Exchange Income (EIF) Q4 2025 earnings summary

Executive summary

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

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

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

• Market capitalization surpassed CAD 6 billion, reflecting strong business fundamentals and growth outlook.

• Strategic initiatives included the acquisition of Canadian North and post-year-end acquisition of Mach II, as well as an expanded Air Canada agreement.

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%.

• Record per share metrics across all key indicators, with EPS up 62% (adjusted) and 33% (reported) year-over-year.

Outlook and guidance

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

• Aerospace & Aviation segment expected to see strong growth from full-year Canadian North inclusion, Air Canada agreement, and new medevac contracts.

• Manufacturing segment anticipates consistent results, with environmental access solutions and composite matting driving growth.

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

• Defense and security sector exposure expected to provide incremental upside, not yet included in base guidance.