Canada's Cargojet Q3 revenue down on weak international demand

Cargojet

05/11/2025 01:19

Overview

Cargojet's Q3 total revenue falls 10.5% yr/yr due to declines in ACMI and Charter revenues

The air cargo carrier's quarterly net earnings fell 70.4% yr/yr to C$8.8 mln

Cargojet reports Q3 adjusted EBITDA margin of 32.0%, down 1.5% yr/yr

Outlook

Cargojet remains optimistic about international trade stabilizing in the longer term, despite macroeconomic headwinds

Result Drivers

DOMESTIC REVENUE GROWTH - Total revenue fall was partially offset by Cargojet's domestic network revenue, which increased by 6.3% yr/yr

MACROECONOMIC IMPACT - Declines in ACMI and Charter revenues driven by macroeconomic conditions

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Net Income
C$8.8 mln
Q3 Operating Cash Flow
C$112.1 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "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$140.00, about 42.6% above its November 4 closing price of C$80.32

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nCNWJZhWfa

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(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.)