Chorus Aviation (CHR) Q4 2025 earnings summary

Executive summary

• Achieved a pivotal year with significant cost reductions, capital structure optimization, and a 134% increase in adjusted earnings per share year-over-year.

• Q4 net income from continuing operations was $16.7 million, up $66.1 million quarter-over-quarter, and full-year net income reached $78.7 million, up $94.5 million year-over-year.

• Announced a 38% increase in quarterly dividend to $0.11 per share and up to $100 million in planned share buybacks over four years.

• Acquired Elisen & Associates and announced the acquisition of Kadex Aero Supply for approximately $50 million, expanding into OEM parts and consumables.

• Strengthened position in aviation, aerospace, and defense with a diversified business portfolio.

Financial highlights

• Adjusted earnings per share for 2025 reached $2.27, up 134% from $0.97 in 2024.

• Q4 adjusted earnings per share were $0.57, a 68% increase year-over-year.

• Adjusted EBITDA for the year was $206.9 million, a decrease of $2.2 million year-over-year.

• Free cash flow for the year was $135.3 million, up $16.5 million year-over-year.

• Year-end leverage ratio increased to 1.7 from 1.4, reflecting changes in cash and debt.

Outlook and guidance

• 2026 guidance: Adjusted EBITDA expected between $170 million and $185 million; free cash flow between $100 million and $110 million.

• Anticipated generation of $500–550 million in free cash flow and net asset sale proceeds over the next four years.

• Quarterly dividend increased to $0.11 per share, reflecting 25% of free cash flow after debt payments.

• Commitment to purchase up to $100 million in shares over four years, with a flexible approach to capital allocation.

• Repayment of amortizing term loans projected at $64 million, with free cash flow after repayment between $36 million and $46 million.