MISSISSAUGA, ON, Feb. 24, 2026 /CNW/ - Cargojet Inc. ("Cargojet" or the "Corporation") (TSX:CJT) today announced financial results for the fourth quarter and year ended December 31, 2025.
"Our disciplined execution and customer-first operating model delivered fourth quarter EBITDA growth of $3.3 million and margin expansion of 210 basis points year-over-year, supported by nearly 17% domestic revenue growth. Through one of the most challenging winter operating environments in recent years, our team achieved 99% on-time performance, a result that reflects the strength of the best team in the industry. Their professionalism, precision, and relentless execution drive our best-in-class reliability," said Pauline Dhillon, Chief Executive Officer. "We are sincerely grateful to our customers for their continued trust. Performance earns partnership, and we work every day to strengthen that trust. Our priorities remain clear: profitable growth, maximum utilization of our fixed assets and infrastructure, rigorous cost discipline, and an uncompromising focus on safety. This operational excellence and financial discipline are what protect and grow the shareholder value that investors place their trust in us to deliver. I thank our Cargojet team members for setting the standard for this industry, and raising it".
For the quarter ended December 31, 2025:
Adjusted EBITDA(1) (earnings before interest, taxes, depreciation and amortization) was $95.0 million, an increase of $3.3 million or 3.6% compared to the same quarter of the previous year primarily driven by lower direct and SG&A costs excluding depreciation and share-based compensation, partially offset by lower revenue excluding amortization of stock warrant contract assets.
Adjusted EBITDA(1) margin of 33.4%, up 210 basis points compared to the same quarter last year, primarily driven by lower direct and SG&A costs excluding depreciation and share-based compensation, partially offset by lower revenue excluding amortization of stock warrant contract assets.
Total revenues were $284.7 million, a decrease of $8.5 million or 2.9% compared to the same period of the previous year, supported by a $17.4 million or 16.9% year-over-year increase in domestic revenue, more than offset by declines in ACMI and Charter revenues driven primarily by macroeconomic conditions.
Free Cash Flow was an outflow of $9.8 million, an increase of $23.5 million compared to an outflow of $33.3 million in the same quarter last year driven by a decrease in proceeds from disposal of property, plant and equipment and assets held for sale, net of purchases, of $93.0 million, partially offset by a decrease in cash flow from operations of $69.5 million primarily due to changes in non-cash working capital.
Net earnings of $26.6 million, a decrease of $44.6 million or 62.6% compared to net earnings of $71.2 million for the fourth quarter of 2024 primarily driven by an increase of $37.7 million in net finance costs and other gains and losses.
(1) Non-GAAP measures. See "Non-GAAP Financial Measures" section.
FOURTH QUARTER AND FULL YEAR RESULTS
Financial highlights
Three Month Periods Ended
Years Ended
December 31,
December 31,
(Canadian dollars in millions, except where indicated)
2025
2024
Change
%
2025
2024
Change
%
Domestic network, ACMI and charter revenues
$243.0
$250.7
($7.7)
(3.1 %)
$844.9
$828.4
$16.5
2.0 %
Total revenues
$284.7
$293.2
($8.5)
(2.9 %)
$992.7
$1,000.8
($8.1)
(0.8 %)
Net earnings
$26.6
$71.2
($44.6)
(62.6 %)
$80.2
$108.4
($28.2)
(26.0 %)
Adjusted net earnings(1)
$22.2
$27.2
($5.0)
(18.4 %)
$68.1
$86.2
($18.1)
(21.0 %)
EPS Diluted
$1.76
$4.28
($2.52)
(58.9 %)
$5.24
$6.68
($1.44)
(21.6 %)
Adjusted EPS(1)
$1.47
$1.71
($0.24)
(14.0 %)
$4.45
$5.32
($0.87)
(16.4 %)
Adjusted EBITDA (1)
$95.0
$91.7
$3.3
3.6 %
$326.4
$331.4
($5.0)
(1.5 %)
Adjusted EBITDA margin (1) - (%)
33.4 %
31.3 %
2.1 %
32.9 %
33.1 %
(0.2 %)
Net cash from operating activities
$34.1
$103.6
($69.5)
(67.1 %)
$234.6
$328.6
($94.0)
(28.6 %)
Free cash flow (1)
($9.8)
($33.3)
$23.5
(70.6 %)
$11.1
$183.7
($172.6)
(94.0 %)
(1) Non-GAAP Measures
Below is a description of certain non-GAAP financial measures and non-GAAP financial ratios used by the Corporation to provide readers with additional information on its financial and operating performance. Non-GAAP financial ratios are ratios or percentages that are calculated using a non-GAAP financial measure. Such measures are not recognized measures for financial statement presentation under GAAP, do not have standardized meanings, may not be comparable to similar measures presented by other entities and should not be considered a substitute for or superior to GAAP results.
"Adjusted EBITDA" is used by the Corporation to assess earnings before interest, taxes, depreciation, amortization, gain or loss on disposal of capital assets, share-based compensation, gain or loss on disposal of property, plant and equipment and assets held for sale, fair value write-down of assets held for sale and property, plant and equipment, fair value increase or decrease on stock warrant, amortization of stock warrant contract assets, gain or loss on fair value or settlement of swap derivatives, unrealized foreign exchange gains or losses, gains or losses on settlement of debts, share of income or loss in associate, and provision for employee pension, as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other assets. The most directly comparable financial measure disclosed in the Corporation's financial statements is net earnings.
"Adjusted EBITDA margin" is defined as Adjusted EBITDA as a percentage of revenue. Adjusted EBITDA margin is commonly used in the airline industry and is used by the Corporation as a means to measure the operating margin excluding certain items as described above.
"Free Cash Flow" is used by the Corporation to evaluate its financial strength and performance of its business, indicating the amount of cash the Corporation can generate from operations after capital expenditures. Free Cash Flow is defined as cash flows from operating activities less purchases of property, plant and equipment plus proceeds from disposals of property, plant and equipment and assets held for sale, and insurance proceeds related to these assets.
"Adjusted net earnings" and "Adjusted net earnings per share" ("Adjusted EPS") are used to assess the overall financial performance of its business. Adjusted net earnings and adjusted EPS are defined as net earnings and net earnings per basic share excluding impairment and gain on insurance claim, fair value increase or decrease on stock warrant, amortization of stock warrant contract assets, gain or loss on swap derivatives, and unrealized foreign exchange gain or loss, as well as the tax impact of these adjustments where applicable. These items are excluded as they may distort the analysis of certain business trends and render comparative analysis to other airlines less meaningful.
Reconciliations of non-GAAP measures are provided below and in the "Non-GAAP Measures" section of the Corporation's Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") for the three month period ended December 31, 2025 and is available on SEDAR+ at wwww.sedarplus.ca.
Three Month Periods Ended
Years Ended
(Unaudited - Canadian dollars in millions, except where indicated)
December 31,
December 31,
2025
2024
2025
2024
Calculation of EBITDA and Adjusted EBITDA
$
$
$
$
Net (loss) earnings
26.6
71.2
80.2
108.4
Add:
Interest
11.7
13.6
49.7
56.8
Provision of deferred taxes
