Cargojet (CJT) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenue surpassing CAD 1 billion for the first time, reflecting strong operational execution and resilience amid economic uncertainty.

• Q4 2024 revenue reached CAD 251 million, up 32% year-over-year, with robust performance in ACMI and charter segments.

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

• Maintained strong on-time performance at 99.1% despite labor disruptions and challenging weather.

• Block hours increased 16% in Q4, supporting improved fleet utilization.

Financial highlights

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

• Q4 revenue rose 32.1% year-over-year to CAD 293.2 million; full-year revenue up 14.1% to CAD 1,000.8 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 was CAD 103.6 million, up from CAD 31 million last year; full-year adjusted free cash flow was CAD 183.7 million versus CAD 64.4 million in 2023.

• Net debt-to-adjusted EBITDA leverage ratio improved to 2.3x from 2.6x at year-end 2023.

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 service and charter growth.

• Margins expected to normalize as one-time ramp-up costs subside; target 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.

• Management remains focused on operational efficiency, cost rationalization, and strategic flexibility to capture growth and protect margins.