ECN Capital Reports US$0.05 in Adjusted Net Income per Common Share in Q4 2025

TORONTO, Feb. 26, 2026 /CNW/ - ECN Capital Corp. (TSX: ECN) ("ECN Capital" or the "Company") today reported financial results for the three-month period and year ended December 31, 2025.  

For the three-month period ended December 31, 2025, ECN Capital reported Adjusted net income applicable to common shareholders of $13.6 million or $0.05 per share (basic) versus $16.7 million or $0.06 per share (basic) for the previous three-month period and $4.4 million or $0.02 per share (basic) for the prior year comparable period.

Originations for the three-month period ended December 31, 2025 were $662.4 million, versus $826.8 million in the previous three-month period and $547.6 million for the prior year comparable period. Originations for the three-month period ended December 31, 2025 include $447.9 million of originations from our Manufactured Housing Finance segment and $214.5 million of originations from our Recreational Vehicle and Marine Finance segment.          

Managed Assets as at December 31, 2025 were $7.3 billion versus $8.2 billion as at September 30, 2025 and $6.9 billion as at December 31, 2024.

Adjusted EBITDA for the three-month period ended December 31, 2025 was $36.2 million versus $40.6 million for the previous three-month period and $24.1 million for the prior year comparable period. 

Operating Expenses for the three-month period ended December 31, 2025 were $35.8 million versus $34.0 million for the previous three-month period and $31.1 million for the prior year comparable period.

Net income attributable to common shareholders for the three-month period ended December 31, 2025 was $4.5 million versus net income of $11.2 million for the previous three-month period and net loss of ($3.9) million for the prior year comparable period.

Acquisition of ECN Capital Corp. led by Warburg Pincus LLC

"The company is actively engaged in obtaining the necessary approvals for the transaction and progress is tracking to closing early in the second quarter", said CEO Steve Hudson.

On November 13, 2025, the Company entered into a definitive arrangement agreement (the "Arrangement Agreement") to be acquired by Sinatra CA Acquisition Corp. (the "Purchaser"), a newly formed acquisition vehicle controlled by an investor group led by investment funds managed by Warburg Pincus LLC, in an all-cash transaction that values the Company at an enterprise value of approximately C$1.9 billion. Pursuant to the Arrangement Agreement, the Purchaser will acquire (i) all of the issued and outstanding common shares of the Company for C$3.10 in cash per common share, (ii) all of the issued and outstanding cumulative 5-year minimum rate reset preferred shares, Series C of the Company (the "Series C Preferred Shares") for C$26.00 in cash per Series C Preferred Share (plus all accrued but unpaid dividends thereon) and (iii) all of the issued and outstanding mandatory convertible preferred shares, Series E of the Company (the "Series E Preferred Shares"), of which Champion Homes, Inc. is the sole beneficial owner, for C$3.10 in cash per Series E Preferred Share (plus all accrued but unpaid dividends thereon) (the "Arrangement"). The Arrangement will be implemented by way of a statutory plan of arrangement under the Business Corporations Act (Ontario).

At a special meeting of the Company's shareholders held on January 20, 2026, the holders of common shares, Series C Preferred Shares and Series E Preferred Shares voted to approve the Arrangement. On January 22, 2026, the Company obtained a final order from the Ontario Superior Court of Justice (Commercial List) approving the Arrangement.

Completion of the Arrangement remains subject to customary closing conditions, including the receipt of certain key regulatory approvals. Assuming the timely receipt of such key regulatory approvals, the Arrangement is expected to close in the first half of 2026. Following completion of the Arrangement, it is expected that the common shares and the Series C Preferred Shares will be delisted from the Toronto Stock Exchange.

Dividends Declared

The Company's Board of Directors has authorized and declared a quarterly dividend of C$0.01 per outstanding common share to be paid on March 31, 2026, to shareholders of record at the close of business on March 20, 2026.  These dividends are designated to be eligible dividends for purposes of section 89(1) of the Income Tax Act (Canada).

The Company's Board of Directors has authorized and declared a quarterly dividend of C$0.4960625 per outstanding Series C Preferred Share (TSX: ECN.PR.C) to be paid on March 31, 2026, to shareholders of record on the close of business on March 20, 2026. These dividends are designated to be eligible dividends for purposes of section 89(1) of the Income Tax Act (Canada).

Non-IFRS Measures 

The Company's consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board and the accounting policies we adopted in accordance with IFRS.

The Company believes that certain Non-IFRS Measures can be useful to investors because they provide a means by which investors can evaluate the Company's underlying key drivers and operating performance of the business, exclusive of certain adjustments and activities that investors may consider to be unrelated to the underlying economic performance of the business of a given period. Throughout this news release, management uses a number of terms and ratios which do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures presented by other organizations, including adjusted EBITDA, adjusted net income, adjusted net income per common share and managed assets. A full description of these measures, along with a reconciliation to the most directly comparable IFRS measure, where applicable, can be found in the Management Discussion & Analysis ("MD&A") that accompanies ECN Capital's financial statements for the three-month period and year ended December 31, 2025.

ECN Capital's MD&A for the three-month period and year ended December 31, 2025 has been filed on SEDAR+ (www.sedarplus.com) and is available under the investor section of the Company's website (www.ecncapitalcorp.com).

About ECN Capital Corp.

With managed assets of US$7.3 billion, ECN Capital Corp. (TSX: ECN) is a leading provider of business services to North American-based banks, institutional investors, insurance company, pension plan, bank and credit union partners (collectively, its "Partners"). ECN Capital originates, manages and advises on credit assets on behalf of its Partners, specifically consumer (manufactured housing and recreational vehicle and marine) loans and commercial (floorplan and rental) loans. Its Partners are seeking high-quality assets to match with their deposits, term insurance or other liabilities. These services are offered through two operating segments: (i) Manufactured Housing Finance, and (ii) Recreational Vehicle and Marine Finance.

Forward-looking Statements

This news release includes forward-looking statements regarding ECN Capital and its business. Such statements are based on the current expectations and views of future events of ECN Capital's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. Forward-looking statements in this news release include those relating to the payment of dividends and the Arrangement, including the expected timing of closing thereof. The forward-looking events and circumstances discussed in this news release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting ECN Capital, including risks regarding the finance industry, economic factors, and many other factors beyond the control of ECN Capital. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. A discussion of the material risks and assumptions associated with the forward-looking statements can be found in ECN Capital's MD&A for the three-month period and year ended December 31, 2025 and ECN Capital's Annual Information Form dated February 26, 2026 for the year ended December 31, 2025 which have been filed on SEDAR+ and can be accessed at www.sedarplus.com. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and ECN Capital does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

SOURCE ECN Capital Corp.

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