Cargojet (CJT) Q1 2026 earnings summary

Executive summary

• Achieved year-over-year revenue growth of 2% to CAD 254.7 million despite global disruptions, fuel price volatility, and international trade uncertainty.

• Maintained industry-leading on-time performance at 99.2% and demonstrated operational resilience in a challenging environment.

• Charter revenues rose 26.3%, offsetting declines in ACMI revenue, while domestic revenues remained steady.

• Leveraged a flexible fleet and cost structure to protect margins and capitalize on new charter opportunities.

• Focused on disciplined asset deployment and selective growth in underserved markets.

Financial highlights

• Q1 2026 revenue was CAD 254.7 million, up CAD 4.8 million (2%) from Q1 2025.

• Adjusted EBITDA rose to CAD 81.9 million, with a stable margin of 32.2%.

• Free cash flow improved to CAD 87.4 million, driven by asset disposals and higher operating cash flow.

• Net earnings dropped 91.5% to CAD 4.1 million, mainly due to lower gross margin, higher SG&A, and increased finance costs.

• Net Debt reduced to CAD 915.2 million, down CAD 72.7 million from year-end 2025.

Outlook and guidance

• Expect continued volatility in fuel prices, with Q2 likely to see more impact due to a one-month fuel surcharge lag.

• Domestic network outlook remains strong, driven by e-commerce growth and resilient consumer demand.

• Charter and ACMI opportunities expected to remain steady, with new markets being explored.

• Focus remains on disciplined capital allocation, maintaining leverage below 2.5x, and pursuing accretive growth.

• Plans to continue rationalizing costs and capital expenditures to generate cash and strengthen customer relationships.