Exchange Income Corp (TSE:EIF)
TSX:EIF
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Exchange Income
(TSX:EIF)
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Rating:66Neutral
Price Target:
C$114.00
▲(8.02% Upside)
Action:Reiterated
Date:05/14/26
The score is driven by solid operating performance but constrained by weak free-cash-flow history and still-elevated leverage. Technicals are supportive with price above key moving averages, while valuation is a headwind due to the high P/E. The latest earnings call was a clear positive, highlighted by strong Q1 results, improving balance-sheet metrics, and confidence toward the upper end of guidance.
Positive Factors
Diversified Business Model
A two-segment model (Aviation and Manufacturing) provides multiple, complementary cash-flow streams: essential regional aviation services with contract and government exposure plus niche manufacturing and aftermarket revenue. This diversification reduces single-market cyclicality and supports durable earnings and acquisition optionality.
Negative Factors
Elevated Leverage
Absolute debt levels remain large, leaving the company more exposed to rate moves and refinancing cycles. Elevated leverage can constrain capital allocation, increase interest expense sensitivity, and reduce flexibility to pursue large acquisitions or absorb operational shocks without deleveraging actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified Business Model
A two-segment model (Aviation and Manufacturing) provides multiple, complementary cash-flow streams: essential regional aviation services with contract and government exposure plus niche manufacturing and aftermarket revenue. This diversification reduces single-market cyclicality and supports durable earnings and acquisition optionality.
Read all positive factors
Exchange Income (EIF) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$6.01B
Dividend Yield3.13%
Average Volume (3M)140.62K
Price to Earnings (P/E)52.6
Beta (1Y)1.00
Revenue Growth27.49%
EPS Growth36.71%
CountryCA
Employees3,934
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)3.54
Shares Outstanding56,326,168
10 Day Avg. Volume116,976
30 Day Avg. Volume140,616
Financial Highlights & Ratios
PEG Ratio1.00
Price to Book (P/B)2.44
Price to Sales (P/S)1.31
P/FCF Ratio-53.31
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$125.00Price Target Upside18.44% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)4.14
Revenue Forecast (FY)C$3.74B
Exchange Income Business Overview & Revenue Model
Company Description
Exchange Income Corporation engages in aerospace and aviation services and equipment, and manufacturing businesses worldwide. It operates in two segments, Aerospace & Aviation, and Manufacturing. The Aerospace & Aviation segment offers scheduled a...
How the Company Makes Money
EIF makes money primarily through operating cash flows generated by its subsidiaries in two segments: (1) Aviation and (2) Manufacturing.
Aviation revenue model: Aviation businesses generate revenue from (a) passenger transportation on regional/c...
Exchange Income Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based operational and financial outperformance — double-digit revenue and EBITDA growth, material earnings and free cash flow gains, investment-grade rating and expanded liquidity. Key growth drivers include Aerospace & Aviation (acquisitions, leasing, ISR momentum) and accelerating demand in several Manufacturing subsegments (composite matting, specialty fabrication, precision manufacturing). Near-term headwinds include a Q1 manufacturing revenue/profit dip (but with improving momentum), tariff impacts on windows, elevated maintenance CapEx, foreign-exchange translation headwinds and geopolitical/fuel-supply uncertainty. On balance, the positives (record metrics, balance sheet improvements, strategic wins and visible momentum) outweigh the challenges.Positive Updates
Strong top-line and margin expansion
Revenue increased 30% year-over-year to $867 million for Q1 FY2026; Adjusted EBITDA rose 27% to $166 million. Management noted record results across key metrics despite macro volatility.
Negative Updates
Manufacturing segment near-term decline
Manufacturing revenues and profitability declined in Q1 versus the prior year (management attributes this to timing and seasonality), though leadership says momentum improved late in the quarter and post-quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong top-line and margin expansion
Revenue increased 30% year-over-year to $867 million for Q1 FY2026; Adjusted EBITDA rose 27% to $166 million. Management noted record results across key metrics despite macro volatility.
