Earnings release
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Altus Group Reports Q3 2025 Financial Results & Announces Q4 2025 Dividend Payment Steady Recurring Revenue* Growth and Adjusted EBITDA Margin* Expansion TORONTO (November 6, 2025) – Altus Group Limited (ʺAltus Group” or “the Company”) (TSX: AIF), a leading provider of commercial real estate (“CRE”) intelligence, announced today its financial and operating results for the third quarter ended September 30, 2025. Selected Q3 2025 Information C$M Q3 2025 Q3 2024 % Change % Change Currency Revenue $133.3 $128.4 2.2% Constant Currency* Recurring Revenue* $102.4 $95.4 5.2% Constant Currency Profit (Loss) from continuing operations $0.5 $(2.9) 117.8% As Reported Adjusted EBITDA* $25.6 $21.6 16.1% Constant Currency Adjusted EBITDA margin* 19.2% 16.8% 230 bps Constant Currency Analytics Adjusted EBITDA margin* 32.8% 30.3% 250 bps Constant Currency Net cash provided by operating activities $22.6 $18.4 22.8% As Reported Free Cash Flow* $21.9 $16.0 36.5% As Reported Free Cash Flow per share* $0.51 $0.35 45.7% As Reported Funded debt to EBITDA ratio 1.21 2.07 n/a n/a *Denotes non-GAAP financial measure, non-GAAP ratio, total of segments measure, capital management measure, and/or supplementary and other financial measures as defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure (“NI 52-112”). Please refer to the “Non-GAAP and Other Measures” section of this press release for further information.For comparative purposes, note that net cash provided by operating activities, Free Cash Flow and Free Cash Flow per share in Q3 2024 included contribution from the Property Tax business which was sold in January 2025.
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Business Outlook The Company introduced guidance for Q4 2025 and refined its 2025 full year outlook to reflect current expectations: Q4 2025 FY 2025 Analytics 3 – 5% total Analytics revenue growth 5 – 7% Recurring Revenue growth 200 – 300 bps of Adjusted EBITDA margin expansion 2 – 4% total Analytics revenue growth (previously 3 – 6% growth) 4 – 6% Recurring Revenue growth (previously 5 – 7% growth) 250 – 350 bps of Adjusted EBITDA margin expansion (unchanged) Appraisals and Development Advisory Low-single digit revenue decline Flat Adjusted EBITDA margin Mid-single digit revenue decline (previously flat to low-single digit revenue decline) Adjusted EBITDA margin expansion (unchanged) Consolidated 2 – 4% revenue growth 100 – 200 bps of Adjusted EBITDA margin expansion 0 – 2% revenue growth (previously 2 – 4% growth) 350 – 450 bps of Adjusted EBITDA margin expansion (previously 400 – 500 bps expansion) Note: Business Outlook presented on a Constant Currency* basis over the corresponding period in 2024. Future acquisitions are not factored into this outlook. Key assumptions for the business outlook by segment: Analytics: consistency and growth in number of assets on the Valuation Management Solutions platform, continued ARGUS cloud conversions, new sales (including new sales converting to revenue within Management’s expected timeline and uptake on new product functionality), client and software retention consistent with 2024 levels, pricing action, improved operating leverage, as well as consistent and gradually improving economic conditions in financial and CRE markets, in particular a stronger recovery in the second half of the year. Appraisals & Development Advisory: improved client profitability and improved operating leverage. The Consolidated outlook assumes that corporate costs will remain elevated throughout 2025 consistent with 2024 levels. The change in our revenue guidance range reflects ongoing interest rate volatility and global trade uncertainty. Q4 2025 Dividend Payment The Board approved the payment of a cash dividend of $0.15 per common share for the fourth quarter ending December 31, 2025. Payment will be made on January 15, 2026 to common shareholders of record as at December 31, 2025.
