Exchange Income Corp (TSE:EIF)
TSX:EIF
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Exchange Income
(TSX:EIF)
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Rating:72Outperform
Price Target:
C$120.00
▲(14.10% Upside)
Action:ReiteratedDate:02/26/26
The score is driven primarily by strong technical momentum and a very constructive earnings call (upbeat 2026 guidance bias and improved credit/capital-structure position). Offsetting these positives are middling financial quality due to leverage and persistently negative free cash flow, plus a valuation headwind from the elevated P/E despite a moderate dividend yield.
Positive Factors
Diversified aerospace and manufacturing platform
A two-segment model (aerospace/aviation plus manufacturing) provides durable diversification across cyclicality and end markets. This allows cross-subsidization of cashflow, multiple organic and acquisition-driven growth levers, and lowers single-market dependency over a multi-quarter horizon.
Negative Factors
Meaningful leverage and debt load
High absolute debt and elevated leverage increase sensitivity to earnings volatility and refinancing cycles. Even with improved liquidity, leverage limits nimbleness for opportunistic M&A or rapid deleveraging, and heightens the impact of any sustained downturn on cash available for shareholders.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified aerospace and manufacturing platform
A two-segment model (aerospace/aviation plus manufacturing) provides durable diversification across cyclicality and end markets. This allows cross-subsidization of cashflow, multiple organic and acquisition-driven growth levers, and lowers single-market dependency over a multi-quarter horizon.
Read all positive factors
Exchange Income (EIF) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$5.92B
Dividend Yield3.13%
Average Volume (3M)140.62K
Price to Earnings (P/E)21.8
Beta (1Y)1.06
Revenue Growth15.47%
EPS Growth9.40%
CountryCA
Employees3,934
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)1.06
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$121.36Price Target Upside15.39% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)4.1
Revenue Forecast (FY)C$3.75B
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
Exchange Income generates revenue through multiple streams. In its aviation segment, the company earns income from passenger flights, freight services, and charter operations, serving remote and regional markets that require reliable transportatio...
Exchange Income Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The earnings call communicated a strongly positive performance and strategic position: record financial metrics (revenue, adjusted EBITDA, free cash flow, EPS growth), successful simplification of capital structure, attainment of an investment-grade credit rating, strong segment-level EBITDA growth, strategic M&A (Canadian North, Mach2) and clear growth initiatives (composite matting plant, ISR opportunities). Challenges were acknowledged — supply chain and labor shortages, inflationary pressures, wildfire-related interruptions, elevated maintenance and growth CapEx, and underperformance in the multistory window line — but management presented them as manageable headwinds with mitigations in place. Given the breadth and scale of the positive outcomes and the low relative severity of the challenges, the call conveyed an overall constructive outlook with meaningful upside potential.Positive Updates
Record Financial Performance (FY2025)
Company set historical records for revenues, adjusted EBITDA, free cash flow, free cash flow less maintenance CapEx, net earnings and adjusted net earnings on both absolute and per-share bases; Q4 revenue $930M, adjusted EBITDA $216M, free cash flow $165M, adjusted net earnings $58M and net earnings $52M; EPS $0.94 and adjusted EPS $1.06 (increases of 62% and 33% YoY respectively).
Negative Updates
Supply Chain, Labor Shortages and Inflationary Pressures
Ongoing challenges include labor shortages and supply chain constraints (notably aircraft parts and consumables) and significant inflationary pressures on costs; management expects these dynamics to persist and to partly offset growth benefits in 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Financial Performance (FY2025)
Company set historical records for revenues, adjusted EBITDA, free cash flow, free cash flow less maintenance CapEx, net earnings and adjusted net earnings on both absolute and per-share bases; Q4 revenue $930M, adjusted EBITDA $216M, free cash flow $165M, adjusted net earnings $58M and net earnings $52M; EPS $0.94 and adjusted EPS $1.06 (increases of 62% and 33% YoY respectively).
