Canada's Chorus Aviation Q2 net income drops on foreign exchange impact

Chorus Aviation

04/08/2026 22:13

Overview
Canada aviation services group's Q2 Adjusted EPS and Adjusted Net Income beat analyst expectations
Q2 Adjusted EBITDA also beat estimates; operating revenue rose 7.6% yr/yr
Company returned C$17.3 mln to shareholders via repurchases and dividends; completed KADEX acquisition

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

Result Drivers
VOYAGEUR AND KADEX CONTRIBUTIONS - Higher parts sales from Voyageur and incremental sales from KADEX added C$6.5 mln to Adjusted EBITDA, helping offset declines in contracted revenues
AIRCRAFT SALES - Proceeds from the sale of four aircraft in the quarter resulted in a gain of C$2.5 mln, supporting adjusted net income
FOREIGN EXCHANGE IMPACT - Adjusted net income benefited from a positive C$2.8 mln change in foreign exchange, but net income was hurt by a negative C$19.7 mln change in net unrealized foreign exchange

Company press release: ID:nCNWQf08va

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Operating Revenue
 
C$349.42 mln
 
Q2 Adjusted EPS
Beat
C$0.83
C$0.54 (6 Analysts)
Q2 Adjusted Net Income
Beat
C$19.06 mln
C$12.36 mln (5 Analysts)
Q2 Net Income
 
C$13.82 mln
 
Q2 Adjusted EBITDA
Beat
C$50.74 mln
C$46.18 mln (6 Analysts)
Q2 Operating Expenses
 
C$324.55 mln
 
Q2 Operating Income
 
C$24.87 mln
 
Q2 Pretax Profit
 
C$19.64 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$31.00, about 26% above its July 31 closing price of C$24.60
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
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Aug 3 - WestJet resumes operations after tentative deal ends cabin crew strike

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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.)