WAJAX ANNOUNCES 2026 FIRST QUARTER RESULTS

May 04 2026 22:42 BST

TSX Symbol: WJX

Improved Margins, Strong Operating Cash Flow and Lower Leverage Reflect Continued Operational Progress

TORONTO , May 4, 2026 /CNW/ - Wajax Corporation ("Wajax" or the "Corporation") today announced its 2026 first quarter results. All monetary amounts are in Canadian dollars unless otherwise noted.

Selected Highlights for the First Quarter

Strong balance sheet supported by $46.8 million of cash generated from operations, an improved leverage ratio of 1.51 times (December 31, 2025 - 1.62 times), and improved working capital efficiency of 24.6% (December 31, 2025 - 25.1%);⁽¹⁾
Solid backlog of $521.7 million up from $516.6 million at December 31, 2025, and inventory of $593.6 million increased from $547.6 million at December 31, 2025, reflecting targeted equipment inventory purchases in the construction and forestry category to support anticipated seasonal demand;⁽¹⁾
Revenue of $502.1 million was down from $555.0 million in the first quarter of the prior year, due primarily to lower equipment volumes, including the delivery of one large mining shovel versus two in the prior year period;
Gross profit margin of 20.6% increased 150 basis points ("bps") from 19.1% in the first quarter of 2025, reflecting margin improvement initiatives and sales mix;⁽¹⁾
Adjusted basic earnings per share of $0.67, compared to $0.69 in the same quarter of the prior year, and basic earnings per share of $0.82, compared to $0.60 in the same quarter of the prior year;⁽¹⁾ and
Adjusted EBITDA margin of 8.1% increased 30 bps year-over-year.⁽¹⁾

"Our first quarter results reflect continued progress against our operational priorities, with improved margins, strong operating cash flow and further reduced leverage, despite lower year-over-year revenue," said George McClean, President and Chief Executive Officer. "We maintained a strong balance sheet and delivered meaningful improvements in gross profit margin and working capital efficiency, reflecting the benefits of our ongoing operational focus."

Mr. McClean continued, "While customer uncertainty persists, with increased caution across certain sectors, our focus remains on disciplined execution. We continue to prioritize cost control and margin improvement, supported by prudent capital allocation. These efforts position us to manage near-term market variability while continuing to strengthen our foundation for long-term performance."

(dollars in millions, except per share data)	Three Months Ended March 31
	2026	2025	change
CONSOLIDATED RESULTS
Revenue	$ 502.1	$ 555.0	(9.5) %
Equipment sales	$ 131.1	$ 170.9	(23.3) %
Product support	$ 136.1	$ 146.4	(7.0) %
Industrial parts	$ 137.6	$ 144.7	(4.9) %
Engineered repair services ("ERS")	$ 86.7	$ 81.6	6.3 %
Equipment rental	$ 10.6	$ 11.4	(7.7) %

Net earnings	$ 17.8	$ 13.1	35.9 %
Basic earnings per share⁽²⁾	$ 0.82	$ 0.60	35.8 %

Adjusted net earnings⁽¹⁾⁽³⁾	$ 14.6	$ 14.9	(2.3) %
Adjusted basic earnings per share^(1)(2)(3)	$ 0.67	$ 0.69	(2.4) %

Adjusted EBIT⁽¹⁾	$ 25.4	$ 28.0	(9.2) %
Adjusted EBITDA⁽¹⁾	$ 40.5	$ 43.2	(6.3) %

*Adjusted EBIT margin⁽¹⁾*	5.1 %	5.0 %	*10 bps*
*Adjusted EBITDA margin⁽¹⁾*	8.1 %	7.8 %	*30 bps*

Cash generated from operating activities	$ 46.8	$ 25.7	$ 21.1

Outlook

Looking ahead, Wajax continues to see solid customer demand in the mining and energy sectors. Mining demand is supported by a backlog that includes one large mining shovel scheduled for delivery within the next four quarters. Market conditions in other sectors remain mixed across regions, with ongoing macroeconomic softness and uncertainty related to Canada–U.S. tariff and trade dynamics.

