Canada's Cargojet Q1 net profit drops 91% on higher expenses

Cargojet

04/05/2026 22:26

Overview

Canada air cargo operator's Q1 revenue rose 1.9% yr/yr, driven by charter growth

Adjusted EBITDA for Q1 rose 1.4% yr/yr; adjusted EPS fell 63%

Q1 net earnings dropped 91.5% yr/yr due to lower gross margin and higher expenses

Outlook

Cargojet did not provide specific financial guidance for the current or upcoming quarters

Result Drivers

CHARTER REVENUE GROWTH - Co said Q1 revenue growth was supported by a 26.3% increase in charter revenues

HIGHER EXPENSES - Net earnings fell due to lower gross margin and a 51.5% rise in selling, general and administrative expenses, mostly from higher share-based compensation

MACROECONOMIC PRESSURE - Co cited ongoing international trade uncertainty and macroeconomic conditions as weighing on ACMI revenue and overall results

Company press release: ID:nCNWZPtWwa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Income
C$4.10 mln
Q1 Operating Cash Flow
C$69.90 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the courier, postal, air freight & land-based logistics peer group is "buy"

Wall Street's median 12-month price target for Cargojet Inc is C$120.00, about 54.6% above its May 1 closing price of C$77.62

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 23 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)