Read all positive updates
Company Guidance
Management reiterated 2026 guidance of $8.25–$8.75 per share and said they now have a bias to the mid‑to‑upper end of that range after adding two accretive items (the Air Canada commercial expansion and the Mach2 acquisition); that guidance already reflects the anticipated returns from more than $300 million of capital deployed by year‑end. They cautioned maintenance CapEx will be higher in 2026 driven by the full‑year inclusion of Canadian North and increased flying (Q4 maintenance CapEx was $97M), noted Q4 growth CapEx was $134M (including aircraft/engine purchases), and flagged a planned U.S. composite mat plant budgeted up to USD 60M to be operational mid‑to‑late 2027. Balance‑sheet context for the guidance: aggregate leverage at a historic low of 2.73x, >90% of convertible debentures converted to equity, a new DBRS BBB (low) stable rating enabling bond financing, roughly $1.25B undrawn capacity on a $3.5B facility, and the usual seasonality (Q1 weakest, Q3 strongest).Exchange Income Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
46
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.28B | 2.66B | 2.50B | 2.06B | 1.41B |
| Gross Profit | 812.15M | 657.74M | 594.49M | 491.35M | 334.45M |
| EBITDA | 744.67M | 616.26M | 548.71M | 449.60M | 332.85M |
| Net Income | 167.52M | 121.23M | 122.31M | 109.67M | 68.59M |
Balance Sheet | |||||
| Total Assets | 5.26B | 4.60B | 4.08B | 3.55B | 2.59B |
| Cash, Cash Equivalents and Short-Term Investments | 145.77M | 71.80M | 103.56M | 139.90M | 75.41M |
| Total Debt | 2.63B | 2.33B | 2.01B | 1.78B | 1.29B |
| Total Liabilities | 3.50B | 3.19B | 2.83B | 2.53B | 1.79B |
| Stockholders Equity | 1.76B | 1.41B | 1.25B | 1.02B | 800.27M |
Cash Flow | |||||
| Free Cash Flow | -80.36M | -133.38M | -152.61M | -31.46M | 5.62M |
| Operating Cash Flow | 647.94M | 357.01M | 353.23M | 335.12M | 285.05M |
| Investing Cash Flow | -780.03M | -567.54M | -650.75M | -655.45M | -357.94M |
| Financing Cash Flow | 209.08M | 176.33M | 261.35M | 380.97M | 79.42M |
Exchange Income Technical Analysis
Positive
105.17
Price Trends
100.65
Positive
91.23
Positive
80.12
Positive
Market Momentum
1.28
Negative
57.49
Neutral
81.73
Negative
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 105.17 is above the 20-day moving average (MA) of 101.87, above the 50-day MA of 100.65, and above the 200-day MA of 80.12, indicating a bullish trend. The MACD of 1.28 indicates Negative momentum. The RSI at 57.49 is Neutral, neither overbought nor oversold. The STOCH value of 81.73 is Negative, 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | C$5.92B | 21.80 | 10.61% | 3.13% | 15.47% | 9.40% | |
72 Outperform | C$526.61M | 7.03 | 14.89% | 0.76% | -12.42% | 69.23% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | C$1.30B | 26.82 | 4.83% | 0.93% | 8.84% | 131.58% | |
57 Neutral | C$5.23B | 4.82 | 30.13% | ― | -0.09% | -109.21% | |
52 Neutral | C$1.25B | 16.01 | 10.73% | 1.67% | 7.71% | 3170.43% | |
49 Neutral | C$69.11M | -11.43 | 11.06% | ― | 16.18% | 87.47% |
* Industrials Sector Average
TSE:EIF
Exchange Income
105.17
59.84
132.03%
TSE:JET
Global Crossing Airlines
1.36
0.00
0.00%
TSE:AC
Air Canada
17.86
4.85
37.28%
TSE:CHR
Chorus Aviation
22.49
4.43
24.54%
TSE:MAL
Magellan Aerospace
22.83
11.57
102.70%
TSE:CJT
Cargojet
82.76
10.57
14.65%
Exchange Income Corporate Events
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...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Exchange Income Corporation Expands Commercial Aviation Aftermarket Reach with MACH 2 Acquisition
Positive
Feb 2, 2026
Exchange Income Corporation has acquired MnM Aircraft Component Holdings, known as MACH 2, for US$43 million, funded through a mix of common shares and its credit facility, and will operate the business under its Regional One subsidiary. The deal ...
Business Operations and StrategyPrivate Placements and Financing
Exchange Income Corp Upsizes and Extends Credit Facility to $3.5 Billion
Positive
Jan 27, 2026
Exchange Income Corporation has closed a new $3.5 billion unsecured credit facility, increasing its borrowing capacity by $500 million, extending the maturity to January 26, 2030, and securing more flexible terms than its previous, secured facilit...
Business Operations and StrategyFinancial Disclosures
Exchange Income Corp Sets Date for Q4 2025 Results and Investor Call
Neutral
Jan 22, 2026
Exchange Income Corporation will release its 2025 fourth-quarter financial results after markets close on February 24, 2026, and will host a conference call with senior management the following morning to discuss the performance. The results call,...
Dividends
Exchange Income Corporation Declares $0.23 January 2026 Monthly Dividend
Positive
Jan 16, 2026
Exchange Income Corporation has declared a monthly dividend of $0.23 per share for January 2026, payable on February 13 to shareholders of record as of January 30. The dividend, classified as an eligible dividend under Canadian tax law, may provid...
Business Operations and StrategyDividends
Exchange Income Corporation Declares December 2025 Dividend Payment
Positive
Dec 17, 2025
Exchange Income Corporation announced a $0.23 per share dividend for December 2025, payable to shareholders on January 15, 2026. The dividend qualifies under Canadian tax laws for enhanced tax credits, benefiting shareholders, and aligns with the ...
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.