Canada-based industrial products and heavy equipment distributor Wajax Corporation reports its 2023 fourth quarter and full-year financial results on March 4, showing a considerably increase in annual revenue for its Industrial Parts segment despite a modest fourth quarter decline.

All revenue figures below have been converted from CAD to USD.

Fourth Quarter

Wajax (Mississauga, Ontario) posted total 4Q sales of $400 million (USD), up 0.2% year-over-year, while net profit of $8 million fell 33.2%. Adjusted EBITDA of $35 million on margin of 8.7% increased 11.5%.

The company’s 4Q gross margin of 21.2% jumped 310 basis points year-over-year, driven by higher margins across all revenue types and a higher proportion of Engineered Repair Services and product support sales as compared to equipment sales.

By Wajax business unit in 4Q:

• Equipment sales of $117 million declined 21.6% year-over-year
• Industrial Parts sales of $100 million declined 1.4% year-over-year
• Product Support sales of $98 million increased 12.3% year-over-year
• Engineered Repair Services (ERS) sales of $76 million jumped 42.8% year-over-year
• Equipment Rental sales of $9 million increased 14.4% year-over-year

Wajax said Western Canada revenue of $174 million decreased 15.5% year-over-year primarily due to the timing of minine equipment sales and and lower equipment sales in construction and forestry. Central Canada revenue of $78 million jumped 21.3% year-over-year, driven by strong ERS sales, higher equipment sales in construction and forestry, and higher product support revenue across all categories. Eastern Canada revenue of $149 million increased 14.8% year-over-year, driven by higher equipment and product support sales in construction and forestry, and strong industrial parts and ERS sales.

Full Year

For the entire year, Wajax posted total 2023 sales of $1.59 billion increased 9.8% vs. 2022, while net profit of $60 million increased 11.9%. Adjusted EBITDA of $145 million on margin of 9.2% increased 19.0%.

By Wajax business unit in 2023:

• Equipment sales of $447 million decreased 3.4% vs. 2022
• Industrial Parts sales of $446 million increased 12.9% vs. 2022
• Product Support sales of $400 million increased 12.3% vs. 2022
• Engineered Repair Service sales of $261 million increased 28.6% vs. 2022
• Equipment Rental sales of $33 million increased 14.9% vs. 2022

On MDM’s 2023 Top Distributors Lists, Wajax was No. 41 for Industrial Supplies based on its Industrial Parts revenue.