Canada's Chorus Aviation Q1 adjusted income falls on lower aircraft leasing revenue

Chorus Aviation

07/05/2026 22:21

Overview

Canada regional aviation firm's Q1 adjusted net income falls, but beat analyst expectations

Q1 adjusted EBITDA missed analyst expectations

Company completed KADEX Aero Supply acquisition, expanding aftermarket and defence supply capabilities

Outlook

Chorus sees 2026 Adjusted EBITDA between C$170 mln and C$185 mln

Company expects 2026 Free Cash Flow of C$100 mln to C$110 mln

Chorus forecasts 2026 capital expenditures of C$36.5 mln to C$51.5 mln

Result Drivers

LOWER AIRCRAFT LEASING REVENUE - Decrease in aircraft leasing revenue under the CPA due to expected changes in lease rates and a lower US dollar exchange rate

CONTRACTED FIXED MARGIN - Decline in Fixed Margin as per contract terms contributed to lower earnings

LOWER PARTS SALES AND CONTRACT FLYING - Reduced Voyageurs parts sales and contract flying weighed on results

Company press release: ID:nCNWj6K0Ma

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Operating Revenue
C$325.42 mln
Q1 Adjusted Net Income
Beat
C$12.63 mln
C$11.93 mln (4 Analysts)
Q1 Net Income
C$7.001 mln
Q1 Adjusted EBITDA
Miss
C$44.31 mln
C$45.55 mln (5 Analysts)
Q1 Operating Expenses
C$307.27 mln
Q1 Operating Income
C$18.15 mln
Q1 Pretax Profit
C$10.97 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the airlines peer group is "buy"

Wall Street's median 12-month price target for Chorus Aviation Inc is C$30.00, about 24.4% above its May 6 closing price of C$24.12

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 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.)