Financial Highlights:
- Net income of $32.4 million compared to a net loss of $180.6 million for Q2 2024.
- Net income from continuing operations1 of $32.4 million compared to $8.5 million for Q2 2024.
- Adjusted Earnings available to Common Shareholders2 of $17.2 million compared to $1.9 million for Q2 2024, due to the sale of the RAL business and improved financial results attributable to growth at Voyageur and lower corporate costs.
- Adjusted Earnings available to Common Shareholders of $0.66 per Common Share, basic, compared to $0.07 for Q2 2024.
- Adjusted EBITDA of $51.3 million compared to $50.5 million for Q2 2024.
- Free Cash Flow of $34.6 million compared to $28.2 million for Q2 2024.
- Leverage Ratio of 1.5 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.
HALIFAX, NS, Aug. 5, 2025 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX:CHR) today announced its second quarter 2025 financial results.
“Our second quarter results reflect solid performance on all key financial metrics and concrete actions to return capital to shareholders, while re-investing in Chorus’ growth and high-potential capabilities,” said Colin Copp, President and Chief Executive Officer, Chorus. “Additionally, we announced an agreement in July to acquire Montreal-based Elisen & Associates Inc., a leading provider of aerospace engineering and certification services as a strategic move to support future growth.”
“Voyageur’s continued strong performance, combined with consistent earnings from Jazz’s capacity purchase agreement (CPA) with Air Canada, contributed to these results,” added Mr. Copp. “The second quarter also included an important milestone for Voyageur, as it delivered the first of two Dash 8-300 Fireswift aerial firefighting aircraft on behalf of its customer, Metrea, a global, US-based defense and national security company. We are excited about the opportunity in this area.”
“The initiation of a quarterly dividend that we intend to grow over time with our business was a key step Chorus took to return shareholder value. We also completed $27.2 million in share buybacks so far this year to the end of June through our normal course issuer bid (NCIB) and a substantial issuer bid (SIB),” said Mr. Copp. “To further strengthen our balance sheet, Chorus today announced it will redeem its outstanding Series B Debentures in the principal amount of $28.7 million.”
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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 press release are from continuing operations unless otherwise noted. |
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2 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. |
Second Quarter Summary
In the second quarter of 2025, Chorus reported Adjusted EBITDA from continuing operations of $51.3 million, an increase of $0.9 million compared to the second quarter of 2024 primarily due to:
- an increase in Voyageur’s parts sales, contract flying and MRO activity; and
- a decrease in stock-based compensation of $2.4 million partially 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 the change in fair value of the Total Return Swap offset by an increase in the Common Share price; and
- a decrease in general administrative expenses primarily attributable to lower overhead costs; partially offset by
- a decrease in aircraft leasing revenue under the CPA of $3.4 million primarily due to a change in lease rates on certain aircraft partially offset by a higher US dollar exchange rate; and
- a decrease in capitalization of major maintenance overhauls on owned aircraft of $1.4 million.
Adjusted Net Income from continuing operations was $17.2 million for the quarter, an increase of $6.4 million compared to the second quarter of 2024 primarily due to:
- a $0.9 million increase in Adjusted EBITDA as previously described;
- a decrease in net interest costs of $5.3 million primarily related to the repayment of the Series A Debentures at maturity, the partial repurchase of the Series B Debentures and Series C Debentures and the absence of any draw in the current quarter under the Operating Credit Facility; and
- a decrease of $2.3 million in income tax expense primarily due to an income tax recovery of $3.1 million related to non-capital loss carrybacks resulting from taxes paid on the redemption of the Preferred Shares; partially offset by
- an increase in depreciation expense of $1.2 million primarily attributable to capital expenditures; and
- a negative change in foreign exchange of $0.8 million.
Net income from continuing operations was $32.4 million, an increase of $24.0 million compared to the second quarter of 2024 primarily due to:
- the previously noted increase in Adjusted Net Income of $6.4 million; and
- a positive change in net unrealized foreign exchange of $17.6 million.
Adjusted Earnings available to Common Shareholders from continuing operations was $17.2 million for the quarter, an increase of $15.3 million compared to the second quarter of 2024 primarily due to:
- the previously noted increase in Adjusted Net Income of $6.4 million; and
- the elimination of Preferred Share dividends of $9.0 million due to the redemption of the Preferred Shares.
Year-to-Date Summary
Chorus reported Adjusted EBITDA from continuing operations of $108.2 million for the six months ended June 30, 2025, an increase of $3.7 million compared to the same prior year period primarily due to:
- an increase in Voyageur’s parts sales, contract flying and MRO activity;
- a decrease in stock-based compensation of $2.7 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 the change in fair value of the Total Return Swap offset by an increase in the Common Share price; and
- a decrease in general administrative expenses primarily attributable to lower overhead costs; partially offset by
- a decrease in aircraft leasing revenue under the CPA of $4.2 million primarily due to a change in lease rates on certain aircraft partially offset by a higher US dollar exchange rate; and
- a decrease in capitalization of major maintenance overhauls on owned aircraft of $2.8 million.
