Republic Airways (RJET) Q4 2025 earnings summary

Executive summary

• Completed a transformational, debt-free merger with Mesa, expanding to 306–311 aircraft and 8,400 associates, and strengthening partnerships with major airlines.

• Achieved strong Q4 and full-year 2025 results, with net income rising to $76.2 million and revenues up 13.7% to $1.7 billion, despite operational headwinds such as a government shutdown and severe weather.

• Maintained industry-leading operational reliability, with nearly 100% controllable completion on most days and high aircraft utilization.

• Focused on workforce development, advanced training, and a positive employee culture to drive recruitment and retention.

• Strategic focus on long-term value creation through targeted investments in training, technology, and fleet growth.

Financial highlights

• Q4 2025 revenue rose 21% year-over-year to $464 million; adjusted EBITDAR up 26–27% to $83 million; adjusted EPS $0.54, excluding merger-related items.

• Full-year 2025 adjusted net income was $114 million ($2.80 per share), with adjusted EBITDAR of $342 million, up 31% from 2024.

• Generated $322 million in cash from operations and ended 2025 with $296.5 million in cash and equivalents.

• Leverage improved from 3.2x to 2.7x year-over-year, with a target below 2.2x by end of 2026.

• Q4 net income was $5 million ($0.12 per diluted share); adjusted Q4 net income was $22.9 million ($0.54 per share).

Outlook and guidance

• 2026 guidance: block hours expected to grow to at least 865,000, revenues projected at $2 billion, and adjusted EBITDAR to exceed $380 million.

• CapEx for 2026 expected at $90 million net of new financings; $165 million in debt reduction planned.

• Integration activities to continue through 2026, with substantial completion by end of 2027.

• Long-term Embraer delivery schedule through 2029, with 26–29 future unallocated deliveries.