Chorus Aviation (CHR) Q4 2024 earnings summary

Executive summary

• Completed sale of regional aircraft leasing (RAL) segment for CAD 2 billion (US$607.7 million), using proceeds to reduce debt, redeem preferred shares and debentures, and significantly lower leverage from 3.3 to 1.4 year-over-year.

• Strengthened balance sheet and improved financial flexibility, enabling capital returns, targeted growth investments, and a refocus on core aviation services.

• All subsidiaries performed well in 2024, with Jazz delivering strong contracted earnings and cash flows under the CPA, and Voyager achieving record results and expanding operations.

• Cygnet Aviation Academy expanded, graduating new pilots and building industry partnerships.

• Share consolidation (1-for-7) completed in February 2025 to enhance share attractiveness.

Financial highlights

• Adjusted EBITDA was CAD 52.7 million for Q4 and CAD 211.6 million for the year, down year-over-year.

• Adjusted earnings per share were CAD 0.39 for Q4 and CAD 1.04 for the year; pro forma Adjusted Earnings per share was $2.27 for 2024.

• Free cash flow was CAD 27.5 million in Q4 and CAD 118.8 million for 2024.

• Annual net loss from continuing operations of $15.8 million, compared to net income of $101.6 million in the prior year.

• Recorded a CAD 10.5 million impairment on non-operational Dash 8-300s.

Outlook and guidance

• Voyager is on track to achieve CAD 150 million in revenue in 2025, with strong contracted business and growth momentum.

• Jazz's CPA provides a fixed margin regardless of flying levels, ensuring predictable earnings and cash flows, with the contract running to 2035.

• Fixed Margin under the CPA forecast to be no less than $59.6 million in 2025 and $43.9 million in 2026.

• Capital expenditures for 2025 expected between $30.5 million and $45.5 million.

• Focus remains on strengthening existing businesses in the short term, with longer-term plans for growth through potential acquisitions.