Canada-based heavy machinery and industrial parts distributor Wajax reported its 2025 first quarter financial results on May 5, showing a decline in profit and margins, despite sales growth.

Wajax posted 1Q net sales of $401.58 million USD, up 15.1% year-over-year. It followed a 4Q24 increase of 4.3%. Meanwhile, 1Q25 gross margin of 19.1% decreased 290 basis points year-over-year.

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Mississauga, Ontario-based Wajax’s adjusted net profit of $9.51 was down from the $10.67 million reported a year earlier. Adjusted EBITDA of $31.3 million was up 6.2% year-over-year, while EBITDA margin of 5.0% was down 5.0% YoY

Wajax Revenue by Segment

• Equipment sales – $124.02 million, a 74.2% increase year-over-year.
• Product support – $106.24 million, a 9.0% increase year-over-year.
• Industrial parts – $105.00 million, a 6.6% decrease year-over-year.
• Engineered repair services (ERS) – $59.22 million, a 3.2% decrease year-over-year.
• Equipment rental – $8.27 million, a 6.3% increase year-over-year.

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“Working capital management and cost controls generated strong first quarter cash flows of $31.4 million [CAD] and a reduction in our leverage ratio,” Wajax President and CEO Iggy Domagalski said in the company’s financial release. “In addition, ongoing inventory reduction initiatives have decreased inventory by $91.5 million [CAD] from peak levels at March 31, 2024. Looking ahead, in addition to advancing our six strategic priorities, management is continuing to execute initiatives to right-size inventory, reduce costs and drive margin improvement.”