Announces 38% Increase in Quarterly Dividend, Up to $100 million in Planned Share Buybacks Over Four Years and Agreement to Acquire Kadex Aero Supply1
- Fourth quarter net income from continuing operations2 of $16.7 million, a quarter-over-quarter increase of $66.1 million.
- Full year net income from continuing operations of $78.7 million, a year-over-year increase of $94.5 million.
- Purchased and cancelled 3,759,929 Common Shares, approximately 14% of the December 31, 2024 outstanding Common Shares, for $85.2 million.
- Increased quarterly dividends by 38% bringing it to $0.11 per Common Share, up from $0.08 when initiated in June 2025.
- Announced up to $100 million in planned Common Share buybacks over the next four years.
- Full year Adjusted Earnings available to Common Shareholders3 of $58.6 million, a year-over-year increase of $32.0 million.
- Full year Adjusted Earnings available to Common Shareholders of $2.27 per Common Share, basic, for the year compared to $0.97 for 2024.
- Full year Adjusted EBITDA of $206.9 million, a year-over-year decrease of $2.2 million.
- Full year Free Cash Flow of $135.3 million, a year-over-year increase of $16.5 million.
- Announced agreement to acquire Kadex Aero Supply Limited (“Kadex”), a distributor of aircraft parts and supplies, for a purchase price of approximately $50.0 million.
|
___________ |
|
|
1 |
Please refer to the Corporation’s news releases dated February 12, 2026 for further information regarding the increase in the quarterly cash dividend, the renewal of the NCIB and the Kadex acquisition. The targeted Common Share buyback amount of $100.0 million represents the maximum value Chorus intends to commit to buybacks over the next four years and is dependent on Common Share trading price and approval from the TSX. Please see Chorus’ Investor Presentation dated February 12, 2026 available at Chorus’ website: https://chorusaviation.com/investors/#reports-presentations. Please note this sentence contains forward-looking financial information, readers should refer to the notice below regarding forward-looking financial information. |
|
2 |
The results of discontinued operations (RAL segment) have been excluded from prior period figures, with the exception of net income (loss), in accordance with IFRS 5. All amounts presented and discussed in this press release are from continuing operations unless otherwise noted. |
|
3 |
These are non-GAAP financial measures or non-GAAP ratios that are not recognized measures for financial statement presentation under GAAP. As such, they do not have standardized meanings, may not be comparable to similar measures presented by other issuers and should not be considered a substitute for or superior to GAAP results. Refer to “Non-GAAP Financial Measures” for further information. |
HALIFAX, NS, Feb. 12, 2026 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX:CHR) today announced its fourth quarter 2025 financial results.
“Today’s announcements mark exciting milestones for Chorus, reflecting our execution against our strategy. Our financial results demonstrate strong and stable performance throughout the quarter and year,” said Colin Copp, President and Chief Executive Officer, Chorus. “With our 38% increase in our quarterly dividend, up to $100 million in planned share buybacks over the next four years, and our agreement to acquire Kadex, we are demonstrating our focus on accelerating growth as well as enhancing shareholder returns.”
“Our decision to increase our quarterly dividend to $0.11 per common share reflects our strong Free Cash Flow as well as confidence in the long‑term trajectory of our business. At the same time, our planned share repurchases underscore our commitment to shareholder value,” said Mr. Copp. “Since the beginning of 2025 alone, we have returned over $89 million to shareholders through our dividends and share repurchases.”
“The acquisition of Kadex demonstrates Chorus’ ability to execute against our growth strategy of building higher‑margin platforms and enhancing our overall cash flows. Kadex will also further strengthen our overall aviation, aerospace and defence platforms.”
Q4 Financial Highlights:
- Net income of $16.7 million compared to a loss of $6.6 million for Q4 2024.
- Net income from continuing operations of $16.7 million compared to a net loss of $49.4 million for Q4 2024 primarily due to a positive change in unrealized foreign exchange gains of $28.2 million and the absence of the costs recognized in 2024 related to the redemption of the Preferred Shares of $28.0 million and a 2024 aircraft impairment of $10.5 million.
