Cargojet Posts Record Third-Quarter Revenue of C$286.5 Million
Key Facts
Cargojet reported on November 11 results for the third quarter ended September 30, posting record quarterly revenue of C$286.5 million. Revenue increased C$66.6 million, or 30.3%, from C$219.9 million in the same period of 2025, according to the company’s statement. Net income rose to C$19.1 million from C$8.8 million, a year-over-year increase of 117%. Adjusted earnings were C$18.0 million, compared with C$4.9 million a year earlier, while adjusted earnings per share climbed to C$1.21 from C$0.32. The quarterly comparison shows simultaneous growth in revenue, net income and adjusted earnings, while results for the first nine months were weaker on an adjusted earnings basis.
Domestic network, aircraft services and charter revenue came to C$233.6 million, up 24.9% from C$187.1 million in the third quarter of 2025. The category includes domestic network operations, ACMI agreements and charter flights, according to the company’s breakdown. Fuel surcharges and other revenue totaled C$56.0 million, compared with C$40.7 million a year earlier, an increase of 37.6%. Growth in the latter category was faster than in network and services revenue. The company did not describe changes in the two categories as expansion, but reported their values and rates of change as part of its quarterly results.
Gross profit increased to C$53.3 million from C$29.6 million in the year-earlier period. The gross profit margin rose to 18.6%, compared with 13.5% in the third quarter of 2025. These figures reflect an improvement in gross profit and its share of revenue during the quarter. Operationally, flight hours increased to 18,405 from 15,861, a rise of 16.0%. Average domestic network revenue per operating day also rose to C$2.27 million from C$2.03 million, an increase of 11.8%.
Cash flow measures diverged between the quarter and the first nine months. Net cash from operating activities was C$86.9 million in the third quarter, compared with C$112.1 million a year earlier, while the nine-month total rose to C$253.0 million from C$204.9 million. By contrast, quarterly free cash flow fell to C$62.1 million from C$152.4 million in the third quarter of 2025. Cargojet attributed the difference in free cash flow mainly to higher proceeds from sale-and-leaseback arrangements in 2025, when those proceeds totaled C$103.5 million. This means the year-over-year quarterly comparison for free cash flow was affected by proceeds in the prior period, while operating cash for the first nine months increased year over year.
For the first nine months of 2026, revenue rose 15.4% to C$817.0 million from C$708.0 million in the same period of 2025. But adjusted earnings for the period fell 19.6% to C$36.9 million from C$45.9 million. Net income for the period was C$30.2 million, down from C$53.6 million, a decline of 43.7%. These comparisons place the strong third-quarter growth within year-to-date results that showed higher revenue alongside declines in both adjusted earnings and net income. The standalone quarter therefore presents a different picture from results for the period since the start of the year.
Chief Executive Pauline Dhillon said Cargojet is focused on strategic international growth opportunities while maintaining financial discipline and driving operational and capital efficiency. She added that the company had taken steps to strengthen its business and preserve its resilience amid changes in the market and global trade. The statement did not specify how much those steps contributed to quarterly revenue or earnings. Management said on-time performance reached 99.3% in the third quarter. As the fourth-quarter peak season begins, Dhillon said the immediate priority is to scale up operations to meet higher customer demand while maintaining service reliability.
Cargojet operates a network with its own fleet of 42 cargo aircraft, according to the company. Dhillon, Chief Financial Officer Aaron McKay and Vice President of Finance Sanjeev Minhas are scheduled to discuss the quarterly results on a call on November 12, 2026, at 8:30 a.m. Eastern time. The call follows the release of results on November 11. Management’s stated priorities include international growth opportunities, financial discipline, and operational and capital efficiency. In the immediate term, the company is focused on scaling up operations during the peak season while maintaining service reliability.