Cargojet Inc. (TSX:CJT), a leading Canadian air cargo provider, has released its financial results for the first quarter of 2025, ending March 31.
The company reported impressive growth, showcasing its resilience and adaptability despite market turbulence.
With record-breaking revenue, improved earnings, and sound operational performance, Cargojet bolstered its position in the air cargo sector, despite US-Canada trade tensions.
Cargojet Q1 Performance
Record Revenue Growth
Cargojet achieved a record first quarter revenue of $249.9 million, marking an 8.1% increase from $231.2 million in Q1 2024. The company’s core segments—domestic network, ACMI (Aircraft, Crew, Maintenance, and Insurance), and All-in Charter—drove this growth.
They generated $210.2 million compared to $181.0 million in the same period last year. This represents a robust 16.1% year-over-year increase, highlighting the strength of Cargojet’s diversified service offerings.
Strong Financial Performance
The company’s Adjusted EBITDA reached $80.8 million, up from $78.4 million in Q1 2024, resulting in a solid 32.3% Adjusted EBITDA margin.
Net earnings also saw significant improvement, climbing 47.7% to $48.0 million from $32.5 million in the prior year. This translated to a 58.2% increase in earnings per share (basic), reaching $3.07.
These figures reflect Cargojet’s disciplined cost management and ability to maintain profitability amid inflationary pressures and geopolitical challenges.
Operational Performance
Cargojet set a new benchmark for reliability, achieving a record on-time arrival performance of 99.1% within 15 minutes of scheduled arrival times.
This exceptional performance underscores the company’s dedication to meeting customer expectations and maintaining its reputation as a trusted partner in the air cargo sector.
Navigating Global & Regional Challenges
The global air cargo industry faces headwinds, including trade wars, supply chain disruptions, and currency volatility. However, Cargojet’s leadership remains optimistic about future opportunities.
“Our diversified portfolio of domestic, charter, and ACMI services performed exceptionally well, posting combined growth of 16.1%,” said Jamie Porteous, Co-Chief Executive Officer.
He noted that anticipated shifts in North American supply chains, driven by trade uncertainties, are likely to increase direct cargo flows into Canada.
“With the backdrop of trade wars and expected decoupling of North American supply chains, more cargo is expected to enter Canada directly from the rest of the world to mitigate the uncertainty of tariffs.”
Cargojet actively positions itself to leverage these trends, guiding customers through evolving global supply chain dynamics.
Pauline Dhillon, Co-Chief Executive Officer, emphasized the company’s focus on operational efficiency and customer satisfaction.
“Despite rising costs and geopolitical tensions, we’ve maintained strong margins while exceeding our on-time performance targets,” she said.
“Our agility in adapting to a fast-changing environment sets us apart. This enables us to win more business in a competitive market.”
Looking Ahead
Cargojet’s Q1 2025 results demonstrate its ability to thrive in a challenging environment. The carrier leveraged its diversified revenue streams and maintained cost discipline. It’s operational performance metrics show it delivered strong service reliability. There is little more that you can ask from an operator in its quarterly performance.
As global trade patterns evolve, Cargojet bolsters its reputation for efficient and reliable logistics solutions.
With a strong financial foundation and a customer-centric approach, Cargojet is poised for continued success in 2025 and beyond.
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