Wajax continues to maintain a strong balance sheet and a solid backlog. Inventory levels are within a normal operating range, while margin improvement and cost control remain key focus areas. Although demand visibility varies across end markets, the Corporation's diversified exposure and focused execution position it to manage current market conditions effectively.

Management believes that continued execution of its strategic priorities, supported by balance sheet strength and prudent capital allocation, will enable the Corporation to deliver sustainable long-term value.

Dividend

The Corporation has declared a dividend of $0.35 per share for the second quarter of 2026, payable on July 3, 2026, to shareholders of record on June 15, 2026.

First Quarter Highlights

Revenue in the first quarter of 2026 decreased $52.9 million, or 9.5%, to $502.1 million, from $555.0 million in the first quarter of 2025. Regionally:
- Revenue in western Canada of $227.4 million decreased 14.0% from the same period in the prior year due primarily to lower construction and forestry equipment sales and lower mining sales, reflecting the delivery of one large mining shovel in the first quarter of 2026 compared to two in the first quarter of the prior year.
- Revenue in central Canada of $90.3 million decreased 9.5% from the same period in the prior year due primarily to lower revenue in the material handling and industrial parts categories.
- Revenue in eastern Canada of $184.4 million decreased 3.3% from the same period in the prior year due primarily to lower equipment sales in the construction and forestry, and material handling categories, and lower industrial parts sales. These decreases were partially offset by higher ERS revenue and higher equipment sales in the power systems category.
Gross profit margin of 20.6% in the first quarter of 2026 increased 150 bps compared with gross profit margin of 19.1% in the same period of 2025.⁽¹⁾ This increase in margin was primarily due to higher margins realized on industrial parts and ERS sales, and a lower proportion of equipment sales from a sales mix perspective. These increases were partially offset by lower margins realized on product support revenue.
Selling and administrative expenses of $74.2 million in the first quarter of 2026 decreased $5.1 million compared with the first quarter of 2025. Excluding the $2.2 million unrealized gain on total return swaps (2025 – $1.4 million unrealized loss), selling and administrative expenses decreased $1.5 million compared with the same period in the prior year, due primarily to ongoing discipline in cost control and operational efficiency. Selling and administrative expenses as a percentage of revenue increased to 14.8% in the first quarter of 2026 from 14.3% in the same period of 2025, driven by the year-over-year decline in revenue.⁽¹⁾
Earnings before finance costs and income taxes ("EBIT") of $29.3 million in the first quarter of 2026 increased $2.6 million, or 9.6%, from $26.7 million in the same period of 2025. The year-over-year increase in EBIT resulted primarily from higher margins realized on industrial parts and ERS sales, cost discipline, and a $2.2 million unrealized gain on total return swaps in the first quarter of 2026 versus a $1.4 million unrealized loss in the same period of 2025. These increases were partially offset by lower sales volume. Adjusted EBIT decreased $2.6 million, or 9.2%, to $25.4 million in the first quarter of 2026 from $28.0 million in the first quarter of 2025, and adjusted EBIT margin increased to 5.1% in the first quarter of 2026 from 5.0% in the same quarter of 2025.⁽¹⁾
Finance costs of $5.1 million in the first quarter of 2026 decreased $3.9 million compared with the same quarter last year. Excluding the unrealized gain on interest rate derivatives of $0.5 million in the quarter and the unrealized loss of $1.2 million in the same period of the prior year, finance costs decreased $2.2 million, due primarily to lower average borrowings under Wajax's bank credit facility.
The Corporation generated net earnings of $17.8 million, or $0.82 per share, in the first quarter of 2026 versus $13.1 million, or $0.60 per share, in the same period of 2025. The Corporation generated adjusted net earnings of $14.6 million, or $0.67 per share, in the first quarter of 2026 versus $14.9 million, or $0.69 per share, in the same period of 2025.⁽¹⁾ Adjusted net earnings in the first quarter of 2026 excludes non-cash gains on mark to market of derivative instruments of $3.2 million after tax, or $0.15 per share (2025 – losses of $1.8 million after tax, or $0.08 per share).⁽¹⁾
Adjusted EBITDA margin increased to 8.1% in the first quarter of 2026 from 7.8% in the first quarter of 2025.⁽¹⁾
Cash flows generated from operating activities amounted to $46.8 million in the first quarter of 2026, compared with cash generated of $25.7 million in the same quarter of the prior year. The increase in cash generated of $21.1 million was mainly attributable to an increase in accounts payable and accrued liabilities of $98.4 million during the quarter, compared to a decrease of $3.9 million in the same quarter of the prior year. This increase in cash generated was offset partially by a targeted increase in inventory of $44.0 million during the quarter to support anticipated seasonal demand, compared to a decrease of $15.2 million in the same quarter of the prior year, and an increase in trade and other receivables of $29.7 million in the quarter compared to an increase of $11.3 million in the same quarter of the previous year.
The Corporation's backlog of $521.7 million at March 31, 2026 increased $5.1 million, or 1.0%, compared to December 31, 2025 backlog of $516.6 million. This was due primarily to higher construction and forestry, and material handling backlog, offset partially by lower mining backlog, driven largely by the delivery of a large mining shovel in the quarter which was in backlog at December 31, 2025.⁽¹⁾ Backlog at March 31, 2026 decreased $39.6 million, or 7.0%, compared to March 31, 2025 backlog of $561.3 million due primarily to lower mining backlog, driven largely by the delivery of five large mining shovels since March 31, 2025, as well as lower material handling backlog.⁽¹⁾ These decreases were partially offset by an increase in power systems backlog, driven by the River Class Destroyer subcontract entered into with Irving Shipbuilding Inc. during the fourth quarter of 2025, and higher ERS orders. Backlog at March 31, 2026 included one large mining shovel (March 31, 2025 - six large mining shovels).
Working capital of $479.6 million at March 31, 2026 decreased $18.9 million, from $498.6 million at December 31, 2025, due primarily to higher accounts payable and accrued liabilities, offset partially by higher inventory and higher trade and other receivables.⁽¹⁾ Working capital efficiency was 24.6%, an improvement in efficiency of 50 bps from 25.1% at December 31, 2025 due to the lower trailing four quarter average working capital.⁽¹⁾
The Corporation's leverage ratio improved to 1.51 times at March 31, 2026, from 1.62 times at December 31, 2025.⁽¹⁾The improvement in leverage ratio was due to the lower debt level driven by cash generated from operating activities during the quarter.⁽¹⁾
As previously announced on February 12, 2026, George McClean assumed the role of President and Chief Executive Officer effective March 3, 2026. Mr. McClean also joined the Corporation's Board of Directors.
Effective March 3, 2026, Andrew Tam was appointed Chief Legal Officer of the Corporation. Mr. Tam previously served as Senior Vice President, General Counsel and Corporate Secretary and first joined Wajax in 2011.

