Chorus Aviation (CHR) Q1 2026 earnings summary

Executive summary

• First quarter 2026 results were in line with expectations, with resilient contracted cash flows and steady execution across all business segments.

• Net income for Q1 2026 was $7.0 million, down from $18.9 million in Q1 2025, reflecting lower aircraft leasing revenue and contracted margin reductions.

• Closed the acquisition of KADEX Aero Supply on April 1, 2026, expected to be immediately accretive to earnings and free cash flow, strengthening diversification and cash flow quality.

• Ongoing focus on disciplined capital allocation, strategic expansion, and continued capital returns to shareholders, supported by strong liquidity and a leverage ratio of 1.5x.

• Addressed the impact and response to the tragic Jazz flight 8646 accident, with ongoing support for affected families.

Financial highlights

• Adjusted EBITDA was CAD 44.3 million, down from CAD 56.9 million in Q1 2025, mainly due to planned step-downs in CPA aircraft leasing and fixed margin revenues.

• Operating revenue for Q1 2026 was $325.4 million, a 6.5% decrease from Q1 2025.

• Free cash flow was CAD 27 million (CAD 1.16 per share), down from CAD 40.6 million (CAD 1.51 per share) in Q1 2025, primarily due to lower adjusted EBITDA.

• Liquidity at March 31, 2026, was CAD 219 million, including CAD 98 million in cash and CAD 121 million in available credit.

• Leverage ratio improved to 1.5 from 1.7 at year-end 2025.

Outlook and guidance

• 2026 Adjusted EBITDA forecasted between $170 million and $185 million; Free Cash Flow expected between $100 million and $110 million.

• Guidance remains unchanged, with management comfortable with current projections and expecting further updates as the year progresses.

• Margins outside the CPA are expected to remain stable or grow, with KADEX contributing to margin growth.

• Working capital expected to remain neutral to positive for the year, with no significant seasonality shifts anticipated post-KADEX.

• Fixed Margin under the CPA set at $43.9 million for 2026, with no further changes expected.