Cargojet Announces Second Quarter Financial Results

MISSISSAUGA, ON, Aug. 6, 2025 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX:CJT) today announced financial results for the second quarter ended June 30, 2025.

For the second quarter ended June 30, 2025:

• Total revenues, driven by a 14% increase in Domestic revenues and 22% growth in Charter revenues, came in at $238.2 million, an increase of $7.4 million or 3.2% compared to the same period of previous year.
• Adjusted EBITDA⁽¹⁾ (earnings before interest, taxes, depreciation and amortization) was $80.2 million, an increase of $1.1 million or 1.4% compared to the same quarter of previous year.
• Net loss was $3.2 million, a decrease of $21.8 million or 87.2% compared to a net loss of $25.0 million for the second quarter of 2024.
• Achieved another record On-time Arrival Performance of 99.5% within fifteen minutes of scheduled arrival time during the quarter.

“Cargojet posted strong overall revenues despite ongoing uncertainty and a weakening economic outlook, underscoring the strength of our network. Softness in the ACMI segment from weaker European traffic was more than offset by robust domestic and charter revenue growth, and with the EU–US trade deal now in place, we expect the EU–US corridor to reopen and generate new ACMI and charter opportunities in the coming quarters, said Jamie Porteous, Co–Chief Executive Officer.

“Ensuring that we can deliver shareholder value in any economic cycle remains a clear priority. Our company wide cost management and productivity initiatives produced a year-on-year improvement in adjusted EBITDA and sequential improvement of 140 basis-point increase in adjusted EBITDA margins, despite a 10% drop in block hours flown during Q2 versus the prior year,.” said Pauline Dhillon, Co-Chief Executive Officer.

Second Quarter 2025 Financial Results:

• Total revenue $238.2 million
• Total expenses $212.3 million
• Operating earnings $2.1 million with adjusted EBITDA of $80.2 million
• Net cash flows from operating activities of $28 million
• Net loss of $3.2 million and adjusted⁽¹⁾ earnings per share of $1.02

(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, amortization of stock warrant 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, share of gain 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 purchases of property, plant and equipment plus proceeds from disposals of property, plant and equipment and assets held for sale, and insurance proceeds related to these assets.

“Adjusted net earnings” and “Adjusted net earnings per share” (“Adjusted EPS”) are used to assess the overall financial performance of its business. Prior to the third quarter of 2024, adjusted net earnings and adjusted EPS are defined as net earnings and net earnings per basic share excluding impairment and gain on insurance claim, fair value increase or decrease on stock warrant, amortization of stock warrant contract assets, gain or loss on swap derivatives, and unrealized foreign exchange gain or loss.

These items are excluded as they may distort the analysis of certain business trends and render comparative analysis to other airlines less meaningful. In the third quarter of 2024, the company updated the definition to further exclude the tax impact of the adjustments where applicable as the net earnings and net earnings per share are also after-tax. Wherever presented, prior periods adjusted net earnings and Adjusted EPS are updated accordingly.

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 month period ended June 30, 2025 and is available on SEDAR+ at wwww.sedarplus.ca.

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