11:12 AM EDT, 08/22/2025 (MT Newswires) -- RBC Capital Markets said Thursday its aerospace coverage delivered encouraging results in the second quarter, with positive momentum across key names.

RBC noted that Air Canada ( ACDVF ) has pulled its guidance due to a flight attendant strike, and RBC expects a $400 million EBITDA hit to the company due to the disruption of a brief strike by its flight attendants.

But RBC sees these impacts as "one-time" and view the shares as compelling on a 2028/2029 FCF inflection.

Bombardier (BBD-A.TO, BBD-B.TO) delivered another strong quarter, reiterating free cash flow guidance, supported by strong orders, defense tailwinds, and favorable mix, RBC said.

CAE (CAE.TO) was more balanced, with lowered fiscal 2026 civil targets offset by defense strength.

RBC said Chorus Aviation ( CHRRF ) delivered in-line results as RBC cited the company's low leverage and growth opportunities from defense spending, M&A and new verticals.

Exchange Income ( EIFZF ) raised its 2025 guidance, citing tailwinds from its Canadian North operations and operational efficiencies. After hosting an investor lunch with the company, RBC said it remains confident in EIF's strong growth prospects and does not believe that this outlook is fully priced into the current valuation.

Price: 19.54, Change: +0.19, Percent Change: +0.98