Cargojet Announces Second Quarter Financial Results

Executive Summary

• Cargojet Inc. reported financial results for the second quarter ended June 30, 2025, showing a significant improvement in net profitability compared to the prior year, driven by strong revenue growth in domestic and charter segments.
• Total revenues increased by 3.2% to $238.2 million, with Domestic revenues up 14% and Charter revenues up 22%, offsetting softness in the ACMI segment due to weaker European traffic.
• The company achieved a record On-time Arrival Performance of 99.5% and reported an adjusted EBITDA of $80.2 million, representing a 1.4% year-over-year increase.

Key Details

• Total Revenues: $238.2 million for Q2 2025, an increase of $7.4 million (3.2%) compared to $230.8 million in Q2 2024.
• Revenue Breakdown:
  • Domestic network, ACMI, and charter revenues: $204.6 million (up 7.0% YoY).
  • Fuel surcharge and other revenues: $38.3 million (down 14.7% YoY).
• Profitability Metrics:
  • Net Loss: $3.2 million, a significant improvement from a $25.0 million net loss in Q2 2024 (an 87.2% decrease in loss).
  • Adjusted Net Earnings: $15.7 million, up 124.3% from $7.0 million in Q2 2024.
  • Adjusted EBITDA: $80.2 million, up 1.4% from $79.1 million in Q2 2024.
  • Adjusted EBITDA Margin: 33.7% (down from 34.3% in Q2 2024).
  • Adjusted EPS: $1.02, up from $0.43 in Q2 2024.
• Cash Flow:
  • Net cash flows from operating activities: $28.0 million (down from $48.5 million in Q2 2024).
  • Free Cash Flow: $(72.5) million, compared to $0.5 million in Q2 2024.
• Operational Statistics:
  • Block Hours: 15,840 hours (down 10.1% from 17,623 hours in Q2 2024).
  • Cargo Operating Fleet: 43 aircraft (up from 41 in Q2 2024).
  • Head Count: 1,817 employees (down 3.0% from 1,874 in Q2 2024).
  • On-time Arrival Performance: 99.5% within fifteen minutes of scheduled arrival time.
• Six-Month Period Highlights (Jan-Jun 2025):
  • Total Revenues: $488.1 million (up 5.6% YoY).
  • Net Earnings: $44.8 million (up 497.3% YoY).
  • Adjusted EBITDA: $161.0 million (up 2.2% YoY).
  • Free Cash Flow: $(118.4) million.

Notable Quotes

• "Cargojet posted strong overall revenues despite ongoing uncertainty and a weakening economic outlook, underscoring the strength of our network. Softness in the ACMI segment from weaker European traffic was more than offset by robust domestic and charter revenue growth, and with the EU–US trade deal now in place, we expect the EU–US corridor to reopen and generate new ACMI and charter opportunities in the coming quarters," said Jamie Porteous, Co–Chief Executive Officer.
• "Ensuring that we can deliver shareholder value in any economic cycle remains a clear priority. Our company wide cost management and productivity initiatives produced a year-on-year improvement in adjusted EBITDA and sequential improvement of 140 basis-point increase in adjusted EBITDA margins, despite a 10% drop in block hours flown during Q2 versus the prior year," said Pauline Dhillon, Co-Chief Executive Officer.