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Exchange Income
(TSX:EIF)
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Rating:66Neutral
Price Target:
C$129.00
▲(5.81% Upside)
Action:Reiterated
Date:08/17/26
The score is driven by strong earnings-call momentum (raised guidance and record results) and supportive technicals (uptrend with positive MACD). These positives are tempered by weaker underlying cash conversion (persistently negative free cash flow) and a relatively expensive valuation (P/E ~35).
Positive Factors
Record results and raised EBITDA guidance
Record quarterly results and repeated guidance increases indicate broad operating momentum across the portfolio, not merely isolated revenue growth. Higher expected EBITDA provides greater capacity for reinvestment, debt service, acquisitions and shareholder distributions over the next several quarters.
Negative Factors
Persistent negative free cash flow
Negative free cash flow means substantial capital spending and investment needs are absorbing operating cash rather than leaving surplus for debt reduction or distributions. If this persists, EIF may have less flexibility to fund acquisitions and withstand weaker operating conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Record results and raised EBITDA guidance
Record quarterly results and repeated guidance increases indicate broad operating momentum across the portfolio, not merely isolated revenue growth. Higher expected EBITDA provides greater capacity for reinvestment, debt service, acquisitions and shareholder distributions over the next several quarters.
Read all positive factors
Exchange Income (EIF) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$7.07B
Dividend Yield2.23%
Average Volume (3M)113.44K
Price to Earnings (P/E)33.0
Beta (1Y)0.98
Revenue Growth33.11%
EPS Growth40.81%
CountryCA
Employees3,934
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)3.77
Shares Outstanding56,385,060
10 Day Avg. Volume107,952
30 Day Avg. Volume113,436
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$148.60Price Target Upside21.88% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)4.65
Revenue Forecast (FY)C$3.91B
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 by operating its subsidiaries and consolidating their revenues and earnings across its two main segments. (1) Aviation revenue is generated from providing air transportation and aviation-related services, including scheduled and ch...
Exchange Income Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial trajectory: record-setting Q2 results, meaningful guidance increases, improved per-share metrics (EPS +29%, adjusted EPS +23%), a dividend raise, low leverage (2.82x) and robust liquidity (>CAD 2 billion). Segment-level momentum was broad—Aerospace & Aviation, Aircraft Sales & Leasing (including successful MACH 2 integration), and Manufacturing (composite mats, windows, precision manufacturing) all showed encouraging trends. Offsetting risks are manageable in the near term (inflationary cost pressures, MRO/supply constraints, working capital seasonality, tariff exposure, and some regional softness). Overall, the positive achievements and financial strength materially outweigh the challenges raised on the call.Positive Updates
Record Q2 Performance Across Key Metrics
Set second-quarter records in revenue, adjusted EBITDA, net earnings, adjusted net earnings, free cash flow, and free cash flow less maintenance CapEx. Net earnings per share were CAD 1.01, up 29% year-over-year, and adjusted net earnings per share were CAD 1.13, up 23% year-over-year.
Negative Updates
Inflationary Cost Pressures
Continued inflationary pressures on labor, aircraft parts, consumables, and overhaul costs were highlighted as offsets to revenue gains; management expects higher maintenance capital expenditures year-over-year tied to fleet growth and deferred maintenance scheduling.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Q2 Performance Across Key Metrics
Set second-quarter records in revenue, adjusted EBITDA, net earnings, adjusted net earnings, free cash flow, and free cash flow less maintenance CapEx. Net earnings per share were CAD 1.01, up 29% year-over-year, and adjusted net earnings per share were CAD 1.13, up 23% year-over-year.