Adjusted Net Income from continuing operations of $32.6 million, an increase of $9.2 million compared to the same prior year period primarily due to:
- a $3.7 million increase in Adjusted EBITDA as previously described; and
- a decrease in net interest costs of $10.8 million primarily related to the repayment of the Series A Debentures at maturity, the partial repurchase of the Series B Debentures and Series C Debentures and the absence of any draw in the current quarter under the Operating Credit Facility; partially offset by
- an increase in depreciation expense of $2.3 million primarily attributable to capital expenditures;
- a negative change in foreign exchange of $1.9 million; and
- an increase of $1.2 million in income tax expense primarily due to the increase in EBT, adjusted to remove non-taxable unrealized foreign exchange gains and certain non-deductible expenses partially offset by an income tax recovery of $3.1 million related to non-capital loss carrybacks resulting from taxes paid on the redemption of Preferred Shares.
Net income from continuing operations of $51.4 million, an increase of $37.5 million compared to the same prior year period primarily due to:
- the previously noted increase in Adjusted Net Income of $9.2 million; and
- a positive change in net unrealized foreign exchange of $28.3 million.
Adjusted Earnings available to Common Shareholders from continuing operations was $32.6 million, an increase of $27.0 million compared to the same prior year period primarily due to:
- the previously noted increase in Adjusted Net Income of $9.2 million; and
- the elimination of Preferred Share dividends of $17.8 million due to the redemption of the Preferred Shares.
Consolidated Financial Analysis
This section provides detailed information and analysis about Chorus’ performance from continuing operations for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024.
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(unaudited) (expressed in thousands of Canadian dollars) |
Three months ended June 30, |
Six months ended June 30, |
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|
2025 |
2024(1) |
Change |
Change |
2025 |
2024(1) |
Change |
Change |
|
|
$ |
$ |
$ |
% |
$ |
$ |
$ |
% |
|
|
Operating revenue |
324,612 |
351,218 |
(26,606) |
(7.6) |
672,741 |
709,812 |
(37,071) |
(5.2) |
|
Operating expenses |
300,540 |
326,769 |
(26,229) |
(8.0) |
618,959 |
657,401 |
(38,442) |
(5.8) |
|
Operating income |
24,072 |
24,449 |
(377) |
(1.5) |
53,782 |
52,411 |
1,371 |
2.6 |
|
Net interest expense |
(3,509) |
(8,805) |
5,296 |
(60.1) |
(7,253) |
(18,096) |
10,843 |
(59.9) |
|
Foreign exchange gain (loss) |
12,261 |
(4,510) |
16,771 |
(371.9) |
12,413 |
(14,060) |
26,473 |
(188.3) |
|
Gain on property and equipment |
9 |
15 |
(6) |
(40.0) |
10 |
15 |
(5) |
(33.3) |
|
Income before income tax |
32,833 |
11,149 |
21,684 |
194.5 |
58,952 |
20,270 |
38,682 |
190.8 |
|
Income tax expense |
(396) |
(2,699) |
2,303 |
(85.3) |
(7,582) |
(6,410) |
(1,172) |
18.3 |
|
Net income from continuing operations |
32,437 |
8,450 |
23,987 |
283.9 |
51,370 |
13,860 |
37,510 |
270.6 |
|
Net loss from discontinued operations, net of taxes |
— |
(189,023) |
189,023 |
(100.0) |
— |
(182,123) |
182,123 |
(100.0) |
|
Net income (loss) |
32,437 |
(180,573) |
213,010 |
(118.0) |
51,370 |
(168,263) |
219,633 |
(130.5) |
|
Net (loss) income attributable to non-controlling interest |
— |
(1,100) |
1,100 |
(100.0) |
— |
2,391 |
(2,391) |
(100.0) |
|
Net income (loss) attributable to Shareholders |
32,437 |
(179,473) |
(211,910) |
118.1 |
51,370 |
(170,654) |
222,024 |
(130.1) |
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Adjusted EBITDA(2) |
51,329 |
50,475 |
854 |
1.7 |
108,190 |
104,488 |
3,702 |
3.5 |
|
Adjusted EBT(2) |
17,605 |
13,538 |
4,067 |
30.0 |
40,173 |
29,817 |
10,356 |
34.7 |
|
Adjusted Net Income(2) |
17,209 |
10,839 |
6,370 |
58.8 |
32,591 |
23,407 |
9,184 |
39.2 |
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(1) |
The results of discontinued operations (RAL segment) have been excluded from prior period figures, with … |