Overview

* Wajax Q3 2025 revenue misses analyst expectations, despite a slight increase from 2024

* Adjusted EPS for Q3 2025 increased to C$0.75, reflecting margin improvement initiatives

* Company announced on Oct 15, CEO succession process, with completion expected in Q1 2026

Outlook

* In 2025, Wajax ( WJXFF ) expects strong demand in mining and energy sectors, supported by equipment backlog

* Company cites macroeconomic softness and Canada-U.S. trade uncertainty as challenges

* Wajax ( WJXFF ) focuses on inventory optimization, cost management, and margin improvement

Result Drivers

* MARGIN IMPROVEMENT - Gross profit margin increased due to higher margins in product support, industrial parts, and ERS sales

* COST CONTROL - Selling and administrative expenses remained flat as a percentage of revenue due to disciplined cost management

* INVENTORY OPTIMIZATION - Inventory reduction contributed to improved leverage ratio

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss C$483.1 C$512.4

Revenue mln mln (4

Analysts

)

Q3 C$0.75

Adjusted

EPS

Q3 EPS C$0.77

Q3 C$16.2

Adjusted mln

Net

Income

Q3 Gross 20.80%

Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the heavy machinery & vehicles peer group is "buy."

* Wall Street's median 12-month price target for Wajax Corp ( WJXFF ) is C$25.50, about 2.5% above its October 31 closing price of C$24.87

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)