Upgrading to Outperform on Multi-Year and Multi-Segment Runway of Opportunity

研报英文原文证据摘录

Upgrading to Outperform on Multi-Year and Multi-Segment Runway of Opportunity

0↑ $4,499,841↑

Multi-year and multi-segment runway of opportunity. We believe that for continued

EBITDA $867,349↑ $971,630↑ $1,085,815↑

share price performance, EPS needs to take over with multiples having already run.

We see a clear path of opportunities and catalysts including (1) growing demand for EPS $4.45↑ $5.02↑ $5.61↑

Aerospace/ISR solutions; (2) expanded transactable universe for Aircraft Sales & Leasing EV $8,708,815↑ $10,414,035↑ $11,499,438↑

following Mach2/Canadian North acquisitions; (3) increased Essential Air demand in Consensus Estimates

Canada’s North; (4) Environmental Access momentum with new U.S. plant and long- 2026E 2027E 2028E

linear projects (T&D and pipeline) in Canada; and (5) growing demand for Precision

EPS $4.14 $5.05 $5.46

Manufacturing and Engineering across telecommunications, data centers, and defense

industries. We expect Multi-Storey Window Solutions to remain challenged but view Valuation

conditions as at a trough. 2026E 2027E 2028E

Upgrade is not without risk. EIC has historically leaned on equity as a source of P/E 23.4x 20.8x 18.6x

financing with fully diluted share count increasing on average by 8.9% over the past EV/EBITDA 8.7x 7.8x 6.9x

ten years. With the maturing of the balance sheet, we hope that equity financing will QTR. EPS Q1 Q2 Q3 Q4

become a smaller source of go-forward funds and that share count dilution becomes 2026E $0.59a $1.20 $1.49 $1.16

more limited. Likewise, with valuation multiples having significantly expanded, the

2027E $1.08 $1.28 $1.49 $1.18

margin of safety is lower and shares are more susceptible to negative events. We view

the number of growth opportunities as key to our upgrade. 2028E $1.22 $1.44 $1.65 $1.31

Key Changes