Conference Call Details

Wajax will webcast its First Quarter Financial Results Conference Call. You are invited to listen to the live webcast on Tuesday, May 5, 2026 at 2:00 p.m. EDT. To access the webcast, please visit our website wajax.com, under "Investor Relations", "Events and Presentations", "Wajax Corporation - Q1 2026 Financial Results" and click on the "Listen to the Webcast" link. An archive of the webcast will be available following the live presentation.

About Wajax Corporation

Founded in 1858, Wajax (TSX: WJX) is one of Canada's longest-standing and most diversified industrial products and services providers. The Corporation operates an integrated distribution system providing sales, parts and services to a broad range of customers in diverse sectors of the Canadian economy, including: construction, forestry, mining, industrial and commercial, oil sands, transportation, metal processing, government and utilities, and oil and gas.

Notes:

(1)	"Backlog", "Working capital", "Gross profit margin", "Selling and administrative expenses as a percentage of revenue", "Working capital efficiency", "Leverage ratio", "Adjusted net earnings", "Adjusted basic earnings per share", "Adjusted EBIT", "Adjusted EBIT margin", and "Adjusted EBITDA margin" do not have standardized meanings prescribed by generally accepted accounting principles ("GAAP"). See the Non-GAAP and Other Financial Measures section later in this press release.
(2)	Weighted average shares, net of shares held in trust, outstanding for calculation of basic earnings per share for the first quarter of 2026 were 21,817,770 (2025 – 21,802,252).
(3)	Net earnings excluding the following:
		a.	after-tax non-cash gains on mark to market of derivative instruments of $3.2 million (2025 – losses of $1.8 million), or basic earnings per share of $0.15 (2025 – basic loss per share of $0.08) for the first quarter of 2026.