Read all positive updates
Company Guidance
Management materially raised 2026 guidance, now forecasting adjusted EBITDA of CAD 890–920 million, supported by Q2 record results across revenue, adjusted EBITDA, net earnings and adjusted net earnings (Q2 net earnings per share CAD 1.01, +29% YoY; adjusted net earnings per share CAD 1.13, +23% YoY). Strong cash generation drove a free cash flow less maintenance CapEx payout ratio of ~55% (near an all‑time low) and an adjusted net earnings payout ratio at an all‑time low of 65%, enabling a dividend increase from CAD 2.76 to CAD 2.88 annualized; balance sheet metrics remain healthy with aggregate leverage ~2.82x and over CAD 2 billion of available liquidity. Management noted YTD growth capex of CAD 120 million, Q2 maintenance/growth capex of CAD 76 million (Aerospace & Aviation) and CAD 10 million (Manufacturing), seasonal strength into Q3 with Q3 profitability expected slightly above prior year and Q4 in line, and said reaching a CAD 1 billion EBITDA framework (~10% growth) is achievable though 2027 guidance will be provided with Q3 results.Exchange Income Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.71B | 3.28B | 2.66B | 2.50B | 2.06B | 1.41B |
| Gross Profit | 911.30M | 812.15M | 657.74M | 594.49M | 491.35M | 334.45M |
| EBITDA | 841.82M | 744.67M | 616.26M | 548.71M | 449.60M | 332.85M |
| Net Income | 205.12M | 167.52M | 121.23M | 122.31M | 109.67M | 68.59M |
Balance Sheet | ||||||
| Total Assets | 5.63B | 5.26B | 4.60B | 4.08B | 3.55B | 2.59B |
| Cash, Cash Equivalents and Short-Term Investments | 82.05M | 145.77M | 71.80M | 103.56M | 139.90M | 75.41M |
| Total Debt | 2.60B | 2.43B | 2.33B | 2.01B | 1.78B | 1.29B |
| Total Liabilities | 3.79B | 3.50B | 3.19B | 2.83B | 2.53B | 1.79B |
| Stockholders Equity | 1.83B | 1.76B | 1.41B | 1.25B | 1.02B | 800.27M |
Cash Flow | ||||||
| Free Cash Flow | -148.41M | -80.36M | -133.38M | -152.61M | -31.46M | 5.62M |
| Operating Cash Flow | 714.60M | 647.94M | 357.01M | 353.23M | 335.12M | 285.05M |
| Investing Cash Flow | -917.02M | -780.03M | -567.54M | -650.75M | -655.45M | -357.94M |
| Financing Cash Flow | 49.95M | 209.08M | 176.33M | 261.35M | 380.97M | 79.42M |
Exchange Income Technical Analysis
Positive
121.92
Price Trends
123.74
Positive
122.63
Positive
109.34
Positive
Market Momentum
-0.17
Negative
61.50
Neutral
93.98
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 121.92 is above the 20-day moving average (MA) of 118.98, below the 50-day MA of 123.74, and above the 200-day MA of 109.34, indicating a bullish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 61.50 is Neutral, neither overbought nor oversold. The STOCH value of 93.98 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | C$689.53M | 15.31 | 9.32% | 1.34% | -3.60% | ― | |
66 Neutral | C$7.07B | 32.95 | 11.69% | 2.23% | 33.11% | 40.81% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | C$7.54B | 19.01 | 16.92% | ― | 5.63% | -65.53% | |
61 Neutral | C$1.29B | 28.72 | 6.30% | 1.70% | 0.80% | -66.47% | |
60 Neutral | C$1.95B | 31.58 | 7.11% | 0.60% | 15.36% | 57.18% | |
47 Neutral | C$69.11M | -14.38 | 8.11% | ― | 5.66% | 50.33% |
* Industrials Sector Average
TSE:EIF
Exchange Income
124.23
52.68
73.63%
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Exchange Income Corporate Events
Business Operations and StrategyM&A Transactions
Exchange Income to Acquire TerraPro in $30 Million Access-Matting Deal
Positive
Aug 24, 2026
Exchange Income Corporation has agreed to acquire TerraPro Inc. for $30 million via a plan of arrangement, funding the deal with a mix of common shares and its credit facility, with closing expected early in the fourth quarter. TerraPro’s ac...
Business Operations and StrategyDividends
Exchange Income Corp lifts monthly dividend, signaling confidence in long-term outlook
Positive
Aug 17, 2026
Exchange Income Corporation has raised its monthly dividend by $0.01 to $0.24 per share, with the first payment at the new rate payable on September 15, 2026 to shareholders of record on August 31, 2026. The increase signals management’s con...
Business Operations and StrategyDividendsFinancial Disclosures
Exchange Income Corp Lifts Dividend and Guidance on Record Q2 Results
Positive
Aug 11, 2026
Exchange Income Corporation reported record second-quarter 2026 results, with revenue rising 32% to $952 million and adjusted EBITDA climbing 28% to $226 million. The company also posted record free cash flow, net earnings and adjusted net earning...
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.