Exchange Income Corporation reported record financial results for the first quarter ended March 31, 2026, driven by strong performance across its Aerospace & Aviation operations and continued momentum in strategic acquisitions and organic growth initiatives.
The company posted record quarterly revenue of $867 million, up 30% from $668 million in the prior-year period. Adjusted EBITDA also reached a record $166 million, increasing 28% year-over-year. Free Cash Flow climbed 48% to a record $120 million, while Free Cash Flow less Maintenance Capital Expenditures rose 61% to $41 million.
Net Earnings surged to $28 million, compared to $7 million in Q1 2025, representing a 287% increase. Basic earnings per share improved to $0.50 from $0.14. Adjusted Net Earnings reached a record $34 million, or $0.61 per share, up 139% year-over-year.
The Corporation also strengthened its financial position during the quarter by extending and expanding its credit facility to $3.5 billion and transitioning it from a secured to an unsecured structure. EIC further secured an investment-grade BBB (low) credit rating from Morningstar DBRS and completed a $600 million issuance of 4.324% senior unsecured notes due in 2031.
During the quarter, EIC announced the acquisition of Mach2 and expanded its commercial agreement with Air Canada, while also renewing its Normal Course Issuer Bid for common shares.
CEO Mike Pyle said the company’s diversified portfolio and essential-service business model enabled it to deliver resilient performance despite geopolitical uncertainty, shifting trade policies, and rising fuel prices.
“Our record results demonstrate the strength of our operating model and the disciplined execution of our teams,” said Pyle. “We continue to simplify and strengthen our balance sheet while positioning EIC for long-term growth through strategic investments, acquisitions, and operational execution.”
EIC updated its fiscal 2026 outlook, reaffirming Adjusted EBITDA guidance in the range of $825 million to $875 million, with expectations now trending toward the upper end of the range following the strong first-quarter performance.
The Aerospace & Aviation segment remained the primary growth driver, with revenue increasing 59% to $608 million and Adjusted EBITDA rising 43% to $146 million. Growth was supported by the acquisitions of Canadian North and Mach2, higher passenger demand, strong medevac contract performance, and increased aircraft leasing activity.
Meanwhile, the Manufacturing segment experienced a modest decline, with revenue decreasing 10% to $258 million and Adjusted EBITDA falling 9% to $37 million. The decline was primarily attributed to softer demand in the Multi-Storey Window Solutions business line and the impact of U.S. aluminum tariffs. However, EIC noted continued strength in its Environmental Access Solutions and Precision Manufacturing & Engineering operations.
Chief Corporate Development Officer Adam Terwin said the company continues to evaluate acquisition opportunities across both operating segments, emphasizing EIC’s disciplined approach focused on strong management teams, sustainable cash flow, and shareholder accretion.
Chief Financial Officer Richard Wowryk highlighted the company’s enhanced liquidity and balance sheet flexibility following the refinancing initiatives completed during the quarter.
“At quarter end, we had liquidity in excess of $2 billion to support organic growth initiatives and acquisitions,” Wowryk said. “Our investment-grade rating and senior unsecured notes validate the resilience and stability of EIC’s business model.”
Looking ahead, management expressed confidence in the company’s ability to continue generating stable growth through a combination of operational execution, strategic acquisitions, and strong demand across its essential-service businesses.
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