Heavy machinery and industrial parts distributor Wajax announced its 2024 second quarter financial results on Aug. 8, showing a decline in sales offset by an improvement in gross margin.

Mississauga, Ontario-based Wajax posted 2Q revenue sales of $414 million USD, down 3.1% from the $427 million posted in the previous year. It followed a 1Q24 decline of 6.5%. Gross profit margin of 20.9% increased 100 basis points from 19.9% a year earlier.

The company’s adjusted net earnings of $16.7 million were down from the $21.13 million reported in the same quarter a year prior. 2Q adjusted EBITDA of $39.85 million and adjusted EBITDA margin of 9.6% were down compared to 2Q23.

Wajax 2Q24 Revenue by Segment

• Equipment sales — $131.4 million USD, a 5.2% decrease year-over-year
• Product support — $105.5 million, a 3% increase year-over-year
• Industrial parts — $107.2 million, a 5% decrease year-over-year
• Engineered repair services (ERS) — $61.9 million, a 4.4% decrease year-over-year
• Equipment rental — $7.9 million, a 4.8% decrease year-over-year

“The decrease in equipment sales versus the prior year period was primarily the result of the delivery of a large mining shovel in the second quarter of 2023 which did not recur this year,” Wajax President and CEO Iggy Domagalski said in the company’s financial release. “Lower revenue against a strong comparable quarter in 2023 was partially offset by growth in higher margin product support revenue, as well as a solid improvement in gross margin.”

Wajax was No. 32 on MDM’s Top Distributor’s List for Industrial Supply and No. 14 for MRO.