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Altus Group’s Dividend Reinvestment Plan (“DRIP”) permits eligible shareholders to direct their cash dividends to be reinvested in additional common shares of the Company. For shareholders who wish to reinvest their dividends under the DRIP, Altus Group intends to issue common shares from treasury at a price equal to 96% of the weighted average closing price of the shares for the five trading days preceding the dividend payment date. Full details of the DRIP program are available on the Company’s website. Altus Group confirms that all dividends paid or deemed to be paid to its common shareholders qualify as ʺeligible dividendsʺ for purposes of subsection 89(14) of the Income Tax Act (Canada) and similar provincial and territorial legislation, unless indicated otherwise. Q3 2025 Results Conference Call & Webcast Date: Thursday, November 6, 2025 Time: 5:00 p.m. (ET) Webcast: https://events.q4inc.com/attendee/734821915 Live Call: 1-888-660-6785 (toll-free) (Conference ID: 8366990) Replay: https://www.altusgroup.com/investor-relations/ About Altus Group Altus connects data, analytics, applications and expertise to deliver the intelligence necessary to drive optimal CRE performance. The industry’s top leaders rely on our market-leading solutions and expertise to power performance and mitigate risk. Our global team of ~1,800 experts are making a lasting impact on an industry undergoing unprecedented change – helping shape the cities where we live, work, and build thriving communities. For more information about Altus (TSX: AIF) please visit www.altusgroup.com. Non-GAAP and Other Measures Altus Group uses certain non-GAAP financial measures, non-GAAP ratios, total of segments measures, capital management measures, and supplementary and other financial measures as defined in NI 52-112. These non-GAAP and other financial measures include Adjusted Earnings (Loss) and Constant Currency; non-GAAP ratios such as Adjusted EPS and Free Cash Flow per share; total of segments measures such as Adjusted EBITDA; capital management measures such as Free Cash Flow; and supplementary financial and other measures such as Adjusted EBITDA margin and Recurring Revenue. Management believes that these measures may assist investors in assessing an investment in the Company’s shares as they provide additional insight into the Company’s performance. Readers are cautioned that they are not defined performance measures, and do not have any standardized meaning under IFRS and may differ from similar computations as reported by other similar entities and, accordingly, may not be comparable to financial measures as reported by those entities. These measures should not be considered in isolation or as a substitute for financial measures prepared in accordance with IFRS. Refer to the “Non-GAAP and Other Measures” section on Page 3 of the Management’s Discussion & Analysis dated November 6, 2025 for the period ended September 30, 2025 (the “MD&A”), which is incorporated by reference in this press release and which is available on SEDAR+ at www.sedarplus.ca for more information on each measure, including definitions and methods of calculation. A reconciliation of Adjusted EBITDA and Adjusted Earnings (Loss) to Profit (Loss) and Free Cash Flow to Net cash provided by (used in) operating activities is included at the end of this press release.
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Forward-looking Information Certain information in this press release may constitute “forward-looking information” within the meaning of applicable securities legislation. All information contained in this press release, other than statements of current and historical fact, is forward-looking information. Forward-looking information includes, but is not limited to, statements relating to expected financial and other benefits of acquisitions and the closing of acquisitions (including the expected timing of closing), as well as the discussion of our business, strategies and leverage (including the commitment to increase borrowing capacity), expectations of future performance, including any guidance on financial expectations, and our expectations with respect to cash flows and liquidity. Generally, forward-looking information can be identified by use of words such as “may”, “will”, “expect”, “believe”, “anticipate”, “estimate”, “intend”, “plan”, “would”, “could”, “should”, “continue”, “goal”, “objective”, “remain” and other similar terminology. Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by us at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may not be known and may cause actual results, performance or achievements, industry results or events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that we identified and applied in drawing conclusions or making forecasts or projections set out in the forward-looking information (including sections entitled “Business Outlook”) include, but are not limited to: no significant impact on our business from changes or potential changes to trade regulations, including tariffs; engagement and product pipeline opportunities in Analytics will result in associated definitive agreements; continued adoption of cloud subscriptions by our customers; retention of material clients and new sales; sustaining our software and subscription renewals; successful execution of our business strategies; consistent and stable economic conditions or conditions in the financial markets; consistent and stable legislation in the various countries in which we operate; consistent and stable foreign exchange conditions; no disruptive changes in the technology environment; opportunity to acquire accretive businesses and the absence of negative financial and other impacts resulting from strategic investments or acquisitions on short term results; successful integration of acquired businesses; and continued availability of qualified professionals. Inherent in the forward-looking information are known and unknown risks, uncertainties and other factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any results, performance or achievements expressed or implied by such forward-looking information. Those risks include, but are not limited to: the CRE market conditions; the general state of the economy; our financial performance; our financial targets; our international operations; acquisitions, joint ventures and strategic investments; business interruption events; third party information and data; cybersecurity; industry competition; professional talent; our subscription renewals; our sales pipeline; client concentration and loss of material clients; product enhancements and new product introductions; technological strategy; our use of technology; intellectual property; compliance with laws and regulations; privacy and data protection; artificial intelligence; our leverage and financial covenants; interest rates; inflation; our brand and reputation; our cloud transition; fixed price engagements; currency fluctuations; credit; tax matters; our contractual obligations; legal proceedings; regulatory review; health and safety hazards; our insurance limits; our ability to meet the solvency requirements necessary to make dividend payments; our share price; share repurchase programs; our capital investments; the issuance of additional common shares and debt; our internal and disclosure controls; and environmental, social and governance (“ESG”) matters and climate change, as well as those described in our annual publicly filed documents, including the Annual Information Form for the year ended December 31, 2024 (which are available on SEDAR+ at www.sedarplus.ca). Investors should not place undue reliance on forward-looking information as a prediction of actual results. The forward- looking information reflects management’s current expectations and beliefs regarding future events and operating performance and is based on information currently available to management. Although we have attempted to identify important factors that could cause actual results to differ materially from the forward-looking information contained herein, there are other factors that could cause results not to be as anticipated, estimated or intended. The forward- looking information contained herein is current as of the date of this press release and, except as required under applicable law, we do not undertake to update or revise it to reflect new events or circumstances. Additionally, we undertake no obligation to comment on analyses, expectations or statements made by third parties in respect of Altus Group, our financial or operating results, or our securities. Certain information in this press release, including sections entitled “Business Outlook”, may be considered as “financial outlook” within the meaning of applicable securities legislation. The purpose of this financial outlook is to provide readers with disclosure regarding Altus Group’s reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes.
