Cargojet (CJT) Q4 2025 earnings summary

Executive summary

• Delivered strong Q4 results with adjusted EBITDA growth of $3.3 million (3.6%) and margin expansion of 210 basis points, driven by disciplined execution and a customer-first model despite global trade uncertainty.

• Transitioned to a single CEO structure, emphasizing accountability and operational discipline.

• Maintained industry-leading 99% on-time performance during peak season and challenging winter conditions.

• Domestic revenue grew 16.9% year-over-year, offsetting declines in ACMI and Charter revenues due to macroeconomic conditions.

• Supported partners affected by MD-11 freighter groundings, leading to new charter opportunities.

Financial highlights

• Adjusted EBITDA for Q4 was $95 million, with a margin of 33.4%, up from 31.3% year-over-year.

• Q4 total revenues were $284.7 million, down 2.9% year-over-year, with domestic overnight revenue up 17% to CAD 120.2 million.

• ACMI revenue was CAD 64.6 million, down CAD 18.9 million year-over-year due to shorter routes and lower block hours.

• Charter revenue was CAD 58.2 million, down from CAD 64.4 million in Q4 2024, mainly due to reduced Asian charter activity.

• Net earnings for Q4 were $26.6 million, a decrease of $44.6 million (62.6%) year-over-year, mainly due to higher net finance costs and other gains/losses.

Outlook and guidance

• Expect global uncertainty to persist, limiting forward visibility.

• Cautiously optimistic about ACMI improvement by late 2026 if global conditions stabilize.

• Domestic overnight business expected to benefit from ongoing e-commerce growth in Canada.

• Maintenance CapEx for 2026 projected at CAD 190–210 million gross, with net CapEx after disposals around CAD 160–170 million.

• Focus remains on profitable growth, maximizing asset utilization, cost discipline, and safety.