December 31, 2025
Condensed Interim Statement of Financial Position
(Unaudited)
| (In thousands of Canadian dollars) | December 31, 2025 | March 31, 2025 |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash | $ 25,218 | $ 102,215 |
| Trade and other receivables (note 4) | 150,947 | 80,371 |
| Inventories | 16,440 | 18,776 |
| Prepaids | 6,487 | 8,603 |
| Derivative financial assets | 70 | 855 |
| 199,162 | 210,820 | |
| Non-current assets | ||
| Property and equipment (note 5) | 403,487 | 382,154 |
| Intangible assets (note 6) | 11,233 | 12,879 |
| Right-of-use assets (note 7) | 14,069 | 16,664 |
| Employee benefits asset (note 8) | 94,131 | 64,809 |
| Derivative financial assets | - | 59 |
| 522,920 | 476,565 | |
| Total assets | $ 722,082 | $ 687,385 |
| Liabilities and Equity | ||
| Current liabilities | ||
| Trade and other payables | $ 184,094 | $ 182,949 |
| Holdbacks | 31 | 35 |
| Lease liabilities (note 7) | 3,248 | 3,263 |
| Deferred government funding related to operating expenses (note 10) | 22,927 | 27,379 |
| Derivative financial liabilities | 190 | 58 |
| 210,490 | 213,684 | |
| Non-current liabilities | ||
| Lease liabilities (note 7) | 13,210 | 15,738 |
| Deferred government funding related to capital expenditures (note 10) | 406,909 | 389,690 |
| Employee benefits liability (note 8) | 22,261 | 22,445 |
| Deferred revenue - screening services - other | 5,000 | 4,571 |
| Derivative financial liabilities | 77 | - |
| 447,457 | 432,444 | |
| Equity | ||
| Accumulated surplus | 64,135 | 41,257 |
| Total liabilities and equity | $ 722,082 | $ 687,385 |
Contingencies (note 9) and contractual commitments (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 December 31 | Nine Months Ended December 31 | ||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Expenses | ||||
| Pre-Board Screening | $ 175,285 | $ 169,372 | $ 529,227 | $ 496,220 |
| Hold Baggage Screening | 47,535 | 42,916 | 139,953 | 125,821 |
| Non-Passenger Screening | 42,791 | 37,854 | 125,318 | 111,269 |
| Restricted Area Identity Card Program | 970 | 1,120 | 3,028 | 3,570 |
| Corporate services | 17,336 | 15,504 | 46,356 | 43,035 |
| Total expenses (note 11) | 283,917 | 266,766 | 843,882 | 779,915 |
| Other expenses (income) | ||||
| Net loss (gain) on fair value of derivative financial instruments | 203 | (1,145) | 1,053 | (1,177) |
| Finance costs | 154 | 167 | 491 | 516 |
| Foreign exchange loss (gain) | 118 | 222 | (11) | 160 |
| Loss on disposal of property and equipment | 58 | - | 39 | - |
| Write-off of property and equipment and intangible assets | - | - | 48 | - |
| Total other expenses (income) | 533 | (756) | 1,620 | (501) |
| Financial performance before revenue and government funding | 284,450 | 266,010 | 845,502 | 779,414 |
| Revenue | ||||
| Finance income | 510 | 707 | 1,720 | 2,566 |
| Miscellaneous income | 24 | 14 | 67 | 41 |
| Total revenue | 534 | 721 | 1,787 | 2,607 |
| Government funding | ||||
| Parliamentary appropriations for operating expenses | 265,806 | 250,639 | 790,620 | 733,369 |
| Amortization of deferred government funding related to capital expenditures | 14,074 | 12,746 | 40,607 | 35,515 |
| Parliamentary appropriations for lease payments | 979 | 804 | 2,907 | 2,382 |
| Total government funding (note 10) | 280,859 | 264,189 | 834,134 | 771,266 |
| Financial performance | $ (3,057) | $ (1,100) | $ (9,581) | $ (5,541) |
| Other comprehensive income | ||||
| Item that will not be reclassified to financial performance | ||||
