Cargojet Inc. Reports Q2 2025 Earnings: Key Takeaways and Insights

Cargojet Inc. (CGJTF) reported Q2 2025 earnings, with Ajay Virmani, Pauline Dhillon, and Jamie Porteous on the call. The company's executives discussed the quarter's performance, forecasted revenues, and strategic plans. Certain statements made on the call were forward-looking, and non-GAAP measures such as adjusted EBITDA and adjusted earnings per share were referenced. The call also included a discussion of return on invested capital.

Cargojet Inc. (CGJTF) has reported its earnings for the second quarter and six months ended June 30, 2025. The company's executives, including Ajay Virmani, Pauline Dhillon, and Jamie Porteous, discussed the quarter's performance, forecasted revenues, and strategic plans during an earnings call held on August 7, 2025 [2].

Q2 2025 Earnings

For the second quarter, Cargojet reported sales of CAD 242.9 million, an increase of CAD 6.7 million compared to the same period last year. Revenue stood at CAD 238.2 million, up CAD 7.4 million from CAD 230.8 million in the previous year. Despite the revenue growth, the company reported a net loss of CAD 3.2 million, a significant improvement from the CAD 25 million loss in the same period last year. The basic loss per share from continuing operations was CAD 0.21, down from CAD 1.53 a year ago [1].

Six-Month Performance

For the six months ended June 30, 2025, Cargojet reported sales of CAD 498.3 million, an increase of CAD 25.6 million from the same period last year. Revenue was CAD 488.1 million, up CAD 26.1 million from CAD 462 million in the previous year. The company reported net income of CAD 44.8 million, a substantial improvement from the CAD 7.5 million net income in the same period last year. The basic earnings per share from continuing operations were CAD 2.89, up from CAD 0.46 a year ago [1].

Strategic Plans and Forward-Looking Statements

Executives emphasized the company's resilience and strategic growth plans. They highlighted the importance of identifying new trade routes and opportunities, particularly in the ACMI (Air Cargo Management) segment. The company entered into long-term contracts with DHL for China scheduled charters, demonstrating its proactive approach to emerging markets. The domestic network also showed resilience, posting 14% year-over-year growth in Q2 [2].

Operational Efficiency and Fleet Management

Cargojet is focusing on operational efficiency and cost savings. The company reported an adjusted EBITDA margin of 33.7% for the quarter, an improvement of 140 basis points from the first quarter of 2025. Management plans to streamline its fleet by acquiring four aircraft and selling two older 767-300 aircraft in Q3 2025. This will result in a net addition of one 767-300 aircraft, offsetting the net year-to-date free cash flow outflow of CAD 118.4 million by Q3 2025 [2].

Key Partnerships

The company announced the renewal of its air transportation services agreement with Amazon for four years, with an option to extend it to 2031. Additionally, DHL extended its strategic partnership with Cargojet until March 31, 2033, with further options until 2037. These long-term agreements underscore Cargojet's strong relationships with global logistics leaders [2].

References

[1] https://www.marketscreener.com/news/cargojet-inc-reports-earnings-results-for-the-second-quarter-and-six-months-ended-june-30-2025-ce7c5ededf8dfe20

[2] https://seekingalpha.com/article/4810840-cargojet-inc-cgjtf-q2-2025-earnings-call-transcript