Republic Airways (RJET) Q4 2025 earnings summary

Executive summary

• Completed a transformational, debt-free merger with Mesa Air Group, expanding scale, network, and United partnership, and becoming the largest Embraer jet operator with 306 committed aircraft and 311 in fleet by year-end 2025.

• Achieved strong Q4 and full-year 2025 results, overcoming challenges from a government shutdown and severe weather, and maintaining operational reliability and employee engagement.

• Grew block hour production by 18.2% year-over-year to 699,313 hours, serving 21 million passengers and 800 daily departures.

• Focused on workforce development, advanced training, and a positive employee culture to drive recruitment and retention.

• Maintains long-term partnerships with American, Delta, and United, with diversified fleet and revenue streams.

Financial highlights

• Q4 2025 revenue rose 21% year-over-year to $464 million; adjusted EBITDAR up 26% to $83 million; adjusted EPS $0.54, excluding $15.3 million in executive separation and merger-related items.

• Full-year 2025 revenue increased 14% to $1.7 billion; adjusted EBITDAR up 31% to $342 million; adjusted diluted EPS up 74% to $2.80, excluding $47.1 million in non-recurring items.

• Full-year adjusted net income was $114 million; operating income was $168.3 million, up from $137 million in 2024.

• Generated $322 million in operating cash flow and ended 2025 with $296.5 million in cash and equivalents.

• Leverage ratio improved to 2.7x from 3.2x in 2024.

Outlook and guidance

• 2026 guidance: block hours expected to grow to 865,000+, revenues projected at $2 billion, and adjusted EBITDAR to exceed $380 million.

• CapEx for 2026 expected at $90 million net of new financings; $165 million in debt reduction planned.

• Integration activities to continue through 2026, with substantial completion by end of 2027.

• Long-term target leverage below 1.5x; goal to be below 2.2x by end of 2026.