Cargojet Announces Third Quarter Financial Results

Executive Summary

• Cargojet reported third‑quarter 2025 total revenues of C$219.9 M, down 10.5% YoY, but generated record free cash flow of C$152.4 M (+218.8% YoY).
• Adjusted EBITDA was C$70.4 M (32.0% margin), a 14.4% decline from the prior year; net earnings fell to C$8.8 M, down 70.4% YoY.
• Domestic network revenue grew 6.3% YoY (+C$5.9 M) while ACMI and charter segments declined sharply, driving overall revenue weakness.

Key Details

• Revenue Breakdown – Domestic network/ACMI/charter: C$187.1 M (‑8.9% YoY); Fuel surcharge & other: C$40.7 M (‑8.7% YoY).
• Adjusted EBITDA – C$70.4 M vs. C$82.2 M last year; margin slipped to 32.0% from 33.5%.
• Free Cash Flow – C$152.4 M versus C$47.8 M a year earlier, driven by:
• Operating cash flow increase of C$15.9 M.
• Net proceeds from asset disposals of C$88.7 M.
• Net Earnings – C$8.8 M (‑70.4% YoY). Adjusted net earnings: C$4.9 M (‑79.2% YoY).
• EPS – Diluted EPS fell to $0.58 from $1.78 a year ago; adjusted diluted EPS declined to $0.32 from $1.48.
• Operating Statistics – Block hours down 16.2% YoY (15,861 h); operating days unchanged at 49; headcount reduced by 54 employees to 1,838.
• Cost Management – SG&A expenses fell 28.0% YoY to C$17.5 M; direct expenses rose 3.9% to C$190.3 M.
• Liquidity – Strong cash generation supported by asset disposals; no mention of new financing or debt changes.

Notable Quotes

“We delivered a robust EBITDA margin of 32.0% and free cash flow of $152.4 million in the third quarter of 2025, up 219% year‑over‑year…,” – Pauline Dhillon, Co‑Chief Executive Officer.

“The resilience of Cargojet's business model was proven this quarter as our core Domestic Network revenue increased by more than 6% year‑over‑year,” – Jamie Porteous, Co‑Chief Executive Officer.