Highlights

  • EIF’s Q1FY25 revenue increased by 11.1% YoY to CAD 668.3 million.
  • The company’s adjusted EBITDA rose to CAD 130.1 million, driven by higher revenues, cost control, and operating efficiencies.
  • EIF has declared a monthly dividend of CAD 0.22 per share for May 2025, payable on June 13, 2025.

Exchange Income Corporation (TSX: EIF) is a diversified, acquisition-driven company operating in aerospace, aviation services, and manufacturing. It invests in profitable, niche-market businesses generating revenue from aviation operations, aircraft sales or leases, and manufacturing services.

In the first quarter of the financial year 2025 (Q1FY25), the company’s revenue increased by 11.1% YoY to CAD 668.3 million, primarily driven by  aerospace and aviation, contributions from acquisitions, and improved pricing across business segments. Adjusted EBITDA surged by 17.2% YoY to CAD 130.1 million, driven by higher revenues, cost control, and operating efficiencies. Net earnings grew by 59.2% YoY to CAD 7.2 million due to improved core profitability and a lower relative impact of acquisition and interest costs. Free cash flow rose by 31.6% YoY to CAD 81.5 million, compared to CAD 61.9 million in Q1FY24.

Recent Business Update

Exchange Income Corporation (TSX: EIF) has declared a monthly dividend of CAD 0.22 per share for May 2025, which is scheduled to be paid on June 13, 2025, to shareholders of record as of May 30. In the first quarter of 2025, EIF entered into a binding agreement to acquire Canadian North, a regional airline operator, with the aim of improving regional network coverage and generating operational synergies.

Additionally, EIF has completed a tuck-in acquisition of Newfoundland Helicopters Ltd. for CAD 13.5 million, subject to post-closing adjustments. This strategic move expands the company’s footprint in Canada’s helicopter services sector, strengthening its operational capacity in remote and resource-focused regions.

Company Outlook

In the fiscal year 2025, Exchange Income Corporation (EIF) anticipates Adjusted EBITDA in the range of CAD 690 million to CAD 730 million, marking a projected increase of 10% to 16% compared to FY 2024.

EIF’s growth outlook is supported by a steady pipeline of acquisition opportunities, as the company actively seeks strategically aligned businesses with experienced management and reliable cash flows, aiming to enhance shareholder value through accretive transactions.

Top 10 Shareholders

The top 10 shareholders of EIF together form around 12.88% of the total shareholding in the company. Bennett (Brad) and T. Rowe Price International Ltd hold a maximum stake at ~3.48% and ~1.92%, respectively.

Stock Information

The stock has gained approximately 6.25% over the past month and 16.58% over the last three months. It is currently trading above the average of its 52-week low of CAD 43.08 and 52-week high of CAD 59.32. As of June 10, 2025, the closing price stood at CAD 57.77.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is June 10 2025. The reference data in this report has been partly sourced from EODHD/Others.

 Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.