Wajax Corporation

Thank you for attending Ray Jax Corporation's 2026 Second Quarter Financial Results Webcast. On today's webcast will be Mr. George McClean, President and Chief Executive Officer, Ms. Tania Casadinho, Chief Financial Officer. Please be advised that this webcast is being recorded. Please note that this webcast contains forward-looking statements. Actual future results will differ from expected results. I will now turn the call over to Tania Casadinho.

Thank you, operator. Good afternoon and thank you for participating in our second quarter results call. This afternoon we will be following a webcast which includes a summary presentation of Wage Access Q2 2026 financial results. The presentation can be found on our website under investor relations, events and presentations. To begin, I would like to draw your attention to our cautionary statement regarding forward looking information on slide two. and the non-GAAP and other financial measures on slide three. Please turn to slide four and at this point I'll turn the call over to George.

Thank you, Tania. Thank you everyone for joining us today. Before I get into the quarter, I want to spend a moment on where we're headed as a company. As many of you know, I joined Wayjax and joined the Wayjax team in the CEO role in March and I've focused a good deal of my time on what I describe as my look, listen, learn tour. I get out to the branches and spend time with our teams, our customers and our supplier partners across the country. I am now five months in and that tour is largely complete. I've come away even more confident than when I started and importantly we are now shifting from listening to planning and preparing the organization for growth. What I've seen so far reinforces my confidence in this business, in the strength of our company, the character and dedication of our people and in the significant opportunities we have ahead of us. That strength starts with this platform shown on the slide. This slide provides an overview of Wayjax. The corporation has more than 167 years of Canadian operating history and operates across 104 branches with a team of 2,900 employees. During the quarter, our heavy equipment categories and revenue sources made up approximately 56% of our total revenue, while industrial parts and ERS generated approximately 44%. Turning to slide five, our purpose and values, this slide provides an overview of our purpose and values. WageX's purpose statement is empowering people to build a better tomorrow, which we strive to achieve by living our values and delivering an exceptional experience for our shareholders, customers, suppliers, our people, and the communities we serve. That purpose is grounded in our belief in our team. We hire great people, we listen to them, and we channel their energy, first toward efficiency and now increasingly toward growth. We also draw real strength from our roots as a stable, proudly Canadian company that has been operating since 1858 with a footprint right across the country. Our purpose and values guide our decision making and allow us to execute on our strategic priorities. Turning to slide six, this slide provides an overview of our strategic priorities which were refined for the start of 2026. During 2025, management focused on cost control, inventory optimization, and margin improvement to reduce leverage, enhance profitability, and increase cash flow from operations. These actions represented initial steps in an ongoing program of operational improvements. In 2026, management continues to emphasize disciplined operation execution across these focus areas supported by balance sheet strength and prudent capital allocation, which will enable the corporation to deliver sustainable long-term value. At this point, I thought it would be worthwhile to give you some color on the ambition behind those priorities and how we are executing. Our ambition is straightforward. We want Wayjax to be a stronger, more resilient and higher margin business over time, one that grows profitably and consistently through the cycle and not just with it. We have a good platform in our recurring product support and ERS businesses, which give us a more stable, higher margin base of revenue, and we have our strategic relationship with Hitachi, which remains a key long-term growth driver. The benefits are building gradually, but the opportunity is significant, particularly as Hitachi expands its presence in the Americas. And with our balance sheet now in excellent shape, we have real flexibility to rebuild our acquisition pipeline for when the timing is right. With a focus on efficiencies, we are embedding a lean culture across the organization. We've completed white belt training across much of the entire company. Our branch leaders and other key roles are now moving through yellow belt training. and we put in place a process to let our team members surface improvement ideas from the front line. We are also growing a dedicated strategic projects team to lead change initiatives and we made further ERP improvements in the quarter, including a better quoting process and enhancements to how we support our customers. We remain intensely focused on efficiencies, process improvement, cost management and our margin initiatives. We're using better data to sharpen our decision making, tighten our procurement and Inventory Management and drive further efficiencies across our network. This is iterative work. We hope to build on our gains quarter by quarter. That discipline is the foundation. The next slide shows how we're building on it and preparing the company for growth. This slide provides an overview of our strategic planning process. We've launched a strategic planning process engaging a group of 18 senior leaders from across the organization called the Strategy Working Group. Together, through a number of meetings, we're assessing opportunities across our businesses, regions, and operational functions to identify where we can create the greatest value for our customers and shareholders. As part of preparing the company for growth, we are recruiting into a number of key positions across the organization, spanning sales, marketing, strategic projects, talent, and communications, and these roles are helping to build our organizational capacity and bench strength. Since 2025, our focus has been on strengthening profitability, increasing cash generation and maintaining disciplined capital allocation. Building on that foundation, we're now focused on enhancing the capabilities that will support long-term profitable growth. Key priorities include strengthening commercial execution, investing in our sales force and our technician capabilities, advancing our go-to-market strategy, driving operational excellence and ensuring we have the right organizational structure and talent to support future success. The outcome of this work will help shape our 2027 strategic priorities and investment decisions. As always, we will remain disciplined in how we allocate capital and will focus on opportunities that strengthen our competitive position while delivering attractive long-term returns for shareholders. The work is progressing and we look forward to providing investors with additional detail on these priorities and investments as our planning advances. Overall, I've been very encouraged by what I've seen during my first five months at Wayjax. We have a strong foundation, exceptional people, and trusted customer and supplier relationships. Our focus now is building upon these strengths, improving execution, strengthening our competitive position, and investing in the capabilities that will support sustainable, profitable growth and long-term shareholder value.