Chorus Aviation (CHR) Q1 2026 earnings summary

Executive summary

• Q1 2026 results reflected resilient contracted cash flows, steady execution, and a focus on building a diversified, cash-generating portfolio in aviation, aerospace, and defense.

• Net income for Q1 2026 was $7.0 million, down from $18.9 million in Q1 2025, with Adjusted Net Income at $12.6 million and Adjusted EBITDA at $44.3 million, both lower year-over-year.

• Closed the acquisition of KADEX Aero Supply on April 1, 2026, expected to be immediately accretive and enhance diversification and aftermarket capabilities.

• Disciplined capital allocation continued, including dividends, share buybacks, and strategic investments, supported by strong liquidity and a leverage ratio of 1.5x.

• Addressed the impact and response to the Jazz-operated flight accident at LaGuardia, with continued support for affected parties.

Financial highlights

• Operating revenue for Q1 2026 was $325.4 million, a 6.5% decrease from Q1 2025.

• Adjusted EBITDA was $44.3 million, down from $56.9 million in Q1 2025, mainly due to planned step-downs in CPA revenues.

• Adjusted Net Income per share was $0.54, compared to $0.57 in Q1 2025.

• Free Cash Flow was $27.0 million (or $1.16 per share), down from $40.6 million (or $1.51 per share) in Q1 2025.

• Liquidity at quarter-end was CAD 219 million, with a leverage ratio of 1.5.

Outlook and guidance

• 2026 Adjusted EBITDA forecasted between $170 million and $185 million; Free Cash Flow expected between $100 million and $110 million.

• Guidance remains unchanged; management expects KADEX to be immediately accretive.

• Margins outside the CPA are expected to remain stable or grow, with KADEX contributing to margin improvement.

• Defense and MRO segments expected to see lumpy but positive growth; contract flying to stabilize post-UN contract wind-down.

• Fixed Margin under the CPA set at $43.9 million for 2026, with no further changes expected.