Chorus Aviation (CHR) Q2 2025 earnings summary

Executive summary

• Reported strong Q2 2025 results with net income of $32.4 million, reversing a prior net loss, driven by the RAL business sale, Voyageur growth, and lower corporate costs.

• Adjusted earnings per share reached $0.66, up from $0.07 year-over-year, with adjusted earnings available to common shareholders at $17.2 million.

• Initiated a quarterly dividend of CAD 0.08 per share, targeting 25% of free cash flow after debt repayments, and completed $27.2 million in share buybacks.

• Announced the strategic acquisition of Elisen & Associates Inc. to enhance aerospace engineering and MRO capabilities.

• Announced redemption of Series B Debentures for $28.7 million to strengthen the balance sheet.

Financial highlights

• Adjusted EBITDA for Q2 2025 was $51.3 million, up $0.8 million year-over-year, mainly due to Voyageur's strong performance and lower overhead.

• Free cash flow increased to $34.6 million, a rise of $6.4 million year-over-year.

• Year-to-date adjusted EBITDA was $108.2 million, up $3.7 million from the prior year period.

• Net income from continuing operations for the first half of 2025 was $51.4 million, up $37.5 million year-over-year.

• Liquidity stood at CAD 246.5 million as of June 30, 2025.

Outlook and guidance

• Voyageur is expected to achieve approximately CAD 150 million in total revenue for 2025, reaffirming previous guidance.

• Jazz's Fixed Margin under the CPA is forecasted at no less than $59.6 million in 2025 and $43.9 million in 2026, with predictable free cash flow from aircraft leases.

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

• Updated FX outlook: U.S. to Canadian dollar rate forecasted at CAD 1.35 for the remainder of 2025 and 2026, down from CAD 1.40.

• No material impact on net results from FX changes after debt payments.