| Remeasurement of defined benefit plans (note 8) | 4,830 | 5,799 | 32,459 | 9,710 |
| Total comprehensive income (loss) | $ 1,773 | $ 4,699 | $ 22,878 | $ 4,169 |
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 December 31:
| (In thousands of Canadian dollars) | Accumulated surplus |
|---|---|
| Balance, September 30, 2025 | $ 62,362 |
| Financial performance | (3,057) |
| Item that will not be reclassified to financial performance | |
| Remeasurement of defined benefit plans (note 8) | 4,830 |
| Balance, December 31, 2025 | $ 64,135 |
| Balance, September 30, 2024 | $ 36,371 |
| Financial performance | (1,100) |
| Item that will not be reclassified to financial performance | |
| Remeasurement of defined benefit plans (note 8) | 5,799 |
| Balance, December 31, 2024 | $ 41,070 |
| The accompanying notes are an integral part of these condensed interim financial statements. | |
| For the nine months ended December 31: | |
| (In thousands of Canadian dollars) | Accumulated surplus |
| Balance, March 31, 2025 | $ 41,257 |
| Financial performance | (9,581) |
| Item that will not be reclassified to financial performance | |
| Remeasurement of defined benefit plans (note 8) | 32,459 |
| Balance, December 31, 2025 | $ 64,135 |
| Balance, March 31, 2024 | $ 36,901 |
| Financial performance | (5,541) |
| Item that will not be reclassified to financial performance | |
| Remeasurement of defined benefit plans (note 8) | 9,710 |
| Balance, December 31, 2024 | $ 41,070 |
The accompanying notes are an integral part of these condensed interim financial statements.
Condensed Interim Statement of Cash Flows
(Unaudited)
| (In thousands of Canadian dollars) | Three Months Ended December 31 | Nine Months Ended December 31 | ||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Cash flows provided by (used in) | ||||
| Operating activities | ||||
| Financial performance | $ (3,057) | $ (1,100) | $ (9,581) | $ (5,541) |
| Items not involving cash | ||||
| Depreciation and amortization (note 11) | 14,807 | 13,094 | 42,966 | 37,259 |
| Change in net employee benefits asset/liability | 825 | 684 | 2,953 | 1,697 |
| Change in fair value of financial instruments at fair value through profit and loss | 203 | (1,145) | 1,053 | (1,177) |
| Other non-cash transactions | 59 | 360 | 122 | 360 |
| Loss on disposal of property and equipment | 58 | - | 39 | - |
| Amortization of deferred government funding related to capital expenditures (note 10) | (14,074) | (12,746) | (40,607) | (35,515) |
| Write-off of property and equipment and intangible assets | - | - | 48 | - |
| Net change in working capital balances (note 15) | (18,327) | (34,334) | (89,025) | (16,579) |
| (19,506) | (35,187) | (92,032) | (19,496) | |
| Investing activities | ||||
| Parliamentary appropriations received for capital funding (note 10) | 33,021 | 10,196 | 64,731 | 38,474 |
| Purchase of property and equipment | (18,771) | (11,532) | (47,150) | (22,959) |
| Purchase of intangible assets | (35) | (110) | (109) | (770) |
| 14,215 | (1,446) | 17,472 | 14,745 | |
| Financing activities | ||||
| Lease principal payments | (825) | (639) | (2,437) | (1,873) |
| (825) | (639) | (2,437) | (1,873) | |
| Decrease in cash | (6,116) | (37,272) | (76,997) | (6,624) |
| Cash, beginning of period | 31,334 | 40,603 | 102,215 | 9,955 |
| Cash, end of period | $ 25,218 | $ 3,331 | $ 25,218 | $ 3,331 |
The accompanying notes are an integral part of these condensed interim financial statements.