Wajax Revenue Jumps 14.7 Percent in Second Quarter
Canadian distributor Wajax posted CDN $586.2 million in second quarter 2023 revenue compared to $511.2 million in the second quarter of 2022, a 14.7-percent increase. Equipment rental revenue totaled $11.4 million in the quarter compared to $9.9 million in the second quarter a year ago, a 16-percent hike. Equipment sales increased 10.6 percent, product support was up 15 percent, industrial parts rose 15.7 percent and engineered repair services climbed 21.9 percent.
Adjusted EBITDA for the second quarter was $57.2 million compared to $45.2 million in the second quarter of 2022, a 26.6-percent jump.
“Our strong financial performance in the second quarter was driven by clear execution against our core strategic priorities,” said Iggy Domagalski, president and CEO. “Top line growth was supported by sustained customer demand across all regions, including continued positive momentum in central Canada. Solid year-over-year growth in equipment and product support sales was complemented by even greater strength in industrial parts and engineered repair services revenue, and improved operating leverage saw adjusted basic earnings per share grow 26.4 percent to $2.09 for the first half of the year. Our robust backlog, up $20.5 million sequentially from the first quarter, as well as solid fundamentals across many of our key markets, supports confidence in our prospects as we advance further into 2023 and beyond.
“We continue to invest in working capital, most notably in inventory, to support customer orders and forecasted demand. We continue to believe that our strong financial results and balance sheet give us the flexibility to further invest in our expanded Hitachi relationship, additional organic initiatives and acquisition opportunities to help drive future growth. With respect to acquisitions and the growth of our industrial parts and engineered repair services businesses, subsequent to quarter end, we were very pleased to announce we have acquired Polyphase Engineered Controls, a specialized provider of custom electrical and instrumentation equipment that enhances our ability to undertake large scale time-critical integration projects.”
A regional look
Looking regionally, revenue in western Canada of $269.4 million increased 19.2 percent compared to Q222, because of strong sales of mining equipment, higher engineered repair services and industrial parts sales. Revenue in central Canada was $103.2 million, a 23.5-percent year-over-year leap primarily because of higher material handling equipment sales as well as construction and forestry equipment, and strength in industrial parts and ERS. Revenue in eastern Canada was $213.7 million, a 5.9-percent year-over-year increase, primarily because of strength in industrial parts and ERS.
The company’s core strategic priorities remain unchanged. Wajax is focused on continuing to organically grow its business, transacting on its acquisition pipeline, leveraging its enhanced relationship with Hitachi, prudently managing its balance sheet, deploying its ERP system, and entrenching sustainability into the business.
For the first six months of the year, Wajax’s revenue totaled $1,102.3 million compared to $950.7 million in the first six months of 2022, a 15.9-percent increase. Equipment rental totaled $22.2 million, up from $18.6 million a year ago, a 19.2-percent jump. Equipment sales hiked 11.5 percent; product support 11.6 percent; industrial parts 17.1 percent and engineered repair services 31 percent.
Wajax Corp. is based in Mississauga, Ontario, Canada.