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FOR FURTHER INFORMATION PLEASE CONTACT: Camilla Bartosiewicz Chief Communications Officer, Altus Group (416) 641-9773 camilla.bartosiewicz@altusgroup.com Martin Miasko Sr. Director, Investor Relations and Strategy, Altus Group (416) 204-5136 martin.miasko@altusgroup.com
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Interim Condensed Consolidated Statements of Comprehensive Income (Loss) For the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited) (Expressed in Thousands of Canadian Dollars, Except for Per Share Amounts) Three months ended September 30 Nine months ended September 30 2025 2024 2025 2024 Revenues $ 133,315 $ 128,419 $ 393,933 $ 384,226 Expenses Employee compensation 79,023 78,242 250,144 253,588 Occupancy 1,134 1,318 4,009 3,680 Other operating 35,731 29,817 85,100 80,783 Depreciation of right-of-use assets 1,819 2,422 5,847 6,676 Depreciation of property, plant and equipment 963 977 2,891 2,660 Amortization of intangibles 7,019 7,792 21,760 24,333 Acquisition and related transition costs (income) 21 25 87 8,894 Share of (profit) loss of joint venture (1,127) (1,507) (1,248) (2,013) Restructuring costs (recovery) 6,616 2,008 13,753 9,113 (Gain) loss on investments (680) (881) (674) (640) Finance costs (income), net – leases 368 277 967 637 Finance costs (income), net – other (1,681) 6,016 (3,377) 14,676 Profit (loss) before income taxes from continuing operations 4,109 1,913 14,674 (18,161) Income tax expense (recovery) 3,597 4,790 11,308 5,504 Profit (loss) from continuing operations, net of tax $ 512 $ (2,877) $ 3,366 $ (23,665) Profit (loss) from discontinued operations, net of tax 393 3,532 382,087 26,450 Profit (loss) for the period $ 905 $ 655 $ 385,453 $ 2,785 Other comprehensive income (loss): Items that may be reclassified to profit or loss in subsequent periods: Currency translation differences 12,931 6,199 (4,195) 16,143 Items that are not reclassified to profit or loss in subsequent periods: Changes in investments measured at fair value through other comprehensive income, net of tax - (1,090) - (1,646) Other comprehensive income (loss), net of tax 12,931 5,109 (4,195) 14,497 Total comprehensive income (loss) for the period, net of tax $ 13,836 $ 5,764 $ 381,258 $ 17,282 Earnings (loss) per share attributable to the shareholders of the Company during the period Basic earnings (loss) per share: Continuing operations $0.01 $(0.06) $0.08 $(0.52) Discontinued operations $0.01 $0.08 $8.64 $0.58 Diluted earnings (loss) per share: Continuing operations $0.01 $(0.06) $0.08 $(0.51) Discontinued operations $0.01 $0.08 $8.54 $0.57
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Interim Condensed Consolidated Balance Sheets As at September 30, 2025 and December 31, 2024 (Unaudited) (Expressed in Thousands of Canadian Dollars) September 30, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents $ 405,122 $ 41,876 Trade receivables and other 145,233 144,812 Income taxes recoverable 3,281 5,099 Derivative financial instruments 2,994 8,928 556,630 200,715 Assets held for sale - 282,233 Total current assets 556,630 482,948 Non-current assets Trade receivables and other 7,552 9,620 Derivative financial instruments 12,643 9,984 Investments 15,124 14,580 Investment in joint venture 21,656 25,605 Deferred tax assets 16,354 56,797 Right-of-use assets 23,905 19,420 Property, plant and equipment 11,740 13,217 Intangibles 196,395 214,614 Goodwill 405,174 404,176 Total non-current assets 710,543 768,013 Total assets $ 1,267,173 $ 1,250,961 Liabilities Current liabilities Trade payables and other $ 175,902 $ 216,390 Income taxes payable 19,304 3,017 Lease liabilities 11,139 11,009 206,345 230,416 Liabilities directly associated with assets held for sale - 57,680 Total current liabilities 206,345 288,096 Non-current liabilities Trade payables and other 23,414 19,828 Lease liabilities 30,835 26,751 Borrowings 156,015 281,887 Deferred tax liabilities 21,620 17,179 Total non-current liabilities 231,884 345,645 Total liabilities 438,229 633,741 Shareholders’ equity Share capital 644,893 798,087 Contributed surplus 42,199 21,394 Accumulated other comprehensive income (loss) 52,048 56,243 Retained earnings (deficit) 89,804 (275,935) Reserves of assets held for sale - 17,431 Total shareholders’ equity 828,944 617,220 Total liabilities and shareholders’ equity $ 1,267,173 $ 1,250,961
