Cargojet Reports Highest Ever Third Quarter Revenue
Revenue increased by 30.3% year over year to a third quarter record of $286.5 million; net earnings increased 117.0% to $19.1 million; Adjusted EBITDA(1) grew by 28.1% to a third quarter record of $90.2 million
MISSISSAUGA, ON, Nov. 11, 2026 /CNW/ -- Cargojet Inc. ("Cargojet" or the "Corporation") (TSX: CJT) today announced financial results for the third quarter ended September 30, 2026.
"Cargojet delivered record third-quarter revenue and Adjusted EBITDA, reflecting our team's strong execution and continued focus on revenue quality, cost control, network efficiency and asset utilization. Over the past year, we have taken decisive steps to strengthen our business while maintaining the flexibility to adapt to changing market conditions and shifting global trade patterns. These efforts contributed to a 117% increase in net earnings to $19.1 million and $62.1 million in free cash flow. Looking ahead, we remain focused on pursuing strategic international growth opportunities, maintaining strong financial discipline and driving operational and capital efficiency to deliver sustainable long-term shareholder value", said Pauline Dhillon, Chief Executive Officer.
"As we enter the busy fourth-quarter peak season, our immediate priority is to ramp up operations to meet increased customer demand while maintaining the reliability and service excellence our customers expect. Our commitment to service excellence was demonstrated by 99.3% on-time performance during the third quarter and further recognized with the 2026 Shipper's Choice Award in the Air Freight Category from Inside Logistics. This recognition reflects the trust our customers place in Cargojet and the dedication of our entire team, whom I sincerely thank for their outstanding efforts" Dhillon added.
Third Quarter Fiscal 2026 Highlights:
For the quarter ended September 30, 2026:
- Total revenue was $286.5 million, an increase of $66.6 million, or 30.3%, compared with the same quarter last year.
- Net earnings were $19.1 million, an increase of $10.3 million, or 117.0%, compared with the third quarter of 2025.
- Adjusted EBITDA was $90.2 million, an increase of $19.8 million, or 28.1%, compared with the same quarter last year.
- Adjusted EBITDA margin(1) was 31.5%, compared with 32.0% in the prior-year quarter, primarily reflecting the dilutive impact of higher fuel surcharge revenue on the reported margin.
- Free Cash Flow(1) was $62.1 million, compared with $152.4 million in the prior-year quarter with the year-over-year difference primarily attributable to higher proceeds from sale and leaseback arrangements in 2025.
(1) Non-GAAP measures. See "Non-GAAP Financial Measures" section. |
SELECTED FINANCIAL DATA | ||||||||||
(Canadian dollars in millions, except where indicated) | ||||||||||
Three Month Periods Ended | Nine Month Periods Ended | |||||||||
September 30, | September 30, | |||||||||
2026 | 2025 | Change | % | 2026 | 2025 | Change | % | |||
Domestic network, ACMI and charter revenues | $233.6 | $187.1 | $46.5 | 24.9 % | $670.6 | $601.9 | $68.7 | 11.4 % | ||
Total revenues | $286.5 | $219.9 | $66.6 | 30.3 % | $817.0 | $708.0 | $109.0 | 15.4 % | ||
Net earnings | $19.1 | $8.8 | $10.3 | 117.0 % | $30.2 | $53.6 | ($23.4) | (43.7 %) | ||
Adjusted net earnings(1) | $18.0 | $4.9 | $13.1 | 267.3 % | $36.9 | $45.9 | ($9.0) | (19.6 %) | ||
EPS Diluted | $1.28 | $0.58 | $0.70 | 120.7 % | $2.03 | $3.46 | ($1.43) | (41.3 %) | ||
Adjusted EPS(1) | $1.21 | $0.32 | $0.89 | 278.1 % | $2.48 | $3.00 | ($0.52) | (17.3 %) | ||
Adjusted EBITDA (1) | $90.2 | $70.4 | $19.8 | 28.1 % | $259.4 | $231.4 | $28.0 | 12.1 % | ||
Adjusted EBITDA margin (1) - (%) | 31.5 % | 32.0 % | (0.5 %) | 31.8 % | 32.7 % | (0.9 %) | ||||
Net cash from operating activities | $86.9 | $112.1 | ($25.2) | (22.5 %) | $253.0 | $204.9 | $48.1 | 23.5 % | ||
Free cash flow (1) | $62.1 | $152.4 | ($90.3) | (59.3 %) | $205.7 | $34.0 | $171.7 | 505.0 % | ||
(1) Non-GAAP Measures
Below is a description of certain non-GAAP financial measures and non-GAAP financial ratios used by the Corporation to provide readers with additional information on its financial and operating performance. Non-GAAP financial ratios are ratios or percentages that are calculated using a non-GAAP financial measure. Such measures are not recognized measures for financial statement presentation under GAAP, do not have standardized meanings, may not be comparable to similar measures presented by other entities and should not be considered a substitute for or superior to GAAP results.