Read all positive updates
Company Guidance
Management left 2026 revenue guidance unchanged at $825–$875 million but said Q1’s strong start means they now expect to be near the upper end of that range (and could revisit the top end if momentum continues); that confidence is supported by Q1 results of revenue $867 million (up 30%), adjusted EBITDA $166 million (up 27%), adjusted net earnings $34 million (up 139%) and net earnings $28 million (up 287%), EPS $0.50 and adjusted EPS $0.61 (up 257% and 118%), free cash flow $120 million (FCF per share $2.14, up 33%), maintenance CapEx $79 million (maintenance CapEx per share $0.73, up 46%) and growth CapEx $40 million in the quarter, plus segment details (e.g., $2.5 million spent on a $60 million U.S. composite plant); balance sheet metrics cited to support the outlook include issuance of $600 million of unsecured notes at 4.324% (upsized from $400M), a DBRS BBB (low) stable rating, over $2 billion of available liquidity and leverage near 15‑year lows, while management flagged fuel‑supply risk and geopolitical volatility as the main downside risks.Exchange Income Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.48B | 3.28B | 2.66B | 2.50B | 2.06B | 1.41B |
| Gross Profit | 851.32M | 812.15M | 657.74M | 594.49M | 491.35M | 334.45M |
| EBITDA | 785.28M | 744.67M | 616.26M | 548.71M | 449.60M | 332.85M |
| Net Income | 188.21M | 167.52M | 121.23M | 122.31M | 109.67M | 68.59M |
Balance Sheet | ||||||
| Total Assets | 5.43B | 5.26B | 4.60B | 4.08B | 3.55B | 2.59B |
| Cash, Cash Equivalents and Short-Term Investments | 121.22M | 145.77M | 71.80M | 103.56M | 139.90M | 75.41M |
| Total Debt | 2.51B | 2.63B | 2.33B | 2.01B | 1.78B | 1.29B |
| Total Liabilities | 3.64B | 3.50B | 3.19B | 2.83B | 2.53B | 1.79B |
| Stockholders Equity | 1.78B | 1.76B | 1.41B | 1.25B | 1.02B | 800.27M |
Cash Flow | ||||||
| Free Cash Flow | -65.67M | -80.36M | -133.38M | -152.61M | -31.46M | 5.62M |
| Operating Cash Flow | 691.13M | 647.94M | 357.01M | 353.23M | 335.12M | 285.05M |
| Investing Cash Flow | -830.90M | -780.03M | -567.54M | -650.75M | -655.45M | -357.94M |
| Financing Cash Flow | 208.18M | 209.08M | 176.33M | 261.35M | 380.97M | 79.42M |
Exchange Income Technical Analysis
Positive
105.54
Price Trends
102.72
Positive
98.65
Positive
86.33
Positive
Market Momentum
0.69
Negative
54.31
Neutral
77.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EIF, the sentiment is Positive. The current price of 105.54 is above the 20-day moving average (MA) of 102.61, above the 50-day MA of 102.72, and above the 200-day MA of 86.33, indicating a bullish trend. The MACD of 0.69 indicates Negative momentum. The RSI at 54.31 is Neutral, neither overbought nor oversold. The STOCH value of 77.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EIF.
Exchange Income Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | C$1.53B | 18.22 | 4.83% | 0.93% | 10.42% | 12.81% | |
67 Neutral | C$556.35M | 18.72 | 12.73% | 0.76% | -7.22% | ― | |
66 Neutral | C$6.01B | 52.62 | 10.61% | 3.13% | 27.49% | 36.71% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | C$69.11M | 4.24 | 11.06% | ― | 7.42% | 89.31% | |
56 Neutral | C$5.39B | 27.75 | 34.23% | ― | 3.31% | -44.10% | |
52 Neutral | C$1.25B | 72.99 | 4.92% | 1.67% | -2.16% | -69.46% |
* Industrials Sector Average
TSE:EIF
Exchange Income
105.22
49.41
88.52%
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Exchange Income Corporate Events
Financial Disclosures
Exchange Income Corporation Schedules First-Quarter 2026 Earnings Call
Neutral
Apr 13, 2026
Exchange Income Corporation will release its first-quarter 2026 financial results after markets close on May 11, 2026 and will host a conference call with senior management the following morning. The call, accessible by phone and webcast with repl...
Dividends
Exchange Income Corporation Declares March 2026 Monthly Dividend
Positive
Mar 17, 2026
Exchange Income Corporation has declared eligible monthly dividends totaling $0.23 per share for March 2026, payable on April 15, 2026 to shareholders of record as of March 31, 2026. The dividends are designated as eligible under Canadian tax law,...
Business Operations and StrategyPrivate Placements and Financing
Exchange Income raises $600 million in inaugural investment grade bond issue
Positive
Mar 13, 2026
Exchange Income Corporation has closed a $600 million private placement of 4.324% senior unsecured notes due March 13, 2031, rated BBB (low) with a stable trend by Morningstar DBRS. The proceeds will be used to repay credit facility indebtedness a...
Business Operations and StrategyPrivate Placements and Financing
Exchange Income launches inaugural $600 million investment‑grade bond
Positive
Mar 5, 2026
Exchange Income Corporation has priced its inaugural investment‑grade senior unsecured notes, issuing $600 million of 4.324% notes due March 13, 2031, provisionally rated BBB (low) with a stable trend by Morningstar DBRS. Net proceeds will b...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Exchange Income posts record 2025 results and strengthens balance sheet for growth
Positive
Feb 25, 2026
Exchange Income Corporation reported record fourth-quarter and full-year 2025 results, with Q4 revenue rising 35% to $930 million and adjusted EBITDA up 30% to $216 million. Net earnings for the quarter jumped 83% to $52 million, driving a 62% inc...
Business Operations and StrategyPrivate Placements and Financing
Exchange Income Corp Earns Investment Grade Rating to Support Next Growth Phase
Positive
Feb 18, 2026
Exchange Income Corporation has secured its first investment grade corporate credit rating, receiving a BBB (low) with a stable outlook from Morningstar DBRS, a move that reflects the stability of its business model across aerospace, aviation and ...
Business Operations and StrategyDividends
Exchange Income Corporation Declares February 2026 Monthly Dividend
Positive
Feb 17, 2026
Exchange Income Corporation has declared a monthly eligible dividend of $0.23 per share for February 2026, payable on March 13, 2026 to shareholders of record as of February 27, 2026. The company continues to offer a dividend reinvestment and shar...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.