Cargojet Announces Fourth Quarter Financial Results

Executive Summary

• Cargojet reported Q4 2025 Adjusted EBITDA of C$95.0 M, up 3.6% YoY and margin expansion of 210 bps to 33.4%.
• Total revenues fell 2.9% YoY to C$284.7 M, while net earnings dropped 62.6% to C$26.6 M due largely to higher finance costs (+C$37.7 M).
• Free cash flow turned negative (‑C$9.8 M), an improvement from the prior year’s ‑C$33.3 M, driven by lower asset disposals and weaker operating cash generation.

Key Details

• Adjusted EBITDA: C$95.0 M (up C$3.3 M YoY) – margin 33.4% (+210 bps).
• Total Revenues: C$284.7 M (‑C$8.5 M, ‑2.9% YoY); domestic revenue up 16.9% to C$243.0 M, offset by declines in ACMI/Charter revenues.
• Net Earnings: C$26.6 M (‑C$44.6 M, ‑62.6% YoY).
• Adjusted Net Earnings: C$22.2 M (‑C$5.0 M, ‑18.4% YoY).
• EPS Diluted: $1.76 (‑$2.52, ‑58.9% YoY).
• Adjusted EPS: $1.47 (‑$0.24, ‑14.0% YoY).
• Free Cash Flow: (C$9.8 M) vs. (C$33.3 M) prior year (+C$23.5 M).
• Operating Cash Flow: C$34.1 M (‑C$69.5 M YoY).
• Net Finance Costs & Other Gains/Losses: C$8.2 M vs. ‑C$29.5 M prior year (+C$37.7 M, +127.8%).
• Head Count: 1,930 employees (‑51 vs. prior year).
• Fleet: 41 aircraft; block hours down 10.1% YoY to 19,153 hrs.

Notable Quotes

“Our disciplined execution and customer‑first operating model delivered fourth quarter EBITDA growth… supported by nearly 17 % domestic revenue growth.” – Pauline Dhillon, CEO

Materiality Assessment: Material – Negative (significant earnings decline and finance cost impact).