- Adjusted Earnings available to Common Shareholders of $13.8 million compared to $9.3 million for Q4 2024, primarily due to lower net interest expense partially offset by lower Adjusted EBITDA.
- Adjusted Earnings available to Common Shareholders of $0.57 per Common Share, basic, compared to $0.34 for Q4 2024.
- Adjusted EBITDA of $47.1 million compared to $51.0 million for Q4 2024.
- Free Cash Flow of $27.0 million compared to $27.5 million for Q4 2024.
- Free Cash Flow per Common Share, basic of $1.10 compared to $1.01 for Q4 2024.
- Leverage Ratio of 1.7 compared to 1.4 at December 31, 2024, due to additional cash held at December 31, 2024 as a result of a $58.9 million prepayment of revenue relating to January 2025.
Annual Highlights:
- Net income of $78.7 million compared to a net loss of $156.4 million for 2024.
- Net income from continuing operations of $78.7 million compared to a net loss of $15.8 million for 2024 primarily due to a change in unrealized foreign exchange gains of $43.7 million and the absence of the costs recognized in 2024 related to the redemption of the Preferred Shares of $28.0 million and the 2024 aircraft impairment of $10.5 million.
- Adjusted Earnings available to Common Shareholders of $58.6 million compared to $26.6 million for 2024, primarily due to lower net interest expense.
- Adjusted Earnings available to Common Shareholders of $2.27 per Common Share, basic, compared to $0.97 for 2024.
- Adjusted EBITDA of $206.9 million compared to $209.0 million for 2024.
- Free Cash Flow of $135.3 million compared to $118.8 million for 2024.
- Free Cash Flow per Common Share, basic of $5.25 compared to $4.34 for 2024.
Dividend Declaration
Chorus has announced the declaration of a cash dividend of $0.11 per Class A Variable Voting Share and Class B Voting Share payable on March 31, 2026 to Shareholders of record at the close of business on March 13, 2026. This declared dividend represents a 38% increase from the prior quarterly dividend.
This dividend is an eligible dividend in Canada. It may also be considered a qualified dividend from a U.S. tax perspective; however, shareholders should consult their tax advisor to confirm the treatment of the dividend under U.S. tax laws.
Consolidated Financial Analysis
This section provides detailed information and analysis about Chorus’ performance from continuing operations for the three months and year ended December 31, 2025 compared to the three months and year ended December 31, 2024.
|
(unaudited) (expressed in thousands of Canadian dollars) |
Three months ended December 31, |
Year ended December 31, |
||||||
|
2025 |
2024(1) |
Change |
Change |
2025 |
2024(1) |
Change |
Change |
|
|
$ |
$ |
$ |
% |
$ |
$ |
$ |
% |
|
|
Operating revenue |
320,190 |
353,155 |
(32,965) |
(9.3) |
1,316,498 |
1,404,954 |
(88,456) |
(6.3) |
|
Operating expenses |
299,214 |
339,851 |
(40,637) |
(12.0) |
1,216,893 |
1,312,308 |
(95,415) |
(7.3) |
|
Operating income |
20,976 |
13,304 |
7,672 |
57.7 |
99,605 |
92,646 |
6,959 |
7.5 |
|
Net interest expense |
(3,394) |
(20,479) |
(17,085) |
(83.4) |
(13,798) |
(47,385) |
(33,587) |
(70.9) |
|
Foreign exchange gain (loss) |
5,614 |
(40,126) |
45,740 |
114.0 |
12,814 |
(47,968) |
60,782 |
126.7 |
|
Gain on property and equipment |
9 |
76 |
(67) |
(88.2) |
19 |
96 |
(77) |
(80.2) |
|
Income (loss) before income tax |
23,205 |
(47,225) |
70,430 |
(149.1) |
98,640 |
(2,611) |
101,251 |
(3,877.9) |
|
Income tax expense |
(6,502) |
(2,200) |
(4,302) |
195.5 |
(19,901) |
(13,152) |
(6,749) |
51.3 |
|
Net income (loss) from continuing operations |
16,703 |
(49,425) |
66,128 |
(133.8) |
78,739 |
(15,763) |
94,502 |
(599.5) |
|
Net income (loss) from discontinued operations, net of taxes |
— |
42,829 |