"Adjusted EBITDA" is used by the Corporation to assess earnings before interest, taxes, depreciation, amortization, gain or loss on disposal of capital assets, share-based compensation, gain or loss on disposal of property, plant and equipment and assets held for sale, fair value write-down of assets held for sale and property, plant and equipment, fair value increase or decrease on stock warrant, gain on extinguishment of stock warrant obligations, amortization of contract assets, gain or loss on fair value or settlement of swap derivatives, unrealized foreign exchange gains or losses, gains or losses on settlement of debts and lease termination, share of income or loss in associate, and provision for employee pension, as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other assets. The most directly comparable financial measure disclosed in the Corporation's financial statements is net earnings.
"Adjusted EBITDA margin" is defined as Adjusted EBITDA as a percentage of revenue. Adjusted EBITDA margin is commonly used in the airline industry and is used by the Corporation as a means to measure the operating margin excluding certain items as described above.
"Free Cash Flow" is used by the Corporation to evaluate its financial strength and performance of its business, indicating the amount of cash the Corporation can generate from operations after capital expenditures. Free Cash Flow is defined as cash flows from operating activities less additions to capital assets plus proceeds from disposals of assets and the related notes receivable and proceeds from disposal of investment in associate and related loan repayment.
"Adjusted net earnings" and "Adjusted net earnings per share" ("Adjusted EPS") are used to assess the overall financial performance of its business. Adjusted net earnings and adjusted EPS are defined as net earnings and net earnings per basic share excluding fair value write-down of assets held for sale and property, plant and equipment, fair value increase or decrease on stock warrant, gain on extinguishment of stock warrant obligations, amortization of contract assets, gain or loss on swap derivatives, and unrealized foreign exchange gain or loss, as well as the tax impact of these adjustments where applicable. These items are excluded as they may distort the analysis of certain business trends and render comparative analysis to other airlines less meaningful.
Reconciliations of non-GAAP measures are provided below and in the "Non-GAAP Measures" section of the Corporation's Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") for the three and nine month periods ended September 30, 2026 and is available on SEDAR+ at www.sedarplus.ca.
Three Month Periods | Nine Month Periods | |||
(Unaudited - Canadian dollars in millions, except where indicated) | September 30, | September 30, | ||
2026 | 2025 | 2026 | 2025 | |
Calculation of EBITDA and Adjusted EBITDA | $ | $ | $ | $ |
Net earnings | 19.1 | 8.8 | 30.2 | 53.6 |
Add: | ||||
Interest | 11.6 | 14.3 | 34.8 | 38.0 |
Provision of deferred taxes | 5.7 | 0.9 | 14.1 | 8.1 |
Depreciation and amortization of capital assets | 52.8 | 48.2 | 156.7 | 135.2 |
EBITDA | 89.2 | 72.2 | 235.8 | 234.9 |
Add: | ||||
Share-based compensation | 3.2 | 2.1 | 8.1 | 3.3 |
(Gain) loss on disposal of property, plant and equipment | (0.5) | - | 6.1 | (0.9) |
Fair value write-down of assets held for sale and property, plant and equipment | - | - | - | 7.0 |
Fair value adjustment on warrant valuation and amortization of contract assets | 0.4 | (5.5) | 10.5 | (18.0) |
(Gain) loss on swap derivative | (2.3) | 1.6 | (2.8) | 8.9 |
Unrealized foreign exchange loss (gain) | 0.2 | 0.6 | - | (1.9) |
(Gain) loss on lease termination | (0.1) | - | 2.6 | - |
Gain on extinguishment of stock warrant obligations | - | - | (1.8) | |
Share of net (income) loss in associate | - | (0.6) | 0.1 | (2.1) |
Employee pension | 0.1 | - | 0.8 | 0.2 |