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Interim Condensed Consolidated Statements of Cash Flows For the Nine Months Ended September 30, 2025 and 2024 (Unaudited) (Expressed in Thousands of Canadian Dollars) Nine months ended September 30 2025 2024 Cash flows from operating activities Profit (loss) before income taxes from continuing operations $ 14,674 $ (18,161) Profit (loss) before income taxes from discontinued operations 454,562 32,508 Profit (loss) before income taxes $ 469,236 $ 14,347 Adjustments for: Depreciation of right-of-use assets 5,847 7,967 Depreciation of property, plant and equipment 2,891 3,507 Amortization of intangibles 21,759 28,214 Finance costs (income), net – leases 973 873 Finance costs (income), net – other (3,377) 14,680 Share-based compensation 12,676 16,382 Unrealized foreign exchange (gain) loss (2,824) (830) (Gain) loss on investments (674) (640) (Gain) loss on disposal of right-of-use assets, property, plant and equipment and intangibles 985 2,049 (Gain) loss on disposal of assets (457,757) - (Gain) loss on equity derivatives (1,505) (8,947) Share of (profit) loss of joint venture (1,248) (2,013) Impairment of right-of-use assets, net of (gain) loss on sub-leases 3,063 (322) Net changes in: Operating working capital 3,092 (4,124) Liabilities for cash-settled share-based compensation (1,079) 10,355 Deferred consideration payables - (1,674) Net cash generated by (used in) operations 52,058 79,824 Interest paid on borrowings (4,809) (14,011) Interest paid on leases (973) (873) Interest received 9,997 - Income taxes paid (5,831) (9,946) Income taxes refunded 582 218 Net cash provided by (used in) operating activities 51,024 55,212 Cash flows from financing activities Proceeds from exercise of options 15,301 13,683 Financing fees paid (771) (66) Proceeds from borrowings 50,590 20,000 Repayment of borrowings (177,615) (31,297) Payments of principal on lease liabilities (9,551) (12,295) Dividends paid (18,109) (18,454) Treasury shares purchased for share-based compensation (11,150) (3,840) Cancellation of shares (177,998) (11,043) Net cash provided by (used in) financing activities (329,303) (43,312) Cash flows from investing activities Purchase of investments (352) (332) Purchase of intangibles (1,200) (5,984) Purchase of property, plant and equipment (2,489) (1,362) Proceeds from investments 5,289 93 Proceeds from sale of discontinued operations, net of cash disposed 655,811 - Income taxes paid on disposal of discontinued operations (20,609) - Net cash provided by (used in) investing activities 636,450 (7,585) Effect of foreign currency translation (3,641) 1,921 Net increase (decrease) in cash and cash equivalents 354,530 6,236 Cash and cash equivalents, beginning of period 50,592 41,892 Cash and cash equivalents, end of period $ 405,122 $ 48,128
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Reconciliation of Profit (Loss) to Adjusted EBITDA and Adjusted Earnings (Loss) The following table provides a reconciliation of Profit (Loss) to Adjusted EBITDA and Adjusted Earnings (Loss): Three months ended September 30, Nine months ended September 30, In thousands of dollars, except for per share amounts 2025 2024 2025 2024 Profit (loss) for the period $ 905 $ 655 $ 385,453 $ 2,785 (Profit) loss from discontinued operations, net of tax (393) (3,532) (382,087) (26,450) Occupancy costs calculated on a similar basis prior to the adoption of IFRS 16 (1) (2,227) (2,320) (6,658) (7,539) Depreciation of right-of-use assets 1,819 2,422 5,847 6,676 Depreciation of property, plant and equipment and amortization of intangibles (7) 7,982 8,769 24,651 26,993 Acquisition and related transition costs (income) 21 25 87 8,894 Unrealized foreign exchange (gain) loss (2) (1,662) 1,963 (2,824) 217 (Gain) loss on disposal of right-of-use assets, property, plant and equipment and intangibles (2) 958 7 985 1,578 Share of (profit) loss of joint venture (1,127) (1,507) (1,248) (2,013) Non-cash share-based compensation costs (3) 3,948 3,168 10,227 10,054 (Gain) loss on equity derivatives net of mark-to-market adjustments on related RSUs and DSUs (3) (1,764) (741) 900 (2,915) Restructuring costs (recovery) 6,616 2,008 13,753 9,113 (Gain) loss on investments (4) (680) (881) (674) (640) Other non-operating and/or non-recurring (income) costs (5) 8,959 449 12,587 2,905 Finance costs (income), net – leases 368 277 967 637 Finance costs (income), net – other (8) (1,681) 6,016 (3,377) 14,676 Income tax expense (recovery) (9) 3,597 4,790 11,308 5,504 Adjusted EBITDA $ 25,639 $ 21,568 $ 69,897 $ 50,475 Depreciation