Figma Shares Indicated To Open $105/$110
Introduction & Market Context
Aimia Inc. (TSX:AIM) presented its Q1 2025 financial results on May 13, 2025, highlighting significant improvements in profitability and progress on its strategic transformation. The company, which closed at $2.69 on May 12 (up 3.46%), is executing on its plan to become a permanent capital company while reducing holding company costs and narrowing the share price discount to net asset value.
The presentation, delivered by Executive Chairman Rhys Summerton and President & CFO Steve Leonard, emphasized the company’s sustained momentum from recent quarters, with limited impact from tariffs and significant gains from capital structure optimization.
Quarterly Performance Highlights
Aimia reported substantial improvements across key financial metrics for Q1 2025, with consolidated revenue increasing 6.3% year-over-year to $129.8 million and Adjusted EBITDA nearly tripling to $19.7 million from $6.7 million in Q1 2024.
The company’s earnings per share reached $0.55, a dramatic improvement from the $0.09 loss per share in the prior-year period, primarily driven by a $53.8 million gain from a Substantial Issuer Bid (SIB). Excluding this gain, EPS would have been negligible for the quarter.
As shown in the following consolidated financial highlights:
The improvement in key financial metrics was driven by a combination of factors, including core holding performance, reduced holding company costs, and favorable foreign exchange fluctuations. Notably, SG&A expenses decreased by 27.1% to $25.5 million, reflecting cost-cutting initiatives and a settlement with Aimia’s largest investor.
Detailed Financial Analysis
Bozzetto, one of Aimia’s core holdings, delivered modest revenue growth of 1.1% to $89.1 million in Q1 2025, while its Adjusted EBITDA increased 9.7% to $17.0 million. The revenue growth was largely attributed to positive foreign exchange impacts, while the EBITDA improvement stemmed from lower SG&A expenses.
The performance of Bozzetto over recent quarters is illustrated in the following chart:
Cortland International demonstrated even stronger performance, with revenue growing 19.7% to $40.7 million and Adjusted EBITDA surging 35% to $5.4 million compared to Q1 2024. This improvement reflected increased demand across multiple industries and the benefits of past investments in business transformation initiatives.
The quarterly progression of Cortland International’s financial performance is shown here:
Aimia ended Q1 2025 with $94.7 million in liquidity, a slight decrease from the $95.4 million reported at the end of Q4 2024. The cash waterfall chart below illustrates the key movements in the company’s cash position during the quarter:
The company generated $12.2 million in cash flow from operations, which was partially offset by capital expenditures of $3.8 million, share repurchases of $3.8 million through its Normal Course Issuer Bid (NCIB), and other smaller outflows.
Strategic Initiatives
Aimia is making significant progress on its strategic transformation into a permanent capital company. The company completed a Substantial Issuer Bid during Q1, resulting in a net gain of $53.8 million. This transaction involved exchanging 83.6% of preferred shares, with a net carrying value of $193.1 million, for convertible notes valued at $138.3 million.
The company continues to actively repurchase shares through its NCIB program, having purchased 60% of the available shares as of the presentation date, with plans to renew the program in June 2025:
A key focus of Aimia’s strategy is reducing holding company costs. Management has completed a thorough review of these expenses and identified numerous opportunities for savings, including director compensation, office rent, audit fees, software licenses, and professional services. The company’s goal is to reduce holding company costs to at or below 1.5% of its net asset value.
Aimia’s strategic roadmap outlines its transformation into a permanent capital company:
Forward-Looking Statements
Aimia is on track to meet its 2025 guidance, with year-to-date Adjusted EBITDA for Bozzetto and Cortland reaching $22.4 million against full-year guidance of $88-95 million. Holding company costs stand at $2.7 million year-to-date, well below the annual guidance of under $11 million.
The company’s progress against 2025 guidance is illustrated below:
Management expects the impact of tariffs on core holdings to be limited, supporting their confidence in meeting the full-year targets. The near-term focus will be on sustaining the performance of core holdings while continuing the transition to a permanent capital vehicle.
Aimia’s updated valuation metrics as of March 31, 2025, provide insight into the company’s financial position:
With $94.7 million in cash and marketable securities, $20.4 million in investments in non-core holdings, and significant tax losses carried forward ($1,010.3 billion), Aimia has substantial resources to execute its strategy of identifying undervalued companies, making equity investments, acquiring controlling interests, and utilizing its tax loss carry forwards effectively.
As Aimia continues its strategic transformation, investors will be watching closely for further progress on reducing holding company costs, narrowing the share price discount to NAV, and effectively allocating capital to drive long-term shareholder value.
Full presentation:
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