Adjusted EBITDA | 90.2 | 70.4 | 259.4 | 231.4 |
Revenue | 286.5 | 219.9 | 817.0 | 708.0 |
Adjusted EBITDA margin | 31.5 % | 32.0 % | 31.8 % | 32.7 % |
Three Month Periods | Nine Month Periods | |||
(Unaudited - Canadian dollars in millions) | September 30, | September 30, | ||
2026 | 2025 | 2026 | 2025 | |
Calculation of Free Cash Flow | $ | $ | $ | $ |
Net cash from operating activities | 86.9 | 112.1 | 253.0 | 204.9 |
Additions to capital assets | (73.7) | (67.5) | (172.6) | (279.9) |
Proceeds from asset disposals and related notes receivable(1) | 48.9 | 107.8 | 114.5 | 109.0 |
Proceeds from disposal of investment and loan repayment | - | - | 10.8 | - |
Free cash flow | 62.1 | 152.4 | 205.7 | 34.0 |
(1) Includes proceeds of $46.4 million from aircraft sale and leaseback arrangement accounted for as financial liabilities for both the three and nine months ended September 30, 2026 (2025 – $103.5 million). |
Three Month Periods | Nine Month Periods | |||
(Unaudited - Canadian dollars in millions, except where indicated) | September 30, | September 30, | ||
2026 | 2025 | 2026 | 2025 | |
Calculation of Adjusted Earnings and Adjusted EPS | $ | $ | $ | $ |
Net earnings | 19.1 | 8.8 | 30.2 | 53.6 |
Add: | ||||
Fair value write-down of assets held for sale and property, plant and equipment | - | - | - | 7.0 |
Fair value adjustment on stock warrant and amortization of contract assets | 0.4 | (5.5) | 10.5 | (18.0) |
Gain on extinguishment of stock warrant obligations | - | - | (1.8) | - |
(Gain) loss on swap derivative | (2.3) | 1.6 | (2.8) | 8.9 |
Unrealized foreign exchange loss (gain) | 0.2 | 0.6 | - | (1.9) |
Tax impact on items listed above | 0.6 | (0.6) | 0.8 | (3.7) |
Adjusted net earnings | 18.0 | 4.9 | 36.9 | 45.9 |
Weighted average number of shares - basic (in millions of shares) | 14.9 | 15.1 | 14.9 | 15.3 |
Adjusted EPS | 1.21 | 0.32 | 2.48 | 3.00 |
Notice on Forward Looking Statements:
Certain statements contained herein constitute "forward-looking statements", including with respect to the Corporation's intention to continue rationalizing costs and capital expenditures to generate cash, strengthen strategic customer relationships, and drive shareholder value. Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans," "intends," "anticipates," "should," "estimates," "expects," "believes," "indicates," "targeting," "suggests" and similar expressions. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Reference should be made to the Corporation's most recent Annual Information Form ("AIF") filed with the Canadian securities regulators, and its most recent Annual Consolidated Financial Statements and Notes thereto and related MD&A, for a summary of major risks. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. The Corporation cautions that the list of risk factors and uncertainties described in the AIF and MD&A is not exhaustive and other factors could also adversely affect its results. Readers are urged to carefully consider the risks, uncertainties and assumptions in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. The forward-looking information contained herein represents our expectations as of the date hereof (or as the date they are otherwise stated to be made), and are subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws. In the event that we update any forward-looking statement, no inference should be made that we will make additional updates with respect to that statement, related matters, or any other forward-looking statement.
All references to "$" in this press release are to Canadian dollars.
About Cargojet
Cargojet is Canada's leading provider of time sensitive premium air cargo services to all major cities across North America, providing Dedicated, ACMI and International Charter services and carries over 25,000,000 pounds of cargo weekly. Cargojet operates its network with its own cargo fleet of 42 aircraft.
