD, a 4.1% decrease year-over-year
• Engineered repair services (ERS) – $60.77 million USD, a 1.1% decrease year-over-year
• Equipment rental – $8.54 million USD, a 8.4% increase year-over-year

Meanwhile, 2Q25 gross margin of 19.1% decreased 180 basis points year-over-year.

Mississauga, Ontario-based Wajax’s adjusted net earnings of $12.07 million USD were down 27.2% from a year earlier. Adjusted EBITDA of $32.30 million USD was down 18.3% year-over-year, while EBITDA margin of 8.2% was up 9.6%.

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“Overall profitability continues to improve, with adjusted earnings per share, adjusted EBIT and adjusted EBITDA improving compared to both the first quarter of 2025 and the fourth quarter of 2024,” Domagalski said.

Company officials added that the company continues to see “strong customer demand in the mining and energy sectors, with the former supported by robust equipment backlog.”

“The broader end market environment remains challenging, with macroeconomic softness and ongoing uncertainty related to Canada-U.S. tariff dynamics,” the company noted in its financial report. “In this environment, management remains sharply focused on optimizing inventory, managing costs and improving margins.”

In June, Wajax appointed a new Chief Operating Officer in Michael Hachey.