Record Results Headlined by 287% Increase in Net Earnings and 257% Increase in Net Earnings per Share Driven by Continued Strength in Operations

EIC Posts First Quarter Records for Revenue of $867 Million, Adjusted EBITDA1 of $166 Million, Net Earnings of $28 Million and Adjusted Net Earnings1 of $34 million, Free Cash Flow1 and Free Cash Flow Less Maintenance Capital Expenditures1 of $120 Million and $41 Million, respectivelyWINNIPEG, Manitoba--(BUSINESS WIRE)--$EIF #dividend--Exchange Income Corporation (TSX: EIF) (“EIC” or the “Corporation”) a diversified, acquisition-oriented company focused on opportunities in the Aerospace & Aviation and Manufacturing segments, reported its financial results for the three-months ending March 31, 2026. All amounts are in Canadian currency. Q1 Financial Highlights Record first quarter Revenue of $867 million, an increase of $198 million or 30% compared to the prior period. Record Adjusted EBITDA of $166 million, representing growth of $36 million or 28% over the prior period. Free Cash Flow first quarter record of $120 million representing growth of 48% compared to the prior period of $81 million. Net Earnings of $28 million compared to the prior period of $7 million, an increase of 287%, and Net Earnings per share of $0.50 compared to the prior period of $0.14 or an increase of 257%. Record Adjusted Net Earnings of $34 million compared to the prior period of $14 million, an increase of 139%, and Adjusted Net Earnings per share of $0.61 compared to the prior period of $0.28. Record Free Cash flow less Maintenance Capital Expenditures of $41 million compared to $26 million in the prior period. Trailing Twelve Month Free Cash Flow less Maintenance Capital Expenditures Payout Ratio1 improved to 57% compared to the prior period of 63% and Trailing Twelve Month Adjusted Net Earnings Payout Ratio1 improved to an all-time record of 67% compared to the prior period of 84%. The payout ratios significant declines included period over period increases in weighted average number of shares outstanding of 11% along with the 5% increase in dividend during the fourth quarter of fiscal 2025. Announced the extension and expansion of the Credit Facility to $3.5 billion while increasing the flexibility as the facility changed from a secured to unsecured facility. Announced an investment grade corporate rating and the issuance of $600 million of 4.324% senior unsecured notes due March 13, 2031 with the proceeds used to repay existing indebtedness under the Credit Facility. Announced the acquisition of Mach2 and the extension and expansion of the commercial agreement with Air Canada. Announced the renewal of the Normal Course Issuer Bid for Common Shares. 2026 Guidance Update Based on the first quarter results we expect that our Adjusted EBITDA for Fiscal 2026 to be in the range of $825 million to $875 million with an updated bias to the upper end of the range. CEO Commentary Mike Pyle, CEO, commented “This quarter reinforces a simple truth about EIC: when conditions become more volatile, our diversified portfolio and essential-service businesses provide stability. In an environment marked by geopolitical conflict, constantly shifting trade policy, rising fuel prices and uneven business sentiment, EIC delivered record results by staying focused on what we control—operational execution and taking a long-term view of our businesses. The proof is in our performance: record Revenue, record Adjusted EBITDA, record Free Cash Flow, record Free Cash Flow less Maintenance Capital Expenditures, record Net Earnings and record Adjusted Net Earnings. These results were achieved alongside continued progress in simplifying and strengthening our balance sheet. The extension and upsize of our credit facility, our investment grade corporate rating and the successful issuance of senior unsecured notes are tangible demonstrations of external confidence in EIC’s stability—providing us with meaningful liquidity, flexibility and runway to keep investing. Across our Aerospace & Aviation and Manufacturing segments, our teams continued to deliver critical services, advance contract-driven growth initiatives, and position our businesses to capture opportunities. With our updated expectation that fiscal 2026 will be near the upper end of our guidance, a strong pipeline of organic and acquisition opportunities, and dedicated teams across the organization, we are well positioned to provide stability and resilience today and long into the future. To implement our strategic priorities, we expanded our executive team and realigned roles and responsibilities which will drive the next growth phase for EIC. Our executive team was bolstered by the announcement of three internal promotions to the executive team including Carmine Lisi, Chief Corporate Risk Officer, Marly Spivak, Chief Taxation Officer, and Garth Waddell, Chief Administrative Officer. Carmine, Marly and Garth have been long-time leaders at EIC and have built out teams and capabilities that align with the culture of EIC. The addition of the three into the executive ranks, along with the existing team of Jake, Adam, Richard, Darwin, Curtis, Steve, Dave and Pam is a logical extension to allow for future accelerated growth and enhanced capacity at the executive level. In concert with the announcements, Darwin Sparrow will be assuming the critically important role of Chief Integration Officer and Travis Muhr will be taking on the Chief Operating Officer role. I believe we