Aimia TSE: AIM said its first quarter was marked by progress on the planned sale of specialty chemicals business Bozzetto, continued efforts to reduce holding company costs and a weaker sales performance at Cortland International.
On the company’s first-quarter 2026 earnings call, Executive Chairman Rhys Summerton said Aimia had a “particularly busy” quarter, highlighted by the announced Bozzetto divestiture, CAD 1.4 million in share buybacks and work identifying potential investment targets. He said that after quarter-end, Aimia received the regulatory approvals needed to complete the Bozzetto transaction, which the company expects to close by the end of May.
“Combined with these efforts, we are now in a position to eradicate the Holdco debt, in particular reference to the notes, and begin to make investments in undervalued companies,” Summerton said.
Bozzetto Sale Expected to Close by End of May
President and CFO Steven Leonard said Aimia is presenting Bozzetto as discontinued operations because of the pending sale, meaning Bozzetto’s contributions were excluded from most of the company’s financial highlights except cash flow from operations and net earnings.
Leonard said the sale is expected to generate approximately CAD 267 million in net proceeds at closing. He added that Aimia does not anticipate paying taxes on the gain from the transaction because it had more than CAD 500 million of capital tax carryforwards as of March 31.
Aimia said it intends to use proceeds from the Bozzetto transaction to pursue investments in undervalued companies, with an eventual goal of acquiring controlling interests. The company also plans to make an offer to redeem its senior notes after the Bozzetto closing, as required under the indenture agreement triggered by the sale.
Summerton said the offer to noteholders will be made at par value, plus accrued interest, and is expected in late May or early June. Leonard said Aimia expects to use CAD 146.1 million toward redemption of the senior notes, including unpaid and accrued interest as of March 31. However, he noted that some holders may choose to keep their notes until maturity, which could leave Aimia with a higher pro forma cash position.
Cortland Revenue Declines Amid Geopolitical Pressures
Cortland generated CAD 32.7 million in first-quarter revenue, down 19.7% from a year earlier, Leonard said. On a constant currency basis, revenue declined 16%.
Leonard attributed the decline to lower sales volume, particularly in the marine and shipping sector, the timing of sales orders and increased selling pressures tied to geopolitical developments in the Middle East. He said the decline was partly offset by increased sales in India within the fishing and aquaculture sector.
Cortland’s adjusted EBITDA was CAD 4.5 million, down 16.7% from CAD 5.4 million a year earlier. Leonard said the decline reflected lower sales volume and lower gross profit, partly offset by CAD 1 million in lower SG&A expenses. The SG&A reduction was largely due to lower selling expenses from reduced sales volume and currency gains on trade balances.
Aimia announced a leadership change at Cortland during the quarter, naming Wolfgang Wandl as CEO. Leonard said Wandl has more than 30 years of international business experience and will oversee day-to-day operations, focusing on global sales, product innovation, customer partnerships and expansion in key markets.
Summerton said Cortland’s previous management structure was “clumsy,” with senior leaders not operating under one roof. He said Wandl’s primary mandate will be improving free cash flow generation and expanding Cortland’s footprint.
“Essentially, what we want is manufacturing out of India and then a global distribution business across the rest of the world,” Summerton said, adding that Cortland could potentially serve as a platform company for future capital deployment and selective acquisitions.
Cash Position and Cost Reductions
Aimia ended the quarter with CAD 100.3 million in consolidated cash, down from CAD 109 million at the end of December 2025. Leonard said the total included CAD 57.7 million of Bozzetto cash and cash equivalents, even though Bozzetto’s liquidity was classified as cash in assets held for sale.
Key cash outflows in the quarter included CAD 5.9 million in repayments of other borrowings, CAD 2 million in principal repayments on Bozzetto senior credit facilities, CAD 2.2 million of capital expenditures, CAD 1.4 million in common share buybacks and CAD 0.7 million in preferred share dividends. These outflows were partly offset by CAD 3.8 million of cash flow from operations.
Leonard said cash flow from operations included a CAD 5.2 million lump-sum payment to a former executive as part of a settlement agreement related to a claim initiated in 2020.
Adjusted EBITDA in the quarter was relatively flat compared with the prior year, Leonard said, as lower operating profit was offset by a CAD 2 million decline in SG&A expenses. He said the reduction reflected holding company cost savings in areas such as insurance, rent and professional services, along with some currency gains at Cortland. Net earnings improved by CAD 3.4 million, helped by reduced SG&A expenses and earnings from Bozzetto.
Second-Half Outlook and Capital Deployment
Aimia management said it expects Cortland to improve in the second half of the year, subject to an easing of geopolitical tensions in the Middle East. In response to a question from Rob Byde, Head of Industrials Research at Zeus Capital, Leonard said expected drivers include stronger seasonal demand in India’s fishing market and progress in aquaculture, including cage deliveries in Latin America.
Leonard said the company is also working to mitigate higher input costs tied to oil prices, since polymers are a raw material for Cortland. He said Aimia has looked at applying surcharges on some revenue orders and is working with customers to manage the impact of elevated pricing.
Summerton said Aimia’s capital allocation framework includes three “buckets” of value: cash remaining after settling the notes, Cortland as a cash-generative operating business and the company’s tax losses. He said all three could play a role in future capital allocation, including potential acquisitions by Cortland and efforts to monetize tax losses.
Aimia also expects to renew its normal course issuer bid in June, pending regulatory approval. Summerton said the company anticipates being permitted to repurchase approximately 5 million shares over the next 12 months through June 2027. He said the company intends to complete the buyback, subject to blackout periods, share price levels and other potential transactions.
Summerton also said Aimia expects to pursue a U.K. listing later in the summer, subject to meeting listing qualifications, most likely on the AIM market. He said the company’s longer-term focus remains on net book value and growth in net book value per share.
About Aimia TSE: AIM
Aimia Inc TSX: AIM is a holding company that makes long-term investments in private and public businesses through controlling or minority stakes. We target companies with durable economic advantages evidenced by a track record of substantial free cash flow generation over complete business cycles, strong growth prospects, and guided by strong, experienced management teams. Headquartered in Toronto, Canada, Aimia is positioned to invest in any sector, wherever a suitable opportunity can be identified worldwide.
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