Chorus Aviation (CHR) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 2025 financial results, with net income rising to $18.9 million from $12.3 million year-over-year, consistent with expectations and strategic plan following the sale of Falko and RAL businesses.

• Proceeds from RAL sale used to significantly reduce debt, lower leverage ratio, and improve liquidity.

• Completed cost realignment, resulting in lower corporate costs and improved free cash flow, net income, and adjusted EBITDA.

• Operational highlights include Jazz's strong CPA performance with Air Canada, Voyageur's record growth, and Cygnet's expansion in pilot training.

• Announced a Substantial Issuer Bid (SIB) to return up to CAD 25 million to shareholders, in addition to CAD 53 million in share repurchases since 2022.

Financial highlights

• Adjusted EBITDA for Q1 2025 was CAD 56.9 million, up CAD 2.8 million year-over-year.

• Adjusted earnings per share reached CAD 0.57, an increase of CAD 0.44 per share from Q1 2024.

• Free cash flow was CAD 40.6 million, up CAD 9.9 million year-over-year.

• Operating revenue was $348.1 million, down 2.9% year-over-year, while operating income increased 6.3% to $29.7 million.

• Voyageur revenues grew 39% to CAD 37.7 million, driven by part sales.

Outlook and guidance

• Voyageur is on track to achieve its CAD 150 million revenue target for 2025.

• Ongoing sale of nine Dash 8-400s as part of planned CPA fleet reductions through 2026.

• Fixed Margin under the CPA is forecast at $59.6 million for 2025 and $43.9 million for 2026, with total revenue from aircraft leasing and margin at $123 million in 2025.

• Capital expenditures for 2025 are projected between $30.5 million and $45.5 million, including maintenance and aircraft improvements.

• No expectation of significant working capital draw for the remainder of the year; working capital swings expected to follow historical patterns.