have one of the strongest executive teams assembled and we are collectively excited to usher in a new phase for EIC while retaining the culture and lessons learned from the past. People drive results and we are proactively growing the team to prepare for future successes. Our Aerospace & Aviation segment continued to generate strong operating results due to the acquisitions of Canadian North on July 1, 2025, the acquisition of Mach2 on January 31, 2026, strong passenger load factors across various jurisdictions, solid performance under our medevac contracts, past contract awards, and growth capital investments. The deployment of the second aircraft on the UK Home Office contract in the fourth quarter of Fiscal 2025 coupled with high tempo flying of ISR assets around the world also contributed to the positive results. Momentum continued within our Aircraft Sales & Leasing business line as additional aircraft were placed on lease, and we are continuing to experience robust demand for our business line’s aircraft and engines. During the quarter and after quarter end, jet fuel prices moved higher amid supply-related uncertainty tied to geopolitical events. While some global air operators have adjusted schedules in response to these dynamics, our Aircraft Sales & Leasing customers have not been materially impacted to date. We continue to see robust demand for aircraft, engines, and parts, and our team is proactively monitoring the market and engaging with customers to manage risk and mitigate any potential exposure as well as executing on opportunities. Our Manufacturing segment had strong performance relative to our internal expectations. Compared to the prior period, Revenue and Adjusted EBITDA, were down marginally due to the expected moderation in the Multi-Storey Window Solutions business line as the market works through a softer demand environment driven by project timing and past developer decision-making. Our Environmental Access Solutions business line profitability was consistent with the prior period. The Canadian operations continued to see strong volumes of mat rentals supporting solid revenue and profitability compared to the prior period. The first quarter of 2025 for the Canadian operations benefited from unusually strong demobilization results related to project decommissioning activity; current period operations results were consistent with expectations and normal seasonality. The US composite operations continued to see robust demand for their products and the decision to build a state-of-the-art composite mat plant in Saltillo, Mississippi will provide further opportunities for US expansion. The plant is on-budget and on-time with operations expected to commence in the latter part of Fiscal 2027. Our Precision Manufacturing and Engineering business line delivered steady performance on Revenues and Adjusted EBITDA, with improving momentum through the quarter, supported by increased customer orders late in the period and after quarter end including several individual company record contract awards. We are very proud to achieve first quarter records in all our key metrics. The financial results continue to show the diversification and resiliency of our business lines and the critical services that our businesses provide. We remain poised to grow organically and our management teams have been proactively identifying opportunities for growth, while Adam and his team have been evaluating a number of potential acquisitions.” “Our pipeline of opportunities continues to be strong,” noted Adam Terwin, EIC’s Chief Corporate Development Officer. “We are presently assessing opportunities that would strategically fit within each of our operating segments. Our disciplined acquisition approach focuses on the strength of management teams, sustainability of the target’s cash flow and ensures that any ultimate acquisition would be accretive to our shareholders. The acquisition of Mach2 was a strategic fit for our Aircraft Sales & Leasing business line and met all our disciplined acquisition requirements. The Mach2 management team has been working very closely with our Aircraft Sales & Leasing executive management team to execute on strategic initiatives, and the integration of the business has been going very well. Our EIC story is resonating with the potential vendors I speak with on a daily basis and the collective success of our established strategy, and the success of our underlying businesses will drive future successful negotiations with potential vendors.” Q1 Selected Financial Highlights (All amounts in thousands except % and share data) Q1 2026 Q1 2025 % Change Revenue $866,583 $668,276 30% Adjusted EBITDA $166,094 $130,136 28% Net Earnings $27,894 $7,207 287% per share (basic) $0.50 $0.14 257% Adjusted Net Earnings $34,104 $14,295 139% per share (basic) $0.61 $0.28 118% Trailing Twelve Month Adjusted Net Earnings Payout Ratio (basic) 67% 84% Free Cash Flow $120,246 $81,484 48% per share (basic) $2.14 $1.61 33% Free Cash Flow less Maintenance Capital Expenditures $41,027 $25,500 61% per share (basic) $0.73 $0.50 46% Trailing Twelve Month Free Cash Flow less Maintenance Capital Expenditures Payout Ratio (basic) 57% 63% Dividends declared $38,816 $33,550 16% Dividends per share $0.69 $0.66 5% Review of Q1 Financial Results Consolidated revenue for the quarter was $867 million, which was an increase of $198 million or 30% over the prior period. Consolidated Adjusted EBITDA for the quarter was $166 million, which