Record Results Headlined by a Fourth Quarter 62% increase in Earnings Per Share for Exchange Income Corporation Driven by Strong Foundations and Accelerating Growth

Executive Summary

• Exchange Income Corp. reported record FY 2025 results: Revenue $3.3 bn (+23%), Adjusted EBITDA $754 m (+20%), Adjusted Net Earnings $196 m (+33%) and Free Cash Flow $541 m (+32%).
• Q4 2025 also set new records with Revenue $930 m (+35%) and Adjusted EBITDA $216 m (+30%).
• Completed capital‑structure simplification (redeemed all convertible debentures), extended unsecured credit facility to $3.5 bn, and received an investment‑grade corporate rating.
• Announced post‑year‑end acquisitions: Mach2 (Aircraft Sales & Leasing) and the extension/expansion of the commercial agreement with Air Canada; highlighted strategic impact of Canadian North acquisition.

Key Details

• FY 2025 Financial Highlights – Revenue $3,277.5 m; Adjusted EBITDA $754.4 m; Net Earnings $167.5 m; Adjusted Net Earnings $195.5 m; Free Cash Flow $541.3 m; Free Cash Flow less Maintenance CapEx $239.1 m.
• Q4 2025 Financial Highlights – Revenue $929.5 m; Adjusted EBITDA $216.4 m; Net Earnings $51.6 m; Adjusted Net Earnings $58.4 m; Free Cash Flow $164.9 m; Free Cash Flow less Maintenance CapEx $68.0 m.
• Capital Structure – Last tranche of convertible debentures redeemed Dec 2025; pro‑forma leverage at 15‑year low of 2.73×.
• Credit Facility – Expanded to $3.5 bn, converted from secured to unsecured, providing greater flexibility for future financing.
• Rating Upgrade – Achieved investment‑grade corporate credit rating after year‑end; enables potential fixed‑rate bond issuance to fund growth and acquisitions.
• Acquisitions & Agreements – Completed acquisition of Mach2 (post‑year‑end) to broaden Aircraft Sales & Leasing into narrow‑body/wide‑body aftermarket parts; extended commercial agreement with Air Canada; earlier 2025 acquisition of Canadian North integrated, adding lift capacity, Arctic surveillance capabilities and synergies across business lines.
• Growth Capital Expenditures – Initiated construction of a second composite mat plant in Saltillo, Mississippi (expected operational mid‑to‑late 2027). Completed delivery of second ISR aircraft for UK Home Office; slated to receive 12 King Air aircraft for BC medevac contract by mid‑2026.
• Dividend – Declared the 18th dividend increase since inception; dividends $139.9 m (+11% YoY).
• Guidance 2026 – Adjusted EBITDA forecast $825–$875 m, with bias toward upper end due to Mach2 acquisition and expanded Air Canada agreement.
• Conference Call – Management call scheduled for Wed Feb 25 2026 at 8:30 am ET (dial‑in details provided).

Notable Quotes

• Mike Pyle, CEO: “2025 was an incredibly successful year…record financial metrics and strategic initiatives position EIC for long‑term growth.”
• Adam Terwin, Chief Corporate Development Officer: “The Mach2 acquisition expands our Aircraft Sales & Leasing business into the world’s largest aftermarket parts segments…”

All amounts are in Canadian dollars unless otherwise noted.