Wajax Corporation

Wajax reported Q2 2026 revenue of $515.7 million, down $31.5 million or 5.7% year over year. Gross profit margin was 20.9%, up 180 basis points from last year, and adjusted EBITDA margin was 8.9% versus 8.2% a year ago and 8.1% in Q1 2026. Adjusted EBITDA was $45.9 million, up $1.2 million or 2.6%, and adjusted net earnings were $0.84 per share, up $0.07 or 9.7% year over year. Cash flow from operating activities was $36.2 million versus $68.3 million last year, leverage improved to 1.3x from 1.51x in Q1, backlog was $546.6 million, and available credit capacity was $297.8 million. Management did not provide full-year revenue or EPS guidance, but said second-half conditions are mixed, with improving sentiment in some end markets and continued focus on margins, working capital, and disciplined capital allocation.

George McClean said he is increasingly confident after his first five months as CEO and is moving the company from a listening phase into planning for growth. He emphasized building a more resilient, higher-margin business through better execution, leaner operations, stronger technician capability, and a more effective go-to-market model. He also highlighted Hitachi as a long-term growth driver and said the company’s balance sheet gives it flexibility to rebuild the acquisition pipeline when timing is right.

Tania Casadinho focused on the quarter’s financial improvement: backlog increased to $546.6 million, inventory fell $3.7 million sequentially and $12.3 million year over year, and operating cash flow was $36.2 million. She noted leverage improved to 1.3x, available credit capacity was $297.8 million, and working capital efficiency improved to 24.3% from 24.6% in Q1. She also said the board approved a third-quarter dividend of $0.35 per share payable on October 2, 2026.

Analysts pressed management on why mining equipment sales lagged despite a healthy mining backdrop, and George replied that demand remains strong, project discussions are active, and period-to-period comparisons are distorted by timing and the prior-year large shovel delivery. Questions also focused on whether ERS and product support momentum can continue; George said both are strong and should remain resilient, supported by maintenance spending and technicians. On new equipment, Tania said pricing is competitive and customers are taking longer to decide, while George acknowledged the company needs better sales force effectiveness, role clarity, and more proactive pipeline management.