Western Investment Company Reports First Quarter 2026 Results and Announces Executive Personnel Changes

Executive Summary

• The Western Investment Company of Canada reported Q1 2026 net income of $12.5 million ($0.08 per share), a significant turnaround from a net loss of $1.0 million in Q1 2025.
• The quarter was driven by the sale of the company's investment in GlassMasters Autoglass, which closed on February 2, 2026, generating $23.3 million in net proceeds and a $14.4 million gain on sale.
• Key subsidiaries showed varied but generally positive performance, with Fortress Insurance seeing a 33% increase in revenue and Golden Health Care reporting 7% revenue growth.

Key Details

• GlassMasters Autoglass Divestiture:
  • Transaction closed: February 2, 2026.
  • Net proceeds: $23.3 million.
  • Gain on sale: $14.4 million (representing approximately 2.5x the carrying value).
• Consolidated Financial Results (Q1 2026 vs. Q1 2025):
  • Insurance revenue: $9.3 million (up from $8.2 million).
  • Net income: $12.5 million (compared to a net loss of $1.0 million).
  • Net income per common share: $0.08 (compared to a loss of $0.01).
  • Income from equity-accounted investments: ($1.3 million) loss (compared to $0.3 million loss).
• Fortress Insurance Performance:
  • Insurance revenue: $8.8 million (up 33% year-over-year).
  • Trailing 12-month loss ratio: 50.8% (improved from 52.1%).
  • Trailing 12-month expense ratio: 45.7% (improved from 50.0%).
  • Net income: $0.3 million (compared to a net loss of $0.1 million).
  • Total investment portfolio (including cash): $34.8 million at March 31, 2026.
• Subsidiary Updates:
  • Foothills Creamery: Revenue of $6.0 million (down from $7.0 million); EBITDA improved to $0.5 million (from $0.2 million) due to higher-margin product mix and lower input costs.
  • Golden Health Care: Revenue increased 7% to $2.9 million; EBITDA increased to $0.73 million (from $0.65 million).
• Management & Equity Grants:
  • New appointments: Mackenzie Clark (Chief Legal Officer), Sai Ahmed (Chief Operating Officer), and Vic Bertrand (Executive Vice President and Chief Development Officer).
  • Restricted Share Units (RSUs): Each new appointee was granted 510,204 RSUs priced at $0.98 per share, with a 5-year/10-year vesting schedule.