Aimia (TSE:AIM) executives told investors the company’s transformation into what it described as a “useful permanent capital vehicle” advanced in the fourth quarter of 2025, with management highlighting solid operating results in its core businesses, a higher cash balance, and progress toward a planned divestiture of its specialty chemicals holding, Bozzetto.
On the company’s March 24, 2026 earnings call, Executive Chairman Rhys Summerton said Aimia achieved its guidance for the year and entered 2026 with momentum, pointing to a definitive agreement to sell Bozzetto. Summerton said the pending sale and expected net proceeds are central to Aimia’s plan to enhance shareholder value by making “accretive investments in undervalued companies.”
Fourth-quarter results reflected mixed operating trends
Leonard said consolidated revenue declined in Q4 2025 due to lower volumes and pricing pressure in both core businesses, though gross profit margins held due to improvements in mix. As a result, adjusted EBITDA was down CAD 0.6 million year-over-year for the quarter, according to management’s prepared remarks.
Leonard also cited several items affecting quarterly profitability and costs:
- SG&A increased in part due to CAD 2.9 million of costs related to the Bozzetto transaction.
- SG&A also included CAD 1.2 million tied to a litigation settlement with a former company executive related to a claim launched in 2020.
- Net loss included a non-cash goodwill impairment charge of CAD 14 million at Cortland.
Leonard said that excluding the one-time Bozzetto transaction and litigation settlement costs, SG&A declined year-over-year.
Bozzetto delivered higher EBITDA margin despite volume pressure
In Aimia’s specialty chemicals holding Bozzetto, Leonard reported Q4 2025 revenue of CAD 84.2 million, down 1.9% from the prior year. On a constant-currency basis, he said revenue decreased 9.8%.
Management attributed the year-over-year decline largely to lower volumes in Bozzetto’s textile and water solutions sectors, including lower textile solution sales into Bangladesh due to political instability and pricing pressure from Chinese competitors in water solutions. Leonard said weakness in those areas was partially offset by improved pricing and product mix and by the dispersion solution sector, where Bozzetto focused on growing sales of agrochemical and plasterboard solutions.
Bozzetto generated adjusted EBITDA of EUR 15 million in Q4 2025, representing a 17.8% margin, compared with EUR 13.4 million and a 15.6% margin in the same period last year.
Cortland revenue fell amid tariffs and lapping prior-year projects
Cortland, Aimia’s other core holding, posted Q4 2025 revenue of CAD 34.3 million, down 17% year-over-year. Leonard said results were impacted by unfavorable market conditions, including the effects of U.S. tariffs on global trade, particularly affecting marine and shipping rope sales.
He also noted that the comparative quarter last year benefited from strong project sales in North America within the offshore energy sector that did not recur this year. On a constant-currency basis, Leonard said Cortland’s revenue declined by CAD 7 million, or 16.9%.
Lower revenue and higher SG&A costs contributed to a decline in adjusted EBITDA to CAD 4.1 million. Leonard said SG&A rose in part due to increased compensation and benefits as Cortland expanded its sales force and strengthened customer relationships, though reduced sales volumes helped lower some selling expenses.
After quarter end, Cortland appointed Wolfgang Wandl as CEO. Leonard said management was optimistic the new CEO would help the business reach its potential through a focus on growing sales and operational excellence.
Cash balance increased; Bozzetto sale expected to reshape liquidity
Aimia ended 2025 with CAD 109 million in cash, up from CAD 106 million at the end of the third quarter. Leonard highlighted key drivers in the quarter, including CAD 19.4 million of cash flow from operations and an CAD 8.8 million tax refund from Revenu Québec related to a tax audit of a former subsidiary.
He also detailed major cash uses during the quarter, including:
- CAD 6.9 million of interest payments on the company’s 9.75% senior notes
- CAD 3.6 million of common share buybacks (including tax)
- CAD 7.9 million of principal and interest payments on Bozzetto’s credit facilities
- CAD 5 million of capital expenditures
Looking ahead, Leonard said liquidity in coming months is expected to be impacted by proceeds from the Bozzetto divestiture, which the company expects to close at the end of Q2 2026 pending final regulatory approvals. He said Aimia expects net proceeds in the range of CAD 265 million to CAD 271 million, which would be partially offset if the company redeems its senior notes. Leonard said redeeming all notes would require CAD 142.6 million.
Leonard added that Aimia has more than CAD 500 million of capital loss carryforwards as of December 31, 2025 and does not anticipate paying taxes on the gain from the Bozzetto transaction.
The company also described a hedging strategy implemented in February to reduce foreign exchange volatility, stating it hedged approximately 50% of expected net euro proceeds into Canadian dollars—an amount management said essentially corresponds to the par value of the senior notes if fully redeemed.
On a pro forma basis as of December 31, incorporating estimated sale proceeds, subtracting CAD 50 million of cash held by Bozzetto, and assuming CAD 143 million used to redeem the senior notes, Leonard said Aimia would have approximately CAD 185 million of cash, subject to closing adjustments.
Strategy: lower holdco costs, buybacks, and redeploy capital
Management said 2025 results were broadly in line with prior guidance. Leonard noted the company had forecast combined adjusted EBITDA from Bozzetto and Cortland of CAD 88 million to CAD 95 million; the businesses generated CAD 85.6 million. At the holding company level, Aimia targeted CAD 9 million of costs but reported CAD 7.7 million after implementing cost reductions including lower audit and professional fees, lower insurance costs, and decreased director fees. With the planned Bozzetto sale, Leonard said Aimia is not providing 2026 guidance.
Summerton said the company’s near-term priorities include closing the Bozzetto transaction in Q2, then—within 30 days of closing—making an offer to repurchase all senior notes at par plus accrued interest, as required under the indenture. He noted noteholders would also have the option to keep the notes until maturity in January 2030.
Summerton emphasized that redeeming the 9.75% senior notes could reduce annual cash interest needs, stating the notes consume CAD 13.9 million of cash annually at the holding company. He said early redemption would result in cumulative cash savings to maturity of approximately CAD 56 million if all notes are redeemed.
On capital deployment, Summerton said Aimia has identified a number of target companies but did not provide specifics. He said the company is looking for controlling positions in businesses with strong, dependable cash flows, net cash balance sheets, and relative undervaluation supported by strong underlying assets.
In the Q&A, Summerton said Aimia is also working to monetize smaller remaining assets, including redeeming certain investments to bring cash to the holding company, and discussed an investment in China that he said is “trending in the right direction” but not ready to be sold.
Asked about tax loss carryforwards, Summerton said rules vary by jurisdiction and that “change in control” is a key consideration as Aimia deploys capital. He also pointed to the use of capital losses in connection with the Bozzetto sale as an example of mitigating tax costs.
On geography, Summerton said Aimia will look for value globally, but currently views the U.K. as offering attractive risk-reward and “tremendous value.” He described a “stage one” focus on markets with cheaper valuations and high-quality companies, followed by a “stage two” roadmap that could include Canada and the U.S., particularly to utilize tax losses, depending on valuation conditions.
Aimia also highlighted continued share repurchases under its normal course issuer bid (NCIB). Summerton said the company spent more than CAD 3.6 million on buybacks in the fourth quarter at an average price of CAD 2.80 per share, and said the company reduced its share count by over 10% through February 28, 2026. He said the company intends to continue buybacks until current approval expires in June and plans to seek renewal at the next annual meeting.
Summerton said Aimia has a listing on the Johannesburg Stock Exchange and is pursuing one additional listing in another market. The company said its annual general meeting will be held in Toronto on May 13.
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.
