The Albany Gazette - Western Investment Company Reports First Quarter 2026 Results and Announces Executive Personnel Changes

Highlights

The first quarter was highlighted by the sale of Western's investment in GlassMasters Autoglass ("GlassMasters") which closed on February 2, 2026 (the "Transaction"). The Transaction generated net proceeds of $23.3 million for Western, representing approximately 2.5 times the carrying value of the investment at closing and resulting in a gain on sale of $14.4 million. The final purchase price remains subject to customary post-closing adjustments, including working capital true-ups and escrow arrangements.

Insurance revenue experienced strong growth in the quarter, increasing to $9.3 million, from $8.2 million in the prior-year period. Growth was primarily driven by higher revenue recognition from longer-term products with multi-year coverage periods.

Loss from equity-accounted investments for the quarter ended March 31, 2026 was $1.3 million, compared to a loss of $0.3 million in the comparative period in 2025, and was primarily attributable to expenses at GlassMasters in connection with the Transaction.

Net income for the quarter ended March 31, 2026 was $12.5 million or $0.08 per share, compared to a net loss of $1.0 million or $0.01 loss per share in the first quarter of 2025. Western Consolidated Financial Highlights

Fortress Insurance ("Fortress")

On a stand-alone basis, Fortress increased insurance revenue by 33% to $8.8 million in the first quarter of 2026.

The trailing 12-month loss ratio (incurred losses, including incurred but not reported claims, over earned premium) improved to 50.8%, compared to 52.1% for the year ended December 31, 2025. The improvement was primarily driven by a higher insurance revenue base as additional premium was earned during the period.

The trailing 12-month expense ratio improved modestly to 45.7% at the end of the first quarter of 2026, compared to 50.0% for full year 2025, reflecting disciplined cost management and operating leverage resulting from higher insurance revenue.

Fortress's total investment portfolio, including cash and cash equivalents, was $34.8 million at March 31, 2026, compared to $33.7 million at December 31, 2025. Net investment income for the quarter ended March 31, 2026 was $0.3 million, compared to $0.1 million for the same period in 2025.

Net income for the first quarter of 2026 was $0.3 million, compared to a net loss of $0.1 million in the comparative quarter of 2025.

Fortress Stand-alone Financial Highlights

¹ Supplementary, non-GAAP, financial measure - total gross insurance premiums written during the year.
Note: The above table reflects stand-alone Fortress results, excluding consolidation adjustments for the Corporation

Foothills Creamery ("Foothills") reported revenue of $6.0 million for the first quarter of 2026, compared to $7.0 million in the same period of 2025. Despite the decrease in revenue, gross profit increased to $2.0 million from $1.6 million, while EBITDA improved to $0.5 million from $0.2 million in the comparative quarter. The improvement was primarily driven by a strategic shift in the sales mix to higher-margin ice cream products and lower input costs. The majority of Foothills' annual revenue is typically generated during the summer months.

Golden Health Care increased revenue by 7% to $2.9 million in the first quarter of 2026, compared to $2.7 million in the same period in 2025, reflecting continued strong occupancy levels at its senior care homes. Operating expenses remained relatively stable, contributing to an increase in EBITDA to $0.73 million, compared to $0.65 million in the comparative period of 2025.

GlassMasters was sold on February 2, 2026. Prior to closing of the Transaction, GlassMasters generated revenue of $3.4 million and EBITDA loss of $2.5 million in the first quarter of 2026. The loss was primarily due to expenses paid in connection with the Transaction.

Western is pleased to announce the appointments of Mackenzie Clark as Chief Legal O icer and Sai Ahmed as Chief Operating O icer. Additionally, Vic Bertrand has been appointed to the senior leadership team as Executive Vice President and Chief Development O icer. Mr. Bertrand's extensive business experience will support the execution of Western's most compelling growth opportunities.

These appointments will allow Shafeen Mawani to continue focusing on Fortress Insurance, where he serves as CEO, while also contributing to the Western platform in his new role as Vice President.

Western has agreed to grant each of Ms. Clark, Mr. Ahmed and Mr. Bertrand 510,204 restricted share units (RSUs) priced at $0.98 per share.ௗ Fifty percent of these RSUs will cli vest after five years, with the balance cli vesting after 10 years.ௗ The grant of these RSUs is subject to approval by the TSXV. It is Western's expectation that the shares necessary to support these RSUs will be purchased in the open market and will not be issued from treasury.

About The Western Investment Company of Canada Limited

Western is an insurance and investments holding company focused on decentralized ownership of insurance businesses and centralized investment management. Western's common shares are traded on the TSX Venture Exchange under the symbol WI.

For more information on Western, please visit www.winv.ca. To subscribe to email alerts, please visit this link.

Contact Information

Pablo Dancuart
Chief Financial O icer 604 349 5115
[email protected]

Advisories

This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to future results and plans for Western and its associated companies, acquisitions, financings and returns. Statements containing the words: 'believes', 'intends', 'expects', 'plans', 'seeks' and 'anticipates' and any other words of similar meaning are forward-looking. All statements included herein involve various risks and uncertainties because they relate to future events and circumstances beyond Western's control.

The forward-looking statements are based on certain key expectations and assumptions made by Western, including expectations and assumptions concerning the ability of Western to successfully implement its strategic plans and initiatives. Although Western believes that these expectations and assumptions are reasonable based on currently available information, undue reliance should not be placed on the forward-looking statements, as there can be no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could di er materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks relating to regulatory compliance, risks relating to demand for the products and services provided by Fortress Insurance and other portfolio companies, risks relating to future growth prospects and business opportunities, risks that management is not able to execute its business strategy, and the impact of general economic conditions in Canada and the United States. A description of additional assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to di er materially from forward-looking information can be found in Western's public disclosure documents filed on SEDAR+ at www.sedarplus.com.

The forward-looking statements contained in this news release are made as of the date hereof and Western undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

This news release also contains financial outlook information ("FOFI") about prospective results of operations and book value, which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. FOFI contained in this news release was made as of the date of this news release to provide information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for any other purpose. Western disclaims any intention or obligation to update or revise any FOFI contained in this news release, whether as a result of new information, future events or otherwise, except as required by applicable law.

This news release shall not constitute an o er to sell or the solicitation of an o er to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such o er, solicitation or sale would be unlawful.

"Neither the TSX Venture Exchange nor its Regulatory Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

SOURCE: The Western Investment Company of Canada Limited

View the original press release on ACCESS Newswire

(W.Williams--TAG)