Exchange Income (EIF) Q3 2025 earnings summary

Executive summary

• Achieved record quarterly highs in revenue, adjusted EBITDA, net earnings, adjusted net earnings, and free cash flow for Q3 2025, driven by business model diversification, acquisitions, and despite a higher share count from debenture conversions.

• Increased annual dividend by 5% to CAD 2.76 per share, reflecting strong profitability, free cash flow growth, and a 4.5% rise aimed at reducing payout ratios.

• Completed redemption of all convertible debentures, simplifying the capital structure and increasing equity by over $200 million year-to-date.

• Integration of Canadian North acquisition is on track, cementing leadership in Northern Aviation and contributing significantly to results.

• Balance sheet is simplified and delevered, with leverage at historic lows and significant liquidity available for growth.

Financial highlights

• Q3 2025 revenue: CAD 960 million (up 35% year-over-year); adjusted EBITDA: CAD 231 million (up 20%); net earnings: CAD 69 million (up 23%); adjusted net earnings: CAD 76 million (up 23%).

• Free cash flow: CAD 171 million (up 26% year-over-year); free cash flow less maintenance CapEx: CAD 88 million.

• Earnings per share rose to $1.32 from $1.18; adjusted net earnings per share increased to $1.46 from $1.29 year-over-year.

• Free cash flow per share increased to $3.30 from $2.80; free cash flow less maintenance CapEx per share: $1.70.

• Maintenance CapEx for Q3: CAD 83 million (up from CAD 55 million); growth CapEx: CAD 128 million (up from CAD 93 million).

Outlook and guidance

• 2025 adjusted EBITDA guidance reaffirmed at CAD 725–765 million, with a bias to the midpoint.

• 2026 adjusted EBITDA guidance set at CAD 825–875 million, excluding new acquisitions or major contract wins.

• High end of 2026 guidance could be exceeded with acceleration in matting and window businesses, contract wins, or faster asset deployment.

• Guidance does not include upside from federal budget tailwinds, new defense spending, or critical mineral initiatives.

• Management remains confident in growth opportunities across both operating segments.