Earnings call transcript: Wajax misses Q3 2026 estimates as stock slips

Wajax Corporation's Q3 2026 earnings call revealed that the company missed both profit and revenue estimates, with adjusted earnings per share at CAD 0.60 and revenue of CAD 477.8 million, both below analyst expectations. The stock price fell 2.37% in after-hours trading, closing at $32.96. Wajax's revenue declined by 1.1% from the prior year, due in part to the absence of a major mining shovel delivery.

The company's gross margin narrowed to 20.1% from 20.8%, adjusted EBITDA decreased by 13.2% to CAD 38.9 million, and operating cash flow turned negative to CAD 23.1 million. Wajax's backlog was CAD 598.6 million, near a record, providing some support for future sales. Management outlined a 2027 strategy plan focused on sales execution, supply chain efficiency, and leadership changes.

Lower sales volume, margin pressure in various segments, and CAD 4.1 million in restructuring costs contributed to the earnings miss. The stock remained above the 52-week low but below the 52-week high, indicating mixed investor sentiment.