was an increase of $36 million or 28% compared to prior period. Revenue in the Aerospace & Aviation segment grew by $226 million or 59% to $608 million and Adjusted EBITDA generated by the Aerospace & Aviation segment increased by $44 million to $146 million, an increase of 43%. The most significant increases in revenue and profitability within the Essential Air Services business line were related to the acquisition of Canadian North, increased passenger load factors across various jurisdictions and strong performance under our various medevac contracts. The Aerospace business line continued to experience high tempo flying amongst various contracts along with the operational deployment of a second aircraft for the UK Home Office during the fourth quarter of Fiscal 2025. The Aircraft Sales & Leasing business line demonstrated continued strength in the leasing business along with strong demand for its parts, aircraft and engines. Revenue in the Manufacturing segment decreased by $28 million or 10% to $258 million and Adjusted EBITDA decreased by $4 million or 9% to $37 million. The Environmental Access Solutions business line continued to experience robust demand for its composite mat solutions within its US operations. The Canadian operations continued to see strong volumes on mat rentals supporting solid revenue and profitability compared to the prior period. The first quarter of 2025 benefited from unusually strong operational results related to project decommissioning activity; current period operations results were consistent with expectations and normal seasonality. Revenues and profitability within the Multi-Storey Windows Solutions business line moderated as expected relative to the prior period reflecting the timing of project awards in prior years due to cautious developer decision-making at that time. Furthermore, US tariffs on aluminum negatively impacted profitability during the quarter compared to the prior period. Our Precision Manufacturing & Engineering business line revenues and Adjusted EBITDA were relatively consistent with the prior period and specifically noted improved momentum throughout the quarter, supported by increased customer orders late in the period and subsequent to quarter end, and accordingly we expect increased profitability relative to the comparative period in the second quarter. EIC recorded Net Earnings of $28 million compared to $7 million in the prior period or an increase of 287%. Furthermore, EIC recorded Adjusted Net Earnings of $34 million compared to $14 million in the prior period or an increase of 139%. The Corporation generated Free Cash Flow of $120 million, a $39 million increase over $81 million in the prior period primarily due to the higher Adjusted EBITDA coupled with a decrease in interest expense. Free Cash Flow less Maintenance Capital Expenditures was $41 million compared to $26 million in the prior period or an increase of 61%. The increase in Adjusted EBITDA was partially offset by the expected increase in Maintenance Capital Expenditures, due to the acquisition of Canadian North, the increase in fleet size, hours flown and inflationary effects on maintenance events. The Corporation’s Trailing Twelve-Month Free Cash Flow less Maintenance Capital Expenditures payout ratio improved to 57% compared to the prior year of 63%. Despite the increase in shares outstanding of 11% due to the conversion of convertible debt instruments and the 5% dividend increase announced in the fourth quarter, our dividend payout metrics continued to improve on both Free Cash Flow less Maintenance Capital Expenditures and Adjusted Net Earnings basis—reinforcing the strength of our model. Richard Wowryk, EIC’s CFO commented, “During the quarter, we announced the upsize of our syndicated credit facility to $3.5 billion and extended its maturity to January 2030, with more flexible terms and conditions along with a change from a secured to an unsecured facility. We also announced an investment grade credit rating of BBB (low) with a stable outlook from Morningstar DBRS. Subsequent to the announcement of the investment grade credit rating, we executed on our inaugural offering of investment grade 4.324% senior unsecured notes with a principal amount of $600 million due March 2031 which will result in substantial interest savings when compared to alternative fixed rate instruments, including 5-year fixed rate hedges. The proceeds of the senior unsecured notes were used to repay outstanding indebtedness on the credit facility and at quarter end we had liquidity in excess of $2 billion to execute on organic growth initiatives and acquisitions. The transactions do not change our conservative attitude on debt and leverage. Rather, the investment grade credit rating and senior unsecured bonds provide a permanent layer of fixed rate capital to ensure available liquidity to execute on our strategies long into the future. Our balance sheet is incredibly strong and will continue to be a cornerstone to our business strategy. The senior unsecured notes transaction and investment grade credit rating were executed during a time of significant geopolitical uncertainty and provide external validation of the resilient and stable business model that we have built over time.” OutlookRead the full story here

Record Results Headlined by 287% Increase in Net Earnings and 257% Increase in Net Earnings per Share Driven by Continued Strength in Operations

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