Chorus Aviation (CHR) Q1 2025 earnings summary

Executive summary

• Q1 2025 marked the first full quarter post-sale of Falko and RAL, with results in line with expectations, a strengthened balance sheet, and significant debt reduction and improved liquidity.

• Net income rose to $18.9 million from $12.3 million year-over-year, with continuing operations net income up to $18.9 million from $5.4 million.

• Cost realignment and corporate cost reductions contributed to improved free cash flow, net income, and adjusted EBITDA.

• Voyageur achieved record growth in part sales, contract flying, and specialty MRO, with a major defense contract fully operationalized.

• A Substantial Issuer Bid (SIB) for up to CAD 25 million was launched, supplementing CAD 53 million in share repurchases since 2022, reflecting a focus on shareholder value.

Financial highlights

• Adjusted EBITDA for Q1 2025 was CAD 56.9 million, up CAD 2.8 million year-over-year.

• Adjusted earnings per share rose to CAD 0.57, an increase of CAD 0.44 per share from Q1 2024.

• Free cash flow reached CAD 40.6 million, up CAD 9.9 million from the prior year.

• Operating revenue was $348.1 million, down 2.9% year-over-year, while operating income increased 6.3% to $29.7 million.

• Voyageur revenues were CAD 37.7 million, a 39% increase year-over-year, driven by part sales.

Outlook and guidance

• Voyageur is on track to achieve its CAD 150 million revenue target for 2025.

• The company expects continued growth in part sales and specialty operations, with organic and potential bolt-on M&A opportunities.

• Jazz's CPA provides a fixed margin regardless of flying levels, ensuring predictable earnings and free cash flow.

• Fixed Margin under the CPA is forecast at $59.6 million for 2025 and $43.9 million for 2026, with total revenue from aircraft leasing and margin at $123 million in 2025.

• Capital expenditures for 2025 are projected between $30.5 million and $45.5 million, including maintenance and aircraft improvements.