Exchange Income (EIF) Q2 2026 earnings summary

Executive summary

• Achieved record second quarter results across all key financial metrics, including revenue, adjusted EBITDA, net earnings, adjusted net earnings, free cash flow, and per share amounts, with strong year-over-year performance despite a 10% increase in shares outstanding from prior convertible debenture conversions.

• Updated 2026 guidance for adjusted EBITDA to CAD 890–920 million, reflecting increased confidence in business outlook and strong momentum in both Aerospace & Aviation and Manufacturing segments.

• Announced an annualized dividend increase from CAD 2.76 to CAD 2.88 per share, supported by lower payout ratios and robust free cash flow.

• Strategic contracts secured in aerospace, including the Future Aircrew Training program and Air Greenland ISR aircraft modification.

Financial highlights

• Q2 revenue reached CAD 952 million, up 32% year-over-year; adjusted EBITDA was CAD 226 million, up 28%.

• Net earnings for Q2 were CAD 57 million (up 42%), with adjusted net earnings at CAD 64 million (up 35%).

• Net earnings per share reached CAD 1.01, up 29% year-over-year; adjusted net earnings per share at CAD 1.13, up 23%.

• Free cash flow for Q2 was CAD 161 million (up 30%), and free cash flow less maintenance CapEx was CAD 75 million (up 30%).

• Aggregate leverage at 2.82x, near historic lows, with over CAD 2 billion in available liquidity.

Outlook and guidance

• 2026 adjusted EBITDA guidance raised to CAD 890–920 million, reflecting strong Q2 and positive outlook for H2.

• Third quarter expected to be seasonally strongest, with further working capital investment; normalization anticipated in Q4.

• Management remains bullish on long-term prospects, citing exposure to favorable secular trends and a strong acquisition pipeline.

• Aerospace & Aviation segment to see continued growth from new contracts, expanded Air Canada agreement, and medevac services.

• Manufacturing segment expects continued momentum, especially in Environmental Access Solutions and Precision Manufacturing.