Exchange Income (EIF-T)

Beat on aviation in Q3, raised 2025 guidance on the back of their latest acquisition of Spartan. Lumpy, not as steady a compounder as BIP.UN. Always kind of cheap, now 13x PE for 2026 and growing 17%. Nice dividend, which will probably be boosted; payout ratio is fine. 

Not for everyone. Small cap that gets forgotten, so that's a good reason to own.

Holding company, without much integration between assets. Not much value creation from acquiring and running assets. Wouldn't expect it to outperform the market by a lot. Fair value right now, a hold.

Getting into intelligence and surveillance globally. Manufacturing is weak now due to macro environment, but sees it turning around. Likes it for yield and growth.

EPS of 80c missed estimates of 85c; Revenue of $660.5M missed estimates of $678.1M. EBITDA of $157M beat estimates of $152.8M. Revenue rose 5.3%. EBITDA rose 6.8%. Guidance was largely maintained. The manufacturing segment is seeing some customer wariness and less bookings. It is a cyclical segment and we would not really consider this a red flag to the company. The stock is cheap and the payout at 61% (up from 57%) remains OK. 
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Nice little name that everyone forgets about. Aviation, industrial. Q1 strong, some manufacturing weakness. Reiterated full-year guidance. Nice organic growth. Nice dividend, low payout ratio, will probably increase dividend. Improving balance sheet. 14% growth, trading ~10x. Cheap, overlooked, some dividend growth. Can buy here.

It is a good name and operates in rural and northern areas in Canada. It is the only airline in the North Pacific region. It operates in niche businesses and is like a mini-monopoly. It has a good CEO and she wants to see if this applies to the whole team behind the CEO. Has a 5.7% yield

Good business with strong fundamentals. Continues to win large government contracts. Confident stock will perform over the long term. Would investors to hold company for the long term. 

It is unique in the commercial flying business in Canada. It has a very good track record, but there doesn't seem to be a catalyst for growth going forward. He owns it in their income portfolio since its great rate of return means that shareholders are participating in its profitability.

Really well run, proven by its track record. He needs to get comfortable with the way the company does different deals in diversified businesses, leaving management teams in place. Underlying businesses are pretty solid. Sources pilots from First Nations communities. He doesn't yet fully understand the dynamics of northern aviation. Stock doesn't fall too often, and he's looking at it.

Still likes it. They guided for 2024, about 5% below analysts' estimates, due to changes in contracts in their medevac business coming on late. Doesn't bother him, though it effected shares. Likes their transparency and sees this as a buying opportunity. They just landed a contract with Air Canada in eastern Canada. RBC just added it to their conviction list.

An historic compounder that pays a good dividend. They buy businesses, invest in them and grow them organically. Done very well this way. But shares have sold off and haven't recovered as he expected. Maybe their deals with airlines are a factor. Fine managers over 20 years ago.

We can't make short term predictions with any degree of accuracy, but EIF rose 8% with the November rally (plus a 21c dividend). It also just raised its dividend 4.8%. Much of course will depend here, and it will follow the market, but it is not typically the type of stock that 'spikes' higher. We would be OK with a tax loss/rebuy strategy with AD.UN as a short term proxy. 
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EPS of $1.09 missed expectations of $1.19 and revenues of $687.67M beat estimates of $660.45M. Revenue increased by 17% and Adjusted EBITDA grew by 12%. Its free cash flow was a record $117M, but net earnings per share declined due to the bought deal capital raised in Q2. Its bought deal offering is aimed at financing future growth capital expenditures, and its acquisitions have so far been deemed to be accretive. EIF raised its dividend by $0.12 to a new level of $2.64 per share. Most metrics were quite strong, except when looking at a per share basis, which highlights its rising share count. Management provided guidance of Adjusted EBITDA between $600M and $635M in 2024, with further growth anticipated in 2025 as contracts mature. 

Overall, the company continues to grow its dividends, and while the earnings miss has not been well-received by investors, we think its business is heading in the right direction and it continues to make value-add acquisitions. We consider it buyable and continue to like the stock for higher-risk income and growth. 
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Leader in Canadian aerospace, interesting manufacturing. Aerospace is in niche markets, without much competition. Medivac, pilot schools, government contracts for maritime surveillance. Expects huge revenue and profit growth when contracts renew in 2025. Yield is 5.44%, dividend should grow.

Surprised that share price is lower. Very successful in recent company performance. Great company with great management team. Will continue to hold.