Q1 2025-26 Quarterly Financial Report

Condensed Interim Financial Statements (Unaudited)

June 30, 2025

Condensed Interim Statement of Financial Position 
(Unaudited)

(In thousands of Canadian dollars) June 30, 2025 March 31, 2025
Assets
Current assets
Cash  $              21,740  $            102,215
Trade and other receivables (note 4)                142,431                  80,371
Inventories                  17,724                  18,776
Prepaids                    8,063                    8,603
Derivative financial assets                        12                      855
               189,970                210,820
Non-current assets
Property and equipment (note 5)                385,120                382,154
Intangible assets (note 6)                  12,290                  12,879
Right-of-use assets (note 7)                  15,899                  16,664
Employee benefits asset (note 8)                  73,523                  64,809
Derivative financial assets -                        59
               486,832                476,565
Total assets  $            676,802  $            687,385
Liabilities and Equity
Current liabilities
Trade and other payables   $            167,252  $            182,949
Holdbacks                         35                        35
Lease liabilities (note 7)                    3,371                    3,263
Deferred government funding related to operating expenses (note 10)                  25,787                  27,379
Derivative financial liabilities                      637                        58
               197,082                213,684
Non-current liabilities
Lease liabilities (note 7)                  14,882                  15,738
Deferred government funding related to capital expenditures (note 10)                392,089                389,690
Employee benefits liability (note 8)                  22,374                  22,445
Deferred revenue - screening services - other                    4,571                    4,571
               433,916                432,444
Equity
Accumulated surplus                  45,804                  41,257
Total liabilities and equity  $            676,802  $            687,385

Contingencies (note 9) and contractual arrangements (note 13)
The accompanying notes are an integral part of these condensed interim financial statements.

Condensed Interim Statement of Comprehensive Income (Loss)
(Unaudited)

(In thousands of Canadian dollars) Three Months Ended June 30
2025 2024
Expenses
Pre-Board Screening   $            175,060  $            157,222
Hold Baggage Screening                  46,250                  40,983
Non-Passenger Screening                  41,103                  36,855
Restricted Area Identity Card Program                    1,067                    1,060
Corporate services                  15,032                  13,519
Total expenses (note 11)                278,512                249,639
Other expenses
Net loss (gain) on fair value of derivative financial instruments                    1,481                     (147)
Finance costs                      169                      177
Foreign exchange gain                     (219)                         (9)
Total other expenses                    1,431                        21
Financial performance before revenue and government funding                279,943                249,660
Revenue
Finance income                      735 902
Miscellaneous income                        18 2
Total revenue                      753                      904
Government funding
Parliamentary appropriations for operating expenses                259,858                234,645
Amortization of deferred government funding related to capital expenditures                  13,008                  11,041
Parliamentary appropriations for lease payments                      978                      777
Total government funding (note 10)                273,844                246,463
Financial performance  $               (5,346)  $               (2,293)
Other comprehensive income
Item that will not be reclassified to financial performance
Remeasurement of defined benefit plans (note 8)                    9,893                    4,130
Total comprehensive income (loss)  $                 4,547  $                 1,837

The accompanying notes are an integral part of these condensed interim financial statements.

Condensed Interim Statement of Changes in Equity
(Unaudited)

For the three months ended June 30:

(In thousands of Canadian dollars) Accumulated surplus
Balance, March 31, 2025  $              41,257
 Financial performance                    (5,346)
 Item that will not be reclassified to financial performance 
 Remeasurement of defined benefit plans (note 8)                     9,893
Balance, June 30, 2025  $              45,804
Balance, March 31, 2024  $              36,901
Financial performance                   (2,293)
Item that will not be reclassified to financial performance
Remeasurement of defined benefit plans (note 8)                    4,130
Balance, June 30, 2024  $              38,738

Condensed Interim Statement of Cash Flows
(Unaudited)

(In thousands of Canadian dollars) Three Months Ended June 30
2025 2024
Cash flows provided by (used in)
Operating activities
Financial performance  $               (5,346)  $               (2,293)
Items not involving cash
Depreciation and amortization (note 11)                  13,870                  11,731
Change in fair value of financial instruments at fair value through profit and loss                     1,481                     (147)
Change in net employee benefits asset/liability                     1,108                          2
Amortization of deferred government funding related to capital expenditures (note 10)                 (13,008)                 (11,041)
Net change in working capital balances (note 15)                 (79,549)                    6,513
                (81,444)                    4,765
 Investing activities 
Parliamentary appropriations received for capital funding (note 10)                  15,022                    4,223
Purchase of property and equipment                 (13,156)                   (4,199)
Purchase of intangible assets                       (74)                       (81)
                   1,792                       (57)
 Financing activities 
Lease principal payments                     (823)                     (604)
                    (823)                     (604)
 (Decrease) increase in cash                  (80,475)                    4,104
 Cash, beginning of period                 102,215                    9,955
 Cash, end of period   $               21,740  $               14,059

The accompanying notes are an integral part of these condensed interim financial statements.

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