Canada's Chorus Aviation Q4 adjusted profit misses estimates as leasing revenue drops

Overview

• Canada aviation firm's Q4 adjusted net income and EBITDA missed analyst expectations

• Net income from continuing operations rose significantly due to foreign exchange gains

• Company plans up to C$100 mln share buybacks and acquires Kadex Aero Supply

Outlook

• Chorus projects 2026 Adjusted EBITDA between C$170 mln and C$185 mln

• Company expects Free Cash Flow between C$100 mln and C$110 mln in 2026

• Chorus plans C$36 mln to C$46 mln Free Cash Flow after loan repayments

Result Drivers

• FOREIGN EXCHANGE GAINS - Net income from continuing operations increased due to a positive change in unrealized foreign exchange gains and the absence of previous year's costs

• LOWER LEASING REVENUE - Decrease in Adjusted EBITDA attributed to lower aircraft leasing revenue and decreased capitalization of maintenance overhauls

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the airlines peer group is "buy"

• Wall Street's median 12-month price target for Chorus Aviation Inc is C$31.00, about 47.1% above its February 11 closing price of C$21.08

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nCNWqGpkza

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