In the first quarter of the year, Wajax Corp. reported a slight increase in sales within its industrial parts business. However, the company saw a decrease in both revenue and earnings due to significant declines in equipment sales. The Canadian equipment and industrial parts distributor stated that revenue from its industrial parts segment rose to $154.9 million Canadian, reflecting a 1% increase compared to the same period last year. This segment continued to be the largest contributor to the company’s overall revenue.
Despite the growth in industrial parts sales, it was not enough to offset falling equipment sales in the construction and forestry industries in eastern and western Canada. Total revenue for the company 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 these market trends and customer behavior, stating that he remains optimistic 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. Wajax officials noted positive developments in gross profit margin and adjusted EBITDA margin in the first quarter, despite these challenges.
Domagalski expressed his focus on monitoring market trends, customer behavior, and executing strategic priorities as Wajax remains ranked no. 32 on ID’s latest Big 50 list of North American distributors based on net income before taxes (EBIT).
