Cargojet Inc

Latest Results (19.04.2026):

Cargojet Inc's fourth quarter of 2025 results show operational resilience with stronger adjusted EBITDA and margin expansion despite lower total revenues and a materially lower net profit. Adjusted EBITDA rose to $95.0 million (up $3.3M or 3.6% year‑over‑year) and adjusted EBITDA margin widened to 33.4% (up 210 bps). Total revenues were $284.7 million (down 2.9% YoY) while net earnings fell to $26.6 million (down $44.6M or 62.6%), driven largely by higher net finance costs and other items. Free cash flow improved versus the prior-year quarter but remained a small outflow.

Adjusted EBITDA & Margin

Adjusted EBITDA was $95.0 million for Q4 2025, up $3.3 million (3.6%) versus Q4 2024. Adjusted EBITDA margin expanded to 33.4% (up 210 basis points YoY), reflecting lower direct and SG&A costs (excluding depreciation and share‑based compensation).

Revenue Mix

Total revenues for Q4 2025 were $284.7 million, down $8.5 million (2.9%) YoY. Domestic revenue increased strongly (+$17.4M or ~16.9%), but that was more than offset by declines in ACMI and Charter revenues and lower fuel surcharge/other revenues.

Net Earnings & EPS

Net earnings were $26.6 million in Q4 2025, down $44.6 million (62.6%) from Q4 2024. Diluted EPS was $1.76 (vs. $4.28 prior year). Adjusted net earnings were $22.2 million and adjusted EPS $1.47 (down 18.4% and 14.0% YoY, respectively).

Key Drivers of the Net Earnings Drop

The primary driver of the net earnings decline was a $37.7 million increase in net finance costs and other gains/losses. Non‑operational fair value and financing items (including warrant fair value adjustments and swap derivative impacts) materially affected GAAP profitability.

Cash Flow & Capital

Net cash from operating activities was $34.1 million in Q4 (down $69.5M YoY). Free cash flow was a negative $9.8 million, improved from a ($33.3M) outflow a year earlier — the improvement partly reflects lower proceeds from disposals and differences in capex and disposals between periods.

Operational Performance

Operationally Cargojet reported strong execution with 99% on‑time performance during a difficult winter period. Block hours declined ~10.1% YoY (19,153 vs 21,307) while the cargo fleet remained at 41 aircraft and head count decreased modestly to 1,930.

Non‑GAAP Measures & One‑time Items

Management highlights adjusted measures (Adjusted EBITDA, Adjusted EPS, Free Cash Flow) that exclude items such as stock warrant fair value movements, swap derivative gains/losses, and certain disposals. These adjustments notably influenced year‑over‑year comparability in Q4 2025.

Management Commentary & Priorities

Management emphasized disciplined execution and customer focus, identifying priorities of profitable growth, maximum utilization of fixed assets, rigorous cost discipline and safety. The company reiterated forward‑looking cautions related to risks and uncertainties in its filings.