Cargojet (CJT) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenue surpassing CAD 1 billion for the first time, with Q4 2024 revenue of CAD 251 million, up 32% year-over-year, reflecting strong operational execution and resilience amid economic uncertainty.

• Demonstrated resilience and operational excellence by capitalizing on new market opportunities, especially in ACMI and charter segments.

• Fourth quarter saw 16% growth in block hours and improved asset utilization, despite challenging weather and labor disruptions during peak season.

Financial highlights

• Q4 2024 revenue rose 32.1% year-over-year to CAD 251 million; full-year revenue up 14.1% to CAD 1,000.8 million.

• ACMI revenue grew 29% and all-in charter revenue surged 136% versus Q4 2023.

• Adjusted EBITDA for Q4 was CAD 91.7 million, up 12.4% year-over-year; full-year Adjusted EBITDA up 10.1% to CAD 331.4 million.

• Net earnings for Q4 were CAD 71.2 million, reversing a net loss of CAD 34.9 million in Q4 2023; full-year net earnings rose 190.6% to CAD 108.4 million.

• Operational cash flow in Q4 reached CAD 103.6 million, compared to CAD 31 million last year; full-year net cash from operations increased 71.2% to CAD 328.6 million.

Outlook and guidance

• Expect continued double-digit growth in ad hoc charter business and high single-digit growth in ACMI and domestic segments for 2025.

• Block hours projected to increase sequentially in early 2025, driven by expanded China and charter operations.

• Margins expected to normalize as one-time ramp-up costs subside, targeting mid-30% EBITDA margin.

• Growth CapEx for 2025 estimated at CAD 80–85 million; maintenance CapEx at CAD 160–180 million, mainly for engine overhauls.

• Plans to continue rationalizing costs and capital expenditures, strengthen customer relationships, and drive shareholder value.