Non-GAAP and Other Financial Measures

The press release contains certain non-GAAP and other financial measures that do not have a standardized meaning prescribed by GAAP. Therefore, these financial measures may not be comparable to similar measures presented by other issuers. Investors are cautioned that these measures should not be construed as an alternative to net earnings or to cash flow from operating, investing and financing activities determined in accordance with GAAP as indicators of the Corporation's performance. The Corporation's management believes that:

(i)	these measures are commonly reported and widely used by investors and management;
(ii)	the non-GAAP measures are commonly used as an indicator of a company's cash operating performance, profitability and ability to raise and service debt;
(iii)	"Adjusted net earnings", "Adjusted basic earnings per share" and "Adjusted diluted earnings per share" provide indications of the results by the Corporation's principal business activities prior to recognizing non-recurring costs (recoveries) and non-cash losses (gains) on mark to market of derivative instruments. These adjustments to net earnings and basic and diluted earnings per share allow the Corporation's management to consistently compare periods by removing infrequent charges incurred outside of the Corporation's principal business activities and the impact of unrealized losses (gains) resulting from fluctuations in interest rates and the Corporation's share price;
(iv)	"Adjusted EBITDA" provides an indication of the results by the Corporation's principal business activities prior to recognizing non-recurring costs (recoveries) and non-cash losses (gains) on mark to market of derivative instruments. These adjustments to net earnings allow the Corporation's management to consistently compare periods by removing infrequent charges incurred outside of the Corporation's principal business activities, the impact of unrealized losses (gains) resulting from fluctuations in interest rates and the Corporation's share price, the impact of fluctuations in finance costs related to the Corporation's capital structure, the impact of tax rates, and the impact of depreciation and amortization of long-term assets; and
(v)	"Pro-forma adjusted EBITDA" provides the same utility as Adjusted EBITDA described above, however pursuant to the terms of the bank credit facility, is adjusted for the EBITDA of business acquisitions made during the period as if they were made at the beginning of the trailing 12-month period, and for the deduction of payments of lease liabilities. Pro-forma adjusted EBITDA is used in calculating the Leverage ratio.

Non-GAAP financial measures are identified and defined below:

Funded net debt	Funded net debt includes bank indebtedness and total long-term debt, net of cash. Funded net debt is relevant in calculating the Corporation's funded net debt to total capital, which is a non-GAAP ratio commonly used as an indicator of a company's ability to raise and service debt.
Debt	Debt is funded net debt plus letters of credit. Debt is relevant in calculating the Corporation's leverage ratio, which is a non-GAAP ratio commonly used as an indicator of a company's ability to raise and service debt.
Total capital	Total capital is shareholders' equity plus funded net debt.
EBITDA	Net earnings (loss) before finance costs, income tax expense, depreciation and amortization.
Adjusted net earnings (loss)	Net earnings (loss) before any facility closure, restructuring and other related costs, gains/losses recorded on sale of properties, non-cash gains/losses on mark to market of derivative instruments, change in fair value of contingent consideration, and gain/loss on settlement of obligations under the Wajax Limited Supplemental Executive Retirement Plan (the "SERP").
Adjusted basic earnings (loss) per share and adjusted diluted earnings (loss) per share	Basic and diluted earnings (loss) per share before any facility closure, restructuring and other related costs, gains/losses recorded on sale of properties, non-cash gains/losses on mark to market of derivative instruments, change in fair value of contingent consideration, and gain/loss on settlement of obligations under the SERP.
Adjusted EBIT	EBIT before any facility closure, restructuring and other related costs, gains/losses recorded on sale of properties, non-cash gains/losses on mark to market of derivative instruments, change in fair value of contingent consideration, and gain/loss on settlement of obligations under the SERP.
Adjusted EBITDA	EBITDA before any facility closure, restructuring and other related costs, gains/losses recorded on sale of properties, non-cash gains/losses on mark to market of derivative instruments, change in fair value of contingent consideration, and gain/loss on settlement of obligations under the SERP.
Pro-forma adjusted EBITDA	Defined as adjusted EBITDA adjusted for the EBITDA of business acquisitions made during the period as if they were made at the beginning of the trailing 12-month period pursuant to the terms of the bank credit facility and the deduction of payments of lease liabilities. Pro-forma adjusted EBITDA is used in calculating the Leverage ratio.
Working capital	Defined as current assets less current liabilities, as presented in the condensed consolidated interim statements of financial position.
Other working capital amounts	Defined as working capital less trade and other receivables and inventory plus accounts payable and accrued liabilities, as presented in the condensed consolidated interim statements of financial position.

