Wajax’s industrial parts business posted third-quarter sales of US$91.1 million, down 6.7% year-over-year, as competitive market conditions and tariff uncertainty pressured customers across Canada.

Reporting Nov. 2, the Canada-based distributor said Industrial Products sales declined in all regions. The decrease widened from 1.9% in 2Q.

Engineered Repair Services (ERS) revenue rose 5.3% to $60.9 million, driven primarily by large-project timing in western and eastern Canada. Together, Industrial Products and ERS generated $152.0 million, or 44% of Wajax’s revenue. Equipment sales, product support and rentals contributed the remaining 56%.

Companywide sales fell 1.1% to $341.8 million for the quarter ended Sept. 30. Equipment sales decreased 4.0%, while product support revenue grew 6.3%. Wajax cited a large mining shovel delivery in the prior-year quarter with no comparable delivery this year.

Gross margin narrowed 70 basis points to 20.1%, and adjusted EBITDA margin declined to 8.1% from 9.3%. Net earnings fell 28.1% to $8.6 million.

Wajax also said it implemented a workforce reduction during the quarter, recording $2.9 million in restructuring and related costs, primarily severance and separation benefits. The company’s earnings presentation noted a current count of approximately 3,000 employees. It’s 2025 annual report showed it ended December 2025 with over 2,900 employees,

Backlog increased 18.2% year-over-year to $428.2 million, just below its record level, including two large mining shovels scheduled for fourth-quarter delivery. After quarter-end, Wajax extended its $357.7 million bank credit facility to October 2031.

On Oct. 8, Wajax unveiled its 2027 Strategy Roadmap, aimed at making it Canada’s fastest-growing provider of industrial products, equipment and services by 2031. It plans separate presidents for its Industrial Products and ERS business and its Equipment, Parts and Service business, alongside investments in technicians, sales, digital tools and supply chain capabilities.

“As we prepare to enter 2027, our priorities are clear and our focus is on executing our Strategy Roadmap and implementing our announced organizational changes. .This includes discipline on margin performance, costs and working capital, and increasing operating leverage,” Wajax President and CEO George McClean said in a news release. “At the same time, we will make targeted investments in our people and the commercial, digital and operational capabilities required to grow. Together with greater accountability and a stronger focus on our customers and supplier partners, we believe these actions will strengthen Wajax’s competitive position and support sustainable, profitable growth over the long term.”

McClean became President and CEO on March 3, succeeding Iggy Domagalski following a succession process launched in October 2025. He previously held leadership roles at Master Group, Sonepar Canada, National Tire Distributors and Grainger.