FINANCIAL INFORMATION AND OPERATING STATISTICS HIGHLIGHTS | ||||||||||
(Unaudited - Canadian dollars in millions, except where indicated) | ||||||||||
Three Month Periods Ended | Nine Month Periods Ended | |||||||||
September 30, | September 30, | |||||||||
2026 | 2025 | Change | % | 2026 | 2025 | Change | % | |||
Domestic network, ACMI and charter revenues | $233.6 | $187.1 | $46.5 | 24.9 % | $670.6 | $601.9 | $68.7 | 11.4 % | ||
Fuel surcharge and other revenues | $56.0 | $40.7 | $15.3 | 37.6 % | $160.1 | $124.2 | $35.9 | 28.9 % | ||
Total revenues excluding amortization | $289.6 | $227.8 | $61.8 | 27.1 % | $830.7 | $726.1 | $104.6 | 14.4 % | ||
Amortization of contract assets | ($3.1) | ($7.9) | $4.8 | (60.8 %) | ($13.7) | ($18.1) | $4.4 | (24.3 %) | ||
Total revenues | $286.5 | $219.9 | $66.6 | 30.3 % | $817.0 | $708.0 | $109.0 | 15.4 % | ||
Direct expenses | $233.2 | $190.3 | $42.9 | 22.5 % | $664.1 | $576.1 | $88.0 | 15.3 % | ||
Gross margin | $53.3 | $29.6 | $23.7 | 80.1 % | $152.9 | $131.9 | $21.0 | 15.9 % | ||
Gross margin - (%) | 18.6 % | 13.5 % | 5.1 % | 18.7 % | 18.6 % | 0.1 % | ||||
Selling, general and administrative expenses | $22.3 | $17.5 | $4.8 | 27.4 % | $72.8 | $57.4 | $15.4 | 26.8 % | ||
Net finance costs and other losses | $6.2 | $3.0 | $3.2 | 106.7 % | $35.7 | $14.9 | $20.8 | 139.6 % | ||
Share of (income) loss in associate | $0.0 | ($0.6) | $0.6 | nm | $0.1 | ($2.1) | $2.2 | nm | ||
Earnings before income taxes | $24.8 | $9.7 | $15.1 | 155.7 % | $44.3 | $61.7 | ($17.4) | (28.2 %) | ||
Income taxes | 5.7 | $0.9 | $4.8 | 533.3 % | $14.1 | $8.1 | $6.0 | 74.1 % | ||
Net earnings | $19.1 | $8.8 | $10.3 | 117.0 % | $30.2 | $53.6 | ($23.4) | (43.7 %) | ||
Adjusted net earnings(1) | $18.0 | $4.9 | $13.1 | 267.3 % | $36.9 | $45.9 | ($9.0) | (19.6 %) | ||
Earnings per share | ||||||||||
Basic | $1.28 | $0.58 | $0.70 | 120.7 % | $2.03 | $3.50 | ($1.47) | (42.0 %) | ||
Diluted | $1.28 | $0.58 | $0.70 | 120.7 % | $2.03 | $3.46 | ($1.43) | (41.3 %) | ||
Adjusted(1) | $1.21 | $0.32 | $0.89 | 278.1 % | $2.48 | $3.00 | ($0.52) | (17.3 %) | ||
Adjusted EBITDA (1) | $90.2 | $70.4 | $19.8 | 28.1 % | $259.4 | $231.4 | $28.0 | 12.1 % | ||
Adjusted EBITDA margin (1) - (%) | 31.5 % | 32.0 % | (0.5 %) | 31.8 % | 32.7 % | (0.9 %) | ||||
Net cash from operating activities | $86.9 | $112.1 | ($25.2) | (22.5 %) | $253.0 | $204.9 | $48.1 | 23.5 % | ||
Free cash flow (1) | $62.1 | $152.4 | ($90.3) | (59.3 %) | $205.7 | $34.0 | $171.7 | 505.0 % | ||
Operating statistics (2) | ||||||||||
Operating days (3) | 49 | 49 | - | 0.0 % | 148 | 148 | - | 0.0 % | ||
Average domestic network revenue per operating day (4) | 2.27 | 2.03 | 0.24 | 11.8 % | 2.21 | 2.07 | 0.14 | 6.8 % | ||
Block hours (5) | 18,405 | 15,861 | 2,544 | 16.0 % | 51,186 | 49,046 | 2,140 | 4.4 % | ||
B757-200 | 16 | 16 | - | 16 | 16 | - | ||||
B767-200 | 2 | 3 | (1) | 2 | 3 | (1) | ||||
B767-300 | 24 | 22 | 2 | 24 | 22 | 2 | ||||
Cargo operating fleet | 42 | 41 | 1 | 2.4 % | 42 | 41 | 1.0 | 2.4 % | ||
Head count | 1,867 | 1,838 | 29 | 1.6 % | 1,867 | 1,838 | 29 | 1.6 % | ||
1. | Non-GAAP measures. See "Non-GAAP Financial Measures" section. |
2. | The definitions for the Operating statistics included in this table are provided in the notes below. |
3. | Operating days refer to the days on which the full domestic network air cargo network is in operation. The Corporation's domestic network air cargo network operates primarily from Monday to Thursday with a reduced network operating on Friday, weekends and on certain weekdays that are adjacent to certain statutory holidays. |
4. | Average domestic network revenue per operating day refers to total domestic network revenues earned by the Corporation's per operating day. |
5. | Block hours refer to the total duration of a flight from the time the aircraft releases its brakes when it initially moves from the airport parking area prior to flight, to the time the brakes are set when it arrives at the airport parking area after the completion of the flight. |
SOURCE Cargojet Inc.
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