(42,829) |
(100.0) |
— |
(140,686) |
140,686 |
(100.0) |
|
Net income (loss) |
16,703 |
(6,596) |
23,299 |
(353.2) |
78,739 |
(156,449) |
235,188 |
(150.3) |
|
Net income attributable to non-controlling interest |
— |
1,012 |
(1,012) |
(100.0) |
— |
2,051 |
(2,051) |
(100.0) |
|
Net income (loss) attributable to Shareholders |
16,703 |
(7,608) |
(24,311) |
319.5 |
78,739 |
(158,500) |
237,239 |
(149.7) |
|
Adjusted EBITDA(2) |
47,124 |
50,990 |
(3,866) |
(7.6) |
206,883 |
209,037 |
(2,154) |
(1.0) |
|
Adjusted EBT(2) |
17,181 |
13,495 |
3,686 |
27.3 |
78,536 |
59,551 |
18,985 |
31.9 |
|
Adjusted Net Income(2) |
13,827 |
9,342 |
4,485 |
48.0 |
58,635 |
44,446 |
14,189 |
31.9 |
|
(1) |
The results of discontinued operations (RAL segment) have been excluded from prior period figures, with the exception of net income (loss), in accordance with IFRS 5. All amounts presented and discussed in this release are from continuing operations unless otherwise noted. |
|
(2) |
These are non-GAAP financial measures that are not recognized measures for financial statement presentation under GAAP. As such, they do not have standardized meanings, may not be comparable to similar measures presented by other issuers and should not be considered a substitute for or superior to GAAP results. |
Fourth Quarter Summary
In the fourth quarter of 2025, Chorus reported Adjusted EBITDA from continuing operations of $47.1 million, a decrease of $3.9 million compared to the fourth quarter of 2024 primarily due to:
- a decrease in aircraft leasing revenue under the CPA of $3.0 million primarily due to expected changes in lease rates on certain aircraft;
- a decrease in Voyageur’s parts sales, contract flying and MRO activity; and
- a decrease in capitalization of major maintenance overhauls on owned aircraft of $3.5 million; partially offset by
- a decrease in general administrative expenses primarily attributable to lower overhead costs; and
- a decrease in stock-based compensation of $1.4 million due to the recognition of the immediate vesting of certain restricted share units in Q2 2024 related to the sale of the RAL business and a decrease in the Common Share price offset by the change in fair value of the Total Return Swap.
Adjusted Net Income from continuing operations was $13.8 million for the quarter, an increase of $4.5 million compared to the fourth quarter of 2024 primarily due to:
- a decrease in net interest costs of $6.6 million primarily related to the repayment of the Series A Debentures and the Series B Debentures and the partial repurchase of the Series C Debentures in the first quarter of 2025;
- a decrease in depreciation expense of $1.0 million primarily attributable to a change in depreciation estimates on certain aircraft; and
- a decrease of $0.8 million in income tax expense; partially offset by
- a $3.9 million decrease in Adjusted EBITDA as previously described.
Net income from continuing operations was $16.7 million, an increase of $66.1 million compared to the fourth quarter of 2024 primarily due to:
- the previously noted increase in Adjusted Net Income of $4.5 million;
- a realized foreign exchange loss of $31.3 million recognized in 2024 on the settlement of Preferred Shares;
- a positive change in net unrealized foreign exchange of $28.2 million;
- impairment provisions recognized in 2024 of $10.5 million primarily related to the part-out of certain of Voyageur’s non-operational owned aircraft; and
- interest accretion recognized in 2024 on Preferred Shares of $10.4 million; partially offset by
- a realized foreign exchange gain recognized in 2024 of $13.7 million related to US dollar denominated cash held between the dates December 6, 2024 and December 31, 2024 being the dates Chorus …