Chorus Aviation (CHR) Q4 2025 earnings summary

Executive summary

• Achieved significant milestones in 2025, including major cost reductions, a new quarterly dividend, capital structure optimization, two SIBs, and a substantial reduction in corporate debt.

• Q4 net income from continuing operations was $16.7 million, up $66.1 million quarter-over-quarter, and full-year net income reached $78.7 million, up $94.5 million year-over-year.

• Completed the sale of 9 Q400 aircraft, acquired Elisen & Associates, and announced the acquisition of Kadex Aero Supply for approximately $50 million to strengthen the aviation, aerospace, and defense portfolio.

• Adjusted earnings available to common shareholders rose to $2.27 per share, up 134% year-over-year.

• Announced a 38% increase in quarterly dividend to $0.11 per share and up to $100 million in planned share buybacks over four years.

Financial highlights

• Adjusted earnings per share for 2025 reached $2.27, a $1.30 or 134% increase over 2024.

• Q4 adjusted earnings per share were $0.57, up 68% year-over-year, mainly due to lower net interest expense.

• Adjusted EBITDA for the year was $206.9 million, down $2.2 million year-over-year; Q4 adjusted EBITDA was $47.1 million, down from $51 million in Q4 2024, due to lower aircraft leasing revenue.

• Free cash flow for the year was $135.3 million, up $16.5 million year-over-year; Q4 free cash flow was $27 million, consistent with the prior year.

• Year-end leverage ratio was 1.7, up from 1.4, due to excess cash and SIB investment.

Outlook and guidance

• 2026 guidance: Adjusted EBITDA expected between $170 million and $185 million; free cash flow between $100 million and $110 million.

• Capital allocation plan anticipates $500–550 million in free cash flow and net proceeds from asset sales over the next four years.

• Quarterly dividend increased to $0.11 per share, targeting 25% of free cash flow after debt payments.

• Commitment to purchase up to $100 million in shares over four years, with flexibility in execution.

• Repayment of amortizing term loans projected at $64 million, with free cash flow after repayment between $36 million and $46 million.