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Exchange Income
(TSX:EIF)
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Rating:66Neutral
Price Target:
C$138.00
▲(30.76% 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
Exchange Income’s two-segment model (Aviation and Manufacturing) and acquisition focus create durable cash-flow diversification. Essential regional aviation services plus niche industrial manufacturing reduce single-market cyclicality and provide multiple, complementary cash generators over the medium term.
Negative Factors
High absolute leverage
Total debt of $2.51B and a debt/equity ratio around 1.41x leave the company more sensitive to interest‑rate moves or revenue setbacks. Even with improving metrics, elevated absolute leverage constrains flexibility for opportunistic spending and increases refinancing and covenant risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model
Exchange Income’s two-segment model (Aviation and Manufacturing) and acquisition focus create durable cash-flow diversification. Essential regional aviation services plus niche industrial manufacturing reduce single-market cyclicality and provide multiple, complementary cash generators over the medium term.
Read all positive factors
Exchange Income (EIF) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$7.18B
Dividend Yield3.13%
Average Volume (3M)140.62K
Price to Earnings (P/E)36.0
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$144.00Price Target Upside36.44% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)4.6
Revenue Forecast (FY)C$3.79B
Exchange Income Business Overview & Revenue Model
Company Description
Exchange Income Corporation (EIF) is a global enterprise operating in two distinct sectors: aerospace and aviation, and manufacturing. Its Aerospace & Aviation division delivers a comprehensive range of services, including regular passenger flight...
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 11, 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 | 790.11M | 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 | 2.43B | 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
Neutral
105.54
Price Trends
122.22
Positive
112.34
Positive
97.86
Positive
Market Momentum
1.39
Positive
49.43
Neutral
31.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EIF, the sentiment is Neutral. The current price of 105.54 is below the 20-day moving average (MA) of 130.84, below the 50-day MA of 122.22, and above the 200-day MA of 97.86, indicating a neutral trend. The MACD of 1.39 indicates Positive momentum. The RSI at 49.43 is Neutral, neither overbought nor oversold. The STOCH value of 31.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | C$1.81B | 40.03 | 5.48% | 0.93% | 10.42% | 12.81% | |
66 Neutral | C$7.18B | 36.01 | 11.35% | 3.13% | 27.49% | 36.71% | |
65 Neutral | C$568.81M | 9.38 | 12.73% | 0.76% | -7.22% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | C$6.51B | 8.84 | 34.23% | ― | 3.31% | -44.10% | |
58 Neutral | C$69.11M | -61.06 | 1.84% | ― | 7.42% | 89.31% | |
55 Neutral | C$1.29B | 35.88 | 4.92% | 1.67% | -2.16% | -69.46% |
* Industrials Sector Average
TSE:EIF
Exchange Income
127.70
64.11
100.83%
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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.