

		2026			2025
Earnings before income taxes	$	400.2		$	513.7
Canadian statutory income tax rates		26.5	%		26.5	%
Income taxes at Canadian statutory rates	$	106.1		$	136.2
Effect of differences in tax rates in other jurisdictions		(13.6)			1.8
Tax benefits not previously recognized and unrecognized tax benefits		(0.5)			(6.8)
Non-taxable gain on fair value remeasurement of SIMCOM		—			(21.9)
Non-deductible expenses		5.5			—
Tax impact on after tax profit of equity accounted investees		(17.7)			(18.5)
Prior years' tax adjustments		(1.9)			2.8
Other		(0.4)			5.1
Income tax expense	$	77.5		$	98.7
Effective tax rate		19	%		19	%



		2026		2025
Current income tax expense :
Current year	$	36.2	$	56.7
Prior years' tax adjustments		19.4		(2.7)
Deferred income tax expense:
Tax benefit not previously recognized used to reduce the deferred tax expense		(0.5)		(6.8)

Origination and reversal of temporary differences		22.4		51.5

Income tax expense	$	77.5	$	98.7






														Foreign
	Balance												currency
	beginning		Recognized			Recognized			Recognized				exchange			Balance
	of year		in income				in OCI			in equity		differences	end of year
Non-capital loss carryforwards	$	89.7		$	87.0		$	—		$	—			$	1.6		$	178.3
Unclaimed research & development expenditures	227.8			(133.9)			—			—				(4.6)			89.3
Investment tax credits	(76.8)			(6.2)			—			—				—			(83.0)
Property, plant and equipment and right-of-use of assets	(168.0)			(24.4)			—			—				4.6			(187.8)
Intangible assets	(126.8)			12.3			—			—				1.0			(113.5)
Amounts not currently deductible including interest limitation	110.7			23.0			—			0.5				(1.6)			132.6
Government participation	93.6			5.0			—			—				—			98.6
Other	0.9			15.3			(21.4)			—				—			(5.2)
Net deferred tax assets	$	151.1		$	(21.9)		$	(21.4)		$	0.5			$	1.0		$	109.3






																Foreign
	Balance											Business				currency
	beginning		Recognized			Recognized			Recognized			combinations				exchange			Balance
	of year		in income				in OCI		in equity			(Note 2)			differences			end of year
Non-capital loss carryforwards	$	142.5		$	(61.3)		$	—		—			$	3.3		$	5.2		$	89.7
Unclaimed research & development expenditures	162.1			59.0			—			—			—			6.7			227.8
Investment tax credits	(73.8)			(3.0)			—			—			—			—			(76.8)
Property, plant and equipment and right-of-use of assets	(154.1)			9.3			—			—			(11.1)			(12.1)			(168.0)
Intangible assets	(39.0)			(59.7)			—			—			(26.3)			(1.8)			(126.8)
Amounts not currently deductible including interest limitation	76.9			22.7			—			2.4			6.5			2.2			110.7
Government participation	86.4			7.2			—			—			—			—			93.6
Other	(4.3)			(18.9)			20.3			—			3.9			(0.1)			0.9
Net deferred tax assets	$	196.7		$	(44.7)		$	20.3		$	2.4		$	(23.7)		$	0.1		$	151.1

As at March 31, 2026, net deferred tax assets of $69.7 million (2025 – $148.7 million) were recognized in jurisdictions that incurred losses this fiscal year or the preceding fiscal year. Based upon the level of historical taxable income or projections for future taxable income, management believes it is probable that the Company will realize the benefits of these net deferred tax assets.

As at March 31, 2026, a deferred income tax liability on taxable temporary differences of $3,549.9 million (2025 – $3,456.4 million) related to investments in subsidiaries and interests in joint ventures has not been recognized, because the Company controls the timing of the reversal of the temporary differences and believes it is probable that the temporary differences will not be reversed in the foreseeable future.

As at March 31, 2026, the Company has $98.9 million (2025 – $130.4 million) of deductible temporary differences for which deferred tax assets have not been recognized. The Company also has $170.5 million (2025 – $156.2 million) of capital losses for which deferred tax assets have not been recognized with no expiry date.

As at March 31, 2026, the Company recognized a current income tax expense related to the Pillar Two tax of $2.5 million (2025 ‑ $2.6 million) mainly related to the Company's operations in the United Arab Emirates and Hungary where the statutory income tax rates are below the 15% determined by the Pillar Two rules.

On July 4, 2025, a reconciliation bill titled “An Act to provide for reconciliation pursuant to title II of H. Con. Res 14” was signed into U.S. federal law. The reconciliation bill addresses numerous spending policies and also makes several adjustments to current tax law, including an increase to the base erosion and anti-abuse tax (BEAT) rate starting in calendar 2026, reinstating full deduction of U.S. qualified R&D expenditures starting in calendar 2025, permanently restoring the ability for immediate deduction of new investments in certain qualified depreciable assets made after January 19, 2025, and providing a higher deduction limitation for net interest expense starting in calendar 2025. This enactment had no material impact on the Company's overall income tax expense nor on the effective tax rate this year.