Cargojet's Record Revenue and Strong Performance in Q4 and Full Year 2024

Cargojet Inc. (TSX: CJT) has announced strong financial results for the fourth quarter and full year ended December 31, 2024, marking a significant milestone in the company's history. The company's diversified business model and strategic focus have proven resilient in the face of economic uncertainty, driving operational efficiency and harnessing new growth opportunities.

Record Revenue and Adjusted EBITDA

Cargojet achieved a record and historic milestone of over $1 billion in revenues for the first time in the company's history in 2024. Total revenue for the year was $1.0 billion, representing a 14.1% increase from the previous year. Revenue from domestic network, ACMI, and All-in Charter for the full year was $828.4 million, up 16.3% from 2023. Adjusted EBITDA for the full year was $331.4 million, a 10.1% increase from 2023.

Improved Asset Utilization and On-Time Performance

Cargojet achieved a 16% growth in block hours flown during the fourth quarter, resulting in improved aircraft fleet and overall asset utilization. The company's dedicated team delivered excellent on-time performance for customers, handling record volumes despite demanding and challenging weather during the holiday peak season. This exceptional performance contributed to a very strong full year and quarter.

Strategic Flexibility and Cost Management

Cargojet's strong, diversified business model has proven resilient in times of economic uncertainty. The company remains focused on driving operational efficiency and maintaining strategic flexibility to harness new growth opportunities and protect margins. In 2023, Cargojet rationalized its capital expenditure plans and managed costs effectively to maintain adjusted EBITDA margins. The company's cash flow focus generated a Free Cash Flow inflow of $37.9 million for the three-month period ended December 31, 2023, compared to an outflow of $99.6 million for the same period in 2022.



Investment Opportunity

Cargojet's strong financial performance, strategic focus, and commitment to operational excellence make it an attractive investment opportunity. The company's ability to maintain Adjusted EBITDA margins and generate significant cash flow, even in challenging economic conditions, demonstrates its resilience and potential for continued growth. Investors seeking exposure to the logistics and transportation sector should consider Cargojet as a strong candidate for their portfolios.

In conclusion, Cargojet's record revenue and strong performance in the fourth quarter and full year 2024 highlight the company's resilience and potential for continued growth. The company's diversified business model, strategic focus, and commitment to operational excellence make it an attractive investment opportunity for investors seeking exposure to the logistics and transportation sector.