of property, plant and equipment and amortization of intangibles of non-acquired businesses (7) (1,796) (1,747) (4,555) (4,961) Finance (costs) income, net – other (8) 1,681 (6,016) 3,377 (14,676) (Gain) loss on hedging transactions, including currency forward contracts and interest expense (income) on swaps (8) 153 1,679 2,182 704 Tax effect of adjusted earnings (loss) adjustments (9) (9,328) (6,770) (23,809) (16,885) Adjusted earnings (loss)* $ 16,349 $ 8,714 $ 47,092 $ 14,657 Weighted average number of shares – basic 43,097,212 45,927,341 44,242,210 45,748,192 Weighted average number of restricted shares 86,464 251,085 90,011 333,464 Weighted average number of shares – adjusted 43,183,676 46,178,426 44,332,221 46,081,656 Adjusted earnings (loss) per share (6) $0.38 $0.19 $1.06 $0.32 (1) Management uses the non-GAAP occupancy costs calculated on a similar basis prior to the adoption of IFRS 16 when analyzing financial and operating performance. (2) Included in other operating expenses in the interim condensed consolidated statements of comprehensive income (loss). (3) Included in employee compensation expenses in the interim condensed consolidated statements of comprehensive income (loss). (4) (Gain) loss on investments relates to changes in the fair value of investments in partnerships. (5) Other non-operating and/or non-recurring (income) costs for the three and nine months ended September 30, 2025 relate to legal, advisory, consulting, and other professional fees related to organizational and strategic initiatives. These are included in other operating expenses in the interim condensed consolidated statements of comprehensive income (loss). (6) Refer to page 4 of the MD&A for the definition of Adjusted EPS.
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(7) For the purposes of reconciling to Adjusted Earnings (Loss), the amortization of intangibles of acquired businesses is adjusted from Profit (loss) for the period. Per the quantitative reconciliation above, we have added back depreciation of property, plant and equipment and amortization of intangibles and then deducted the depreciation of property, plant and equipment and amortization of intangibles of non-acquired businesses to arrive at the amortization of intangibles of acquired businesses. (8) For the purposes of reconciling to Adjusted Earnings (Loss), the interest accretion on contingent consideration payables and (gains) losses on hedging transactions and interest expense (income) on swaps is adjusted from profit (loss) for the period. Per the quantitative reconciliation above, we have added back finance costs (income), net – other and then deducted finance costs (income), net – other prior to adjusting for interest accretion on contingent consideration payables and (gains) losses on hedging transactions and interest expense (income) on swaps. (9) For the purposes of reconciling to Adjusted Earnings (Loss), only the tax impacts for the reconciling items noted in the definition of Adjusted Earnings (Loss) is adjusted from profit (loss) for the period. Reconciliation of Free Cash Flow and Free Cash Flow per share Three months ended September 30, Nine months ended September 30, In thousands of dollars, except for per share amounts 2025 2024 2025 2024 Net cash provided by (used in) operating activities $ 22,564 $ 18,372 $ 51,024 $ 55,212 Less: Capital Expenditures (710) (2,359) (3,689) (7,346) Free Cash Flow $ 21,854 $ 16,013 $ 47,335 $ 47,866 Weighted average number of shares – basic 43,097,212 45,927,341 44,242,210 45,748,192 Weighted average number of restricted shares 86,464 251,085 90,011 333,464 Weighted average number of shares – adjusted 43,183,676 46,178,426 44,332,221 46,081,656 Free Cash Flow per share $0.51 $0.35 $1.07 $1.04 Constant Currency Three months ended September 30, 2025 Nine months ended September 30, 2025 As presented For Constant Currency As presented For Constant Currency Canadian Dollar 1.000 1.000 1.000 1.000 United States Dollar 1.377 1.364 1.399 1.360 Pound Sterling 1.856 1.774 1.837 1.736 Euro 1.610 1.499 1.563 1.478 Australian Dollar 0.901 0.914 0.896 0.901
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Three months ended September 30, 2024 Nine months ended September 30, 2024 As presented For Constant Currency As presented For Constant Currency Canadian Dollar 1.000 1.000 1.000 1.000 United States Dollar 1.364 1.342 1.360 1.345 Pound Sterling 1.774 1.698 1.736 1.673 Euro 1.499 1.459 1.478 1.457 Australian Dollar 0.914 0.878 0.901 0.900