EIF: Q1 Above; Guide Raised; $1B EBITDA in Sight

Research evidence excerpt

EIF: Q1 Above; Guide Raised; $1B EBITDA in Sight

Q1 Q2 Q3 Q4

operations should benefit from long linear projects commencing late 2025 668.3A 719.9A 959.7A 929.5A

2026 / early 2027. Furthermore, we believe windows should stabilize. 2026 866.6A 890.1E 1,020.3E 990.7E

This combined with an improving industrial backdrop (PMI and ABI both Prev. 776.3E 836.4E 1,030.9E 998.5E

>50) points to upside to consensus Manufacturing estimates in our view. 2027 922.1E 946.8E 1,085.6E 1,053.4E Prev. 815.1E 878.2E 1,082.4E 1,048.4E

Aerospace also presents multiple growth vectors through the Greenland EBITDA, Adj

contract, potential UK Home Office renewal, expanding ISR opportunities 2025 130.1A 177.2A 230.6A 216.4A

across Canada and Europe, and increasing passenger loads in Nunavut 2026 166.1A 219.8E 257.5E 236.9E

driven by federal northern investments. All that to say, our estimates Prev. 161.1E 218.4E 255.0E 240.6E 2027 184.5E 242.0E 283.4E 260.9E

do not include any future M&A or unannounced contracts wins, with Prev. 174.0E 234.4E 273.9E 258.7E

management noting on the call it is in discussions for both, and we

therefore see line of sight to >$1B in EBITDA as early as next year. Note:definition.Free Cash Flow shown above uses the company's FCF less maintenance capex

All values in CAD unless otherwise noted. • 2026 guidance raised. Management increased 2026 guidance to the Priced as of prior trading day's market upper end of $825MM to $875MM (from the mid to upper end of the close, EST (unless otherwise noted).

range), ahead of consensus $868MM coming into the quarter. Key here

is that we still see the increased guide as conservative given the Q1 result

and reflecting several Aerospace opportunities that are progressing

ahead of our prior expectations (Cdn. North, B.C.