Non-GAAP ratios are identified and defined below:


Adjusted EBIT margin	Defined as adjusted EBIT (defined above) divided by revenue, as presented in the condensed consolidated interim statements of earnings.
EBITDA margin	Defined as EBITDA (defined above) divided by revenue, as presented in the condensed consolidated interim statements of earnings.
Adjusted EBITDA margin	Defined as adjusted EBITDA (defined above) divided by revenue, as presented in the condensed consolidated interim statements of earnings.
Leverage ratio	The leverage ratio is defined as debt (defined above) at the end of a particular quarter divided by trailing 12-month pro-forma adjusted EBITDA (defined above). The Corporation's objective is to maintain this ratio between 1.5 times and 2.0 times.
Funded net debt to total capital	Defined as funded net debt (defined above) divided by total capital (defined above).

Working capital efficiency	Defined as trailing four-quarter average working capital (defined above) as a percentage of the trailing 12-month revenue.

Supplementary financial measures are identified and defined below:


EBIT margin	Defined as EBIT divided by revenue, as presented in the condensed consolidated interim statements of earnings.
Backlog	Backlog is a management measure which includes the total sales value of customer purchase commitments for future delivery or commissioning of equipment, parts and related services, including ERS projects. There is no directly comparable GAAP financial measure for Backlog.
Gross profit margin	Defined as gross profit divided by revenue, as presented in the condensed consolidated interim statements of earnings.
Selling and administrative expenses as a percentage of revenue	Defined as selling and administrative expenses divided by revenue, as presented in the condensed consolidated interim statements of earnings.

Reconciliation of the Corporation's net earnings to adjusted net earnings, adjusted basic earnings per share and adjusted diluted earnings per share is as follows:

	Three months ended
	March 31
	2026	2025
Net earnings	$ 17.8	$ 13.1
Non-cash (gains) losses on mark to market of derivative instruments, after tax	(3.2)	1.8
Adjusted net earnings	$ 14.6	$ 14.9
Adjusted basic earnings per share ⁽¹⁾	$ 0.67	$ 0.69
Adjusted diluted earnings per share ⁽¹⁾	$ 0.65	$ 0.67

(1)	For the three months ended March 31, 2026, the number of weighted average basic and diluted shares outstanding were 21,817,770 and 22,339,380, respectively (2025 - 21,802,252 and 22,191,930, respectively).

Reconciliation of the Corporation's EBIT to EBITDA, Adjusted EBIT, Adjusted EBITDA and Pro-forma adjusted EBITDA is as follows:

	Three months ended		Twelve months ended
	March 31 2026	March 31 2025	March 31 2026	December 31 2025
EBIT	$ 29.3	$ 26.7	$ 109.3	$ 106.7
Depreciation and amortization	15.1	15.2	62.4	62.6
EBITDA	$ 44.4	$ 42.0	$ 171.7	$ 169.3

EBIT	$ 29.3	$ 26.7	$ 109.3	$ 106.7
Facility closure, restructuring and other related costs⁽¹⁾	--	--	8.2	8.2
Gain recorded on the sale of properties	--	--	(0.3)	(0.3)
Non-cash (gains) losses on mark to market of derivative instruments, excluding interest rate derivatives and cross currency swaps⁽²⁾	(3.9)	1.2	(5.7)	(0.6)
Change in fair value of contingent consideration⁽³⁾	--	--	(1.2)	(1.2)
Loss on settlement of obligations under the SERP⁽⁴⁾	--	--	1.3	1.3
Adjusted EBIT	$ 25.4	$ 28.0	$ 111.5	$ 114.1
Depreciation and amortization	15.1	15.2	62.4	62.6
Adjusted EBITDA	$ 40.5	$ 43.2	$ 173.9	$ 176.7
Payment of lease liabilities⁽⁵⁾			(45.7)	(44.1)
Pro-forma adjusted EBITDA			$ 128.2	$ 132.5

