Q4 2025 Cargojet Inc Earnings Call Transcript
Key Points
- Cargojet Inc (CGJTF) reported strong adjusted EBITDA margins of 33.4% in Q4 2025, despite a small year-over-year decline in total revenues.
- The domestic overnight business saw a significant revenue increase of almost 17% from the same period last year, driven by continued e-commerce penetration across Canada.
- Cargojet Inc (CGJTF) successfully commenced new charter services between North, Central, and South America, aligning with current fleet capabilities and less impacted trade lanes.
- The company maintained industry-leading on-time performance at 99% during peak 2025, showcasing operational excellence despite challenging conditions.
- Cargojet Inc (CGJTF) completed the divestiture of its last Pratt & Whitney powered aircraft, optimizing its fleet around GE-based engines for better maintenance efficiency.
- Global trade uncertainty and geopolitical conditions continue to limit Cargojet Inc (CGJTF)'s forward visibility, impacting revenue predictability.
- The grounding of MD-11 cargo freighters created capacity challenges, affecting some long-term partners and requiring Cargojet Inc (CGJTF) to adjust operations.
- ACMI revenue declined by $18.9 million year-over-year in Q4 2025 due to disruptions in trans-Atlantic and trans-Pacific trade routes.
- Charter revenue decreased from $64.4 million in Q4 2024 to $58.2 million in Q4 2025, primarily due to unfavorable tariff and trade conditions affecting trans-Pacific routes.
- The suspension of the China charter agreement due to geopolitical and trade uncertainties resulted in the need to find alternative revenue sources.
Good morning everyone.
Good day and welcome to the Cargojet year end conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to David Tomlijenovic, Vice President, Investor relations. Please go ahead.
Good morning everyone and thank you for joining us on this call today.
With me on the call today are Ajay Vermani, Executive Chairman; Pauline Dhillon, Chief Executive Officer; Aaron McKay, Chief Financial Officer; Sanjeev Maini, Vice President of Finance; and Remy Tremblay, General Counsel and Corporate Secretary.
After opening remarks about the quarter, we'll open the call for questions. I would like to point out that certain statements made on this call, such as those relating to our forecast revenues, costs, and strategic plans are forward-looking within the meaning of applicable securities laws. This call
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