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Written by Christopher Liew, CFA at The Motley Fool Canada
The stock market could face a rougher patch in 2026 compared to last year. Analysts predict that escalating geopolitical tensions will add to the persistent trade uncertainty and disrupt the already fragile global economy.
From an investment perspective, high-flying tech stocks might have to take a backseat to companies with strategic resilience. One Canadian stock that is ready to rise is Exchange Income Corporation (TSX: EIF) in the industrial sector.
Exchange Income Corporation may be considered an all-weather stock due to its recession-resistant niche market. The $5.4 billion acquisition-oriented company has two core business segments: Aerospace & Aviation and Manufacturing. Its strong fundamentals stem from the long-standing acquisition strategy, essential aviation services, and specialized manufacturing.
The company has, for years, successfully identified and acquired profitable, well-established companies, primarily in the aerospace and defence sectors. Their common denominators are: strong management teams, steady cash flows, and visible opportunities for organic growth.
Today, EIC’s empire or diversified family of companies and subsidiaries continues todeliver dependable returns regardless of market conditions.
EIC will release its fourth-quarter (Q4) and full-year 2025 financial results on Tuesday, February 24, 2026. Nonetheless, the company has broken several records in Q3 2025 alone. In the three months ended September 30, 2025, total revenue and net earnings rose 35% and 23% year-over-over to $960 million and $69 million, respectively. Both figures are quarterly records.
In the first three quarters of 2025, free cash flow (FCF) increased 26% to $116 million from a year ago. Mike Pyle, CEO of EIC, said the high number of customer inquiries in the Manufacturing segment is a positive indicator of the business’s prospects. Thus, maintaining sufficient liquidity to support organic growth initiatives or acquisitions when they arise is a top priority.
EIC is one of the select few TSX companies that pay monthly dividends. The industrial stock has never missed a monthly cash payout since January 2014, including dividend hikes over 20 years. If you invest today, the share price is $97.17, with a corresponding dividend offer of 2.85%.
On January 26, 2026, EIC announced the closing of a new, more flexible $3.5 billion credit facility extended by a syndicate of lenders. The loan term is four years. Pyle said, “The successful completion of this enhanced credit facility furthers the transformation of the corporation’s capital structure that has been ongoing for more than a year.”
Also, the redemption of all outstanding convertible debentures and conversion into equity has reduced the company’s leverage and de-risked the stock.
Pyle is excited about EIC’s future. In addition to the increased liquidity or firepower to acquire high-quality businesses, Canada’s nation-building initiatives are growth catalysts. The company has positive exposure to defence, critical minerals, resource development, transmission, and distribution modernization.
EIC expects the public and private financing to drive merger and acquisition activity in 2026 across the sectors mentioned. “Given the focus on economic nationalism, EIC is at the centre of several exciting trends,” Pyle added. The stock’s surge through 2026 is inevitable.
The post 1 Canadian Stock Ready to Rise in 2026 appeared first on The Motley Fool Canada.
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Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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