In the first quarter of the year, Wajax Corp. reported a slight increase in sales within its industrial parts business, but this was not enough to offset significant declines in equipment sales. The company’s total revenue decreased by 6.5% year-over-year, with net earnings also dropping by 15.8%.
Wajax President and CEO Iggy Domagalski attributed the decline in revenue to falling equipment sales in the construction and forestry industries in eastern and western Canada. Despite these challenges, Domagalski expressed optimism for improving near-term equipment sales with an enhanced backlog and a new financing program. The company also increased its credit limit to provide more flexibility for investing in organic growth and potential acquisitions.
The industrial parts segment of Wajax continued to be the largest contributor to the company’s overall revenue, with revenue rising to $154.9 million Canadian, reflecting a 1% increase compared to the same period last year. This growth was positive news for Wajax officials, who noted positive developments in gross profit margin and adjusted EBITDA margin in the first quarter.
Despite these successes, Wajax remains focused on monitoring market trends, customer behavior, and executing strategic priorities. The company was ranked no. 32 on ID’s latest Big 50 list for its industrial parts business.
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