Cargojet (CJT) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached CAD 249.9 million, up 8.1% year-over-year, marking a record first quarter, with strong growth in domestic, ACMI, and charter segments.

• Adjusted EBITDA grew 3.1% to CAD 80.8 million, with a margin of 32.3%.

• Net earnings rose 47.7% to CAD 48.0 million, with basic EPS up 58.2% to CAD 3.07 compared to Q1 2024.

• On-time performance was 99.1% for the quarter, reflecting operational excellence.

• Management highlighted resilience amid inflation, currency volatility, and geopolitical tensions.

Financial highlights

• Operating cash flow was CAD 64.8 million, down from CAD 80.3 million last year due to non-cash working capital movements.

• Domestic, ACMI, and charter revenues grew 16.1% to CAD 210.2 million year-over-year.

• Adjusted net earnings declined 10.5% to CAD 25.3 million; Adjusted EPS down 4.1% to CAD 1.62.

• Free cash flow was negative CAD 45.9 million versus CAD 168.7 million in Q1 2024, due to higher capital expenditures.

• Gross margin improved to 21.1% from 19.3% year-over-year.

Outlook and guidance

• No change in maintenance or growth CapEx guidance for 2025; maintenance CapEx expected at CAD 160–180 million.

• Three additional freighters to be deployed later in the year, with flexibility to adjust fleet based on demand.

• Management expects continued growth opportunities as supply chains shift and more cargo enters Canada directly.

• Focus remains on disciplined cost management and capital allocation to drive shareholder value.

• Management remains cautious on volume and revenue mix for the rest of the year due to macroeconomic uncertainty.