Cash generation and balance-sheet metrics also improved. Operating cash flow reached C$36.2 million, the leverage ratio fell to 1.38 times from 1.51 times at March 31, and working capital efficiency improved to 24.3% from 24.6%. The equipment backlog grew to C$546.6 million from C$521.7 million at the end of the first quarter.
CEO George McClean said the results demonstrate the continued benefits of operational initiatives despite lower year-over-year equipment sales. The company pays a quarterly dividend of C$0.35 per share, yielding approximately 4.3%, which was covered by about 48% of adjusted EPS in 2025.
Analysts have been trimming estimates. Scotiabank lowered its FY2027 EPS forecast to C$3.60 from C$3.76 in early July, while National Bank Financial and TD have also reduced price targets in recent months. The consensus target now sits at C$34.20 with a "Hold" rating.
The divergence between a revenue miss that triggered a double-digit share decline and improving margins, cash flow and leverage frames the near-term debate. Investors will watch whether the growing backlog and recurring product-support and ERS revenue can offset cyclical equipment volatility in the quarters ahead.
Can Wajax convert its expanding backlog and higher-margin service streams into consistent top-line growth, or will equipment cyclicality continue to dictate the stock's trajectory?
Sources: Source 1 · Source 2 · Source 3 · Source 4 · Source 5 · Source 6
