Cargojet Profit Jumps 117% to C$19.1 Million in Third Quarter
Key Facts
Cargojet reported on Nov. 11 net income of C$19.1 million for the third quarter ended Sept. 30, 2026, up 117.0% from the same period last year. The company said the increase was C$10.3 million. Revenue rose to C$286.5 million from C$219.9 million, an annual increase of 30.3%. Diluted earnings per share also climbed to C$1.28 from C$0.58, up 120.7%. The results combine strong quarterly growth in revenue and earnings with a decline in free cash flow compared with the previous year.
Most revenue came from domestic network, ACMI and charter services, where revenue rose to C$233.6 million from C$187.1 million, an increase of 24.9%. Fuel surcharge and other revenues totaled C$56.0 million, versus C$40.7 million a year earlier, up 37.6%. The company’s statement presents these items as revenue components, while it did not attribute the quarter’s results growth to international expansion or higher operating volumes. Adjusted earnings before interest, taxes, depreciation and amortization rose to C$90.2 million from C$70.4 million, an increase of 28.1%. The figures show simultaneous growth in revenue from core operating activities and other revenue, alongside an increase in adjusted earnings.
Adjusted EBITDA margin was 31.5%, compared with 32.0% in the third quarter of 2025. Cargojet attributed the margin decline mainly to the dilutive effect of higher fuel surcharge revenue on the reported margin. By contrast, gross profit margin rose to 18.6% from 13.5% a year earlier. The comparison shows the two margins moving in different directions during the quarter: gross margin improved, while adjusted EBITDA margin declined. Free cash flow was C$62.1 million, versus C$152.4 million in the same period a year earlier.
The company said the free cash flow difference was mainly related to higher proceeds from aircraft sale-and-leaseback transactions in 2025. Over a longer period, net income for the nine months ended Sept. 30, 2026, was about C$30.2 million, down 43.7% from C$53.6 million in the corresponding period of 2025. The company reported net income of C$7.0 million in the second quarter of 2026, compared with a loss of C$3.2 million in the second quarter of 2025. That places the third-quarter earnings jump against weaker results over the first nine months of the year compared with the corresponding period. The nine-month and second-quarter figures provide separate time-period context for the reported third-quarter results.
Chief Executive Pauline Dhillon said the company would increase operations during the fourth-quarter peak season to meet rising demand while maintaining service reliability. She added that on-time performance was 99.3% during the third quarter. In its statement, she described the immediate priority: "Our immediate priority is to increase operations to meet higher customer demand while maintaining the service reliability and excellence our customers expect." She also said Cargojet is focused on international strategic growth opportunities, financial discipline, and operational and capital efficiency. The company scheduled its third-quarter results conference call for Nov. 12, 2026, at 8:30 a.m. Eastern time.