Exchange Income (EIF) Q4 2025 earnings summary

Executive summary

• Achieved record annual and Q4 2025 results, with historical highs for revenue, adjusted EBITDA, free cash flow, net earnings, and per-share metrics.

• Simplified capital structure by redeeming all convertible debentures, resulting in the lowest leverage in 15 years.

• Secured investment-grade credit rating, enabling access to long-term, fixed-rate bond financing.

• Strategic acquisitions of Canadian North and Mach II/Mach2, both accretive and expanding aviation and aftermarket parts presence.

• Expanded and extended commercial agreement with Air Canada.

Financial highlights

• Annual revenue reached $3.3 billion, up 23% year-over-year; Q4 revenue was $930 million, up 35%.

• Adjusted EBITDA for the year was $754 million, up 20%; Q4 Adjusted EBITDA was $216 million, up 30%.

• Net earnings for the year were $168 million, up 38%; Q4 net earnings were $52 million, up 83%.

• Free cash flow for the year was $541 million, up 32%; Q4 free cash flow was $165 million, up 49%.

• Free cash flow per share rose 30% to CAD 3.00; free cash less maintenance CapEx per share up 38% to CAD 1.24.

Outlook and guidance

• 2026 Adjusted EBITDA guidance set at $825–$875 million, with bias toward upper end due to new Air Canada agreement and Mach II acquisition.

• Growth capital expenditures and acquisitions expected to drive continued record performance.

• Aerospace & Aviation segment expected to see continued growth from Canadian North, Air Canada agreement, and medevac contracts.

• Manufacturing segment anticipates consistent results, with environmental access solutions and precision manufacturing as key drivers.

• Guidance excludes potential upside from ISR contract wins or new defense-related projects.