WINNIPEG, Manitoba - Exchange Income Corporation (TSX: EIF) ('EIC' or the 'Corporation') a diversified, acquisition-oriented company focused on opportunities in the Aerospace & Aviation and Manufacturing segments, reported its financial results for the three and six-months ending June 30, 2026.
All amounts are in Canadian currency.
Financial Highlights from EIC's Second Quarter 2026 Record second quarter Revenue of $952 million, an increase of $232 million or 32% compared to the prior period. Record second quarter Adjusted EBITDA of $226 million, representing growth of $49 million over the prior period or 28%. Record second quarter Free Cash Flow of $161 million, representing growth of 30% compared to the prior period of $123 million. Record second quarter Net Earnings of $57 million compared to the prior period of $40 million, an increase of 42%, and record Net Earnings per share of $1.01 compared to the prior period of $0.78 or an increase of 29%. Record second quarter Adjusted Net Earnings of $64 million compared to the prior period of $47 million, an increase of 35%, and record Adjusted Net Earnings per share of $1.13 compared to the prior period of $0.92 or an increase of 23%. Record second quarter Free Cash flow less Maintenance Capital Expenditures of $74 million compared to $57 million in the prior period or an increase of 29%. Trailing Twelve-Month Free Cash Flow less Maintenance Capital Expenditures Payout Ratio improved to 55% compared with the prior period of 63% and Trailing Twelve Month Adjusted Net Earnings Payout Ratio was an all-time low 65% compared to the prior period of 81%. The significant declines in our payout ratios included period over period increases in weighted average number of shares outstanding of 10% along with the 5% increase in dividend announced during the fourth quarter of fiscal 2025. Subsequent to quarter end, announced the finalized contract with Air Greenland to support the missionization of two DCH-8-200 aircraft for Maritime Domain Awareness operations in Greenland. Subsequent to quarter end, announced the non-exercise of the Government of Nunavut Equity Option. Subsequent to quarter end, announced an agreement on the scope of services with SkyAlyne to provide aircraft modifications, training and in-service support for the operation of the fleet under the Future Aircrew Training program.
CEO Commentary Mike Pyle, CEO, commented, 'The financial results of the second quarter once again proved the strength and resilience of our diversified business model. Quarterly records were achieved in the key financial metrics of Revenue, Adjusted EBITDA, Free Cash Flow, Free Cash Flow less Maintenance Capital Expenditures, Net Earnings and Adjusted Net Earnings. Furthermore, records were also set on per share metrics, which is even more remarkable when you consider that the number of outstanding shares, period over period, was approximately 10% primarily higher due to the conversion of the convertible debentures in the prior year. The operating results also lead to a nearly all-time low in our Free Cash Flow less Maintenance Capital Expenditure Payout Ratio and an all-time low in our Adjusted Net Earnings Payout Ratio. These incredibly positive results, coupled with our confidence in our outlook, have allowed the Board of Directors and management to increase our dividend. Our annualized per share dividend rate will increase from $2.76 to $2.88 per share for the August dividend date, which will equate to $0.24 per share monthly. On our first quarter conference call, I spoke about our accelerating momentum in our various business lines and that momentum has continued throughout the quarter and after quarter end. Our Aerospace & Aviation segment continued to generate strong operating results due to the acquisitions of Canadian North on July 1, 2025, the acquisition of Mach2 on January 31, 2026, strong passenger load factors across various jurisdictions, solid performance under our medevac contracts, past contract awards, and Growth Capital Expenditures. Momentum and solid operating results continued within each of the business lines. Our Essential Air Services business line continued to see strong demand trends on all operational fronts including scheduled service, cargo, charter and medevac. Our Aircraft Sales & Leasing business line continued to see strong demand signals as several aircraft were placed on lease and the business continued to experience robust demand for the business line's aircraft and engines. Lastly, the announcement of a contract with Air Greenland and the Government of Denmark along with the finalization of the scope of services under the SkyAlyne Future Aircrew Training program demonstrated strong demand for our world-class Aerospace business line services. Our Manufacturing segment's strong financial results continued throughout the quarter as momentum continued to build. Our Environmental Access Solutions business line profitability continued to strengthen compared to the prior period. The Canadian operations continued to see strong volumes of mat rentals supporting solid revenue and profitability increases compared to the prior period. The US composite operations continued to see robust demand for its products and the decision to build a state-of-the-art composite mat plant in Saltillo, Mississippi will provide further opportunities for US expansion. The plant is on-budget and on-time with operations expected to commence in the latter part of Fiscal 2027. Our MultiStorey Window Solutions business line results were in line with expectations as the market works through a softer demand environment from previous periods driven by project timing and past developer decisionmaking. We were encouraged to see our strongest quarter of bookings over the past several years during the second quarter, which were geographically diversified across North America and in a variety of end markets. The positivity noted in the first and second quarters in the Multi-Storey Window Solutions business line does not yet provide conclusive evidence of a wide scale recovery as the Southern Ontario market remains challenged due to investor-focused condominium supply and larger condominium demand imbalances. Our Precision Manufacturing and Engineering business line delivered strong performance on Revenues and Adjusted EBITDA across several end markets, customers and geographies as business sentiment continued to strengthen.'
About Exchange Income Corporation
Exchange Income Corporation is a diversified acquisition-oriented company, focused in two segments: Aerospace & Aviation and Manufacturing. The Corporation uses a disciplined acquisition strategy to identify already profitable, well-established companies that have strong management teams, generate steady cash flow, operate in niche markets and have opportunities for organic growth. For more information on the Corporation, please visit www.ExchangeIncomeCorp.ca. Additional information relating to the Corporation, including all public filings, is available on SEDAR+ (www.sedarplus.ca).
Contact:
Mike Pyle Pam
Tel: (204) 953-1314
Email: [email protected] [email protected]
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