Exchange Income Corp T.EIF.DB.J

Primary Symbol: T.EIF Alternate Symbol(s): EIFZF | T.EIF.DB.L | T.EIF.DB.M | T.EIF.DB.K

Industrials Airlines

Exchange Income Corporation is a Canada-based diversified acquisition-oriented company. The Company operates through two segments: Aerospace & Aviation and Manufacturing. The Aerospace & Aviation segment is comprised of three lines of business: Essential Air Services, Aerospace, and Aircraft Sales & Leasing. Its Essential Air Services includes both fixed wing and rotary wing operations. Aerospace includes its vertically integrated aerospace offerings that provide customized and integrated special mission aircraft solutions primarily to governments across the globe. Aircraft Sales & Leasing includes aftermarket aircraft, engine and parts sales and aircraft and engine leasing, along with aircraft management services. The Manufacturing segment is comprised of three lines of business: Environmental Access Solutions, Multi-Storey Window Solutions and Precision Manufacturing & Engineering. The Company also focuses on portable hydronic (glycol-based) climate-controlled equipment.

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Exchange Income Corp

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Post by retiredcfon Oct 04, 2024 9:19am

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Post# 36252986

RBC 2

October 3, 2024

Exchange Income Corporation
Wins air ambulance contract for Newfoundland and Labrador

TSX: EIF | CAD 52.87 | Outperform | Price Target CAD 65.00

Sentiment: Positive

Our view. EIF today announced its subsidiary PAL Aerospace was selected to provide integrated fixed-wing and rotary air ambulance services for Newfoundland and Labrador and we caught up with management following the release. While the deal in itself should be a positive to earnings post-2024, we also see a benefit to margins as Exchange is looking to redeploy certain aircraft from its BC contract (where the company was required to purchase new aircraft) and we therefore view Newfoundland as a potential landing spot for the BC planes. Financial details were not provided but we estimate the contract is likely slightly smaller to the same size and tenor as the Manitoba contract. Key is the announcement continues the momentum of recent contract wins in air ambulance, and therefore positions Exchange well for the NWT contract, though we are cognizant it is not the incumbent. Overall, another favourable win for Exchange, and we reiterate Exchange as a top idea in aerospace.

What happened? PAL Aerospace and Air Borealis, in partnership with Medavie Health NL will be responsible for the design, management, and operation of integrated fixed-wing and rotary air ambulance services for the Province of Newfoundland and Labrador.