(1)	In 2025, the Corporation implemented a workforce reduction in response to economic conditions, and also recognized executive separation benefits. This cost relates primarily to severance costs and separation benefits.
(2)	Non-cash (gains) losses on mark to market of derivative instruments that are not effectively designated as hedging instruments under International Financial Reporting Standards ("IFRS"), excluding interest rate derivatives as their fair value fluctuations impact finance costs, and excluding cross currency swaps as their fair value fluctuations offset against any foreign exchange gains and losses on the revolving credit facility.
(3)	The change in fair value of contingent consideration relates to changes in the estimated fair value of future performance-based earnout payments relating to business acquisitions.
(4)	In 2025, the Corporation made lump sum payments to settle defined benefit pension obligations under the SERP relating to the majority of participants. As a result of the settlement of obligations under the SERP, the Corporation recognized a loss.
(5)	Effective with the reporting period beginning on January 1, 2019 and the adoption of IFRS 16, the Corporation amended the definition of funded net debt to exclude lease liabilities not considered part of debt. As a result, the corresponding lease costs must also be deducted from EBITDA for the purpose of calculating the leverage ratio.

Calculation of the Corporation's funded net debt, debt and leverage ratio is as follows:

	March 31 2026	December 31 2025
Cash	$ (3.0)	$ (8.3)
Long-term debt	195.6	222.1
Funded net debt	$ 192.6	$ 213.8
Letters of credit	1.1	1.2
Debt	$ 193.7	$ 215.0
Pro-forma adjusted EBITDA⁽¹⁾	$ 128.2	$ 132.5
Leverage ratio⁽²⁾	1.51	1.62

(1)

For the twelve months ended March 31, 2026 and December 31, 2025.

(2)

Calculation uses debt divided by the trailing four-quarter Pro-forma adjusted EBITDA. This leverage ratio is calculated for purposes of monitoring against the Corporation's target leverage ratio of between 1.5 times and 2.0 times. The calculation contains some differences from the leverage ratio calculated under the Corporation's bank credit facility agreement. The resulting leverage ratio under the bank credit facility agreement is not significantly different. See the Liquidity and Capital Resources section.

Calculation of total capital and funded net debt to total capital is as follows:

	March 31 2026	December 31 2025
Shareholders' equity	$ 546.4	$ 537.5
Funded net debt	192.6	213.8
Total capital	$ 739.1	$ 751.3
Funded net debt to total capital	26.1 %	28.5 %

Calculation of the Corporation's working capital and other working capital amounts is as follows:

	March 31 2026	December 31 2025
Total current assets	$ 1,025.0	$ 935.5
Total current liabilities	545.3	436.9
Working capital	$ 479.6	$ 498.6
Trade and other receivables	(308.9)	(279.3)
Inventory	(593.6)	(547.6)
Accounts payable and accrued liabilities	449.7	351.4
Other working capital amounts	$ 26.8	$ 23.2

