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 and volatile geopolitical conditions.

• Transitioned to a single CEO structure, emphasizing sharpened accountability and disciplined execution.

• Maintained industry-leading on-time performance at 99% during peak season and challenging winter conditions, reflecting operational excellence.

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

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

Financial highlights

• Q4 total revenues were $284.7 million, down 2.9% year-over-year, with domestic overnight revenue up 17% to CAD 120.2 million and full-year growth of nearly 14%.

• Adjusted EBITDA for Q4 was $95 million (up 3.6% year-over-year) with a margin of 33.4%, up from 31.3%.

• 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.

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

• CapEx for Q4 2025 was $45.6 million, significantly lower than Q4 2024's $136.9 million.

Outlook and guidance

• Global uncertainty and limited forward visibility expected to persist; focus remains on disciplined cost management, capital deployment, and profitable growth.

• New charter and scheduled services in the Americas and Europe expected to offset lost China contract revenue in 2026.

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

• Cautiously optimistic for continued e-commerce-driven domestic growth, targeting single-digit growth in Q1 2026.

• Plans to continue rationalizing costs and capital expenditures to generate cash and drive shareholder value.