Cautionary Statement Regarding Forward-Looking Information

This news release contains certain forward-looking statements and forward-looking information, as defined in applicable securities laws (collectively, "forward-looking statements"). These forward-looking statements relate to future events or the Corporation's future performance. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward looking statements can be identified by the use of words such as "plans", "anticipates", "intends", "predicts", "expects", "is expected", "scheduled", "believes", "estimates", "projects" or "forecasts", or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors beyond the Corporation's ability to predict or control which may cause actual results, performance and achievements to differ materially from those anticipated or implied in such forward-looking statements. To the extent any forward-looking information in this news release constitutes future-oriented financial information or financial outlook within the meaning of applicable securities law, such information is being provided to demonstrate the potential of the Corporation and readers are cautioned that this information may not be appropriate for any other purpose. There can be no assurance that any forward-looking statement will materialize. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this news release, reflect management's current beliefs and are based on information currently available to management. Although management believes that the expectations represented in such forward-looking statements are reasonable, there is no assurance that such expectations will prove to be correct. Specifically, this news release includes forward-looking statements regarding, among other things: our continued focus on disciplined execution, and continued prioritization of cost control and margin improvement, supported by prudent capital allocation, and our believe that these efforts position us to manage near-term market variability while continuing to strengthen our foundation for long-term performance; anticipated customer demand in the mining and energy sectors, the expected delivery of a large mining shovel currently in backlog within the next four quarters and management's outlook that market conditions in other sectors remain mixed across regions with continued macroeconomic softness and uncertainty related to Canada–U.S. tariff and trade dynamics; management's belief that the Corporation's diversified exposure and focused execution position it to manage current market conditions, and that continued execution of its strategic priorities, supported by balance sheet strength and prudent capital allocation, will enable the Corporation to deliver sustainable long-term value; and our objective of maintaining our leverage within a target range of 1.5 – 2.0 times. These statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions regarding: the absence of significant negative changes to general business and economic conditions; our ability to manage our business through ongoing uncertainty related to Canada-U.S. trade dynamics, including the imposition of new or changing trade tariffs; limited negative fluctuations in the supply and demand for, and the level and volatility of prices for, oil, natural gas and other commodities; the stability of financial market conditions, including interest rates; the ability of Hitachi Construction Machinery Americas Inc. ("Hitachi") and Wajax to develop and execute successful sales, marketing and other plans related to the enhanced direct distribution relationship which took effect on March 1, 2022; our continued ability to execute our strategic priorities, including our ability to execute on our organic growth priorities, complete and effectively integrate industrial parts and ERS acquisitions, and successfully implement new information technology platforms, systems and software, such as our ERP system; the future financial performance of the Corporation; limited fluctuations in our costs; the level of market competition; our continued ability to attract and retain skilled staff; our continued ability to procure quality products and inventory; and our ongoing maintenance of strong relationships with suppliers, employees and customers. The foregoing list of assumptions is not exhaustive. Factors that may cause actual results to vary materially include, but are not limited to: a continued or prolonged deterioration in general business and economic conditions; continued or prolonged uncertainty related to Canada-U.S. trade dynamics; new tariffs and/or counter-tariffs imposed on cross-border trade, particularly between Canada and the U.S.; negative fluctuations in the supply and demand for, and the level of prices for, oil, natural gas and other commodities; a continued or prolonged decrease in the price of oil or natural gas; the inability of Hitachi and Wajax to develop and execute successful sales, marketing and other plans related to the enhanced direct distribution relationship which took effect on March 1, 2022; a decrease in levels of customer confidence and spending; supply chain disruptions and shortages; fluctuations in financial market conditions, including interest rates; the level of demand for, and prices of, the products and services we offer; decreased market acceptance of the products we offer; the termination of distribution or original equipment manufacturer agreements; unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalation, our inability to reduce costs in response to slow-downs in market activity, unavailability of quality products or inventory, supply disruptions, job action and unanticipated events related to health, safety and environmental matters); our inability to attract and retain skilled staff and our inability to maintain strong relationships with our suppliers, employees and customers. The foregoing list of factors is not exhaustive.

Further information concerning the risks and uncertainties associated with these forward-looking statements and the Corporation's business may be found in our Management's Discussion and Analysis for the year-ended December 31, 2025 (the "2025 MD&A"), which has been filed under the Corporation's profile on SEDAR+ at www.sedarplus.ca, under the heading "Risk Management and Uncertainties". The forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement. The Corporation does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.

Readers are cautioned that the risks described in the 2025 MD&A are not the only risks that could impact the Corporation. Risks and uncertainties not currently known to the Corporation, or currently deemed to be immaterial, may have a material effect on the Corporation's business, financial condition or results of operations.

Additional information, including Wajax's 2025 Annual Report, is available under the Corporation's profile on SEDAR+ at www.sedarplus.ca.

SOURCE Wajax Corporation