Cargojet Inc
TSX:CJT
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Cargojet Inc
TSX:CJT
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Cargojet Inc
Cargojet Inc., a titan soaring through the skies of the Canadian air freight industry, epitomizes the seamless marriage between modern logistics and aviation. Established in 2002, the company has crafted a niche as the preeminent provider of time-sensitive overnight air cargo services. Headquartered in Mississauga, Ontario, Cargojet’s strategic position allows it to optimize its extensive network—spanning over a dozen Canadian cities—catering to the needs of businesses with impeccable precision. Cargojet is the lifeblood of e-commerce and supply chain solutions within Canada, operating more than 1,300 flights per month on its fleet of Boeing 767 and 757 aircraft, transforming the country into a well-connected network of commerce.
The company's revenue model thrives on contracts and partnerships with major logistics firms, couriers, and other corporate clients, offering guarantees of timely and efficient delivery. Cargojet has effectively aligned its strategy with the burgeoning e-commerce industry, benefiting from its collaborations with major retailers and parcel delivery giants. This symbiotic relationship ensures almost boundless freight capacity during peak seasons, creating a robust cash flow and a dependable revenue stream. Through diversification and secure contractual agreements, Cargojet has not only established itself as a stalwart in overnight delivery but also positioned itself as a critical partner in the logistical frameworks that keep economies relentlessly ticking.
Cargojet Inc., a titan soaring through the skies of the Canadian air freight industry, epitomizes the seamless marriage between modern logistics and aviation. Established in 2002, the company has crafted a niche as the preeminent provider of time-sensitive overnight air cargo services. Headquartered in Mississauga, Ontario, Cargojet’s strategic position allows it to optimize its extensive network—spanning over a dozen Canadian cities—catering to the needs of businesses with impeccable precision. Cargojet is the lifeblood of e-commerce and supply chain solutions within Canada, operating more than 1,300 flights per month on its fleet of Boeing 767 and 757 aircraft, transforming the country into a well-connected network of commerce.
The company's revenue model thrives on contracts and partnerships with major logistics firms, couriers, and other corporate clients, offering guarantees of timely and efficient delivery. Cargojet has effectively aligned its strategy with the burgeoning e-commerce industry, benefiting from its collaborations with major retailers and parcel delivery giants. This symbiotic relationship ensures almost boundless freight capacity during peak seasons, creating a robust cash flow and a dependable revenue stream. Through diversification and secure contractual agreements, Cargojet has not only established itself as a stalwart in overnight delivery but also positioned itself as a critical partner in the logistical frameworks that keep economies relentlessly ticking.
Domestic Strength: Core domestic overnight business delivered strong growth, with revenue up 17% in Q4, driven primarily by e-commerce demand in Canada.
Challenging Global Conditions: Geopolitical uncertainty, tariffs, and a decline in China–U.S. e-commerce volumes weighed on transpacific and transatlantic revenues, but management expects Q4 2025 to be the trough for ACMI customers.
China Contract Suspended: The large China charter agreement was mutually suspended in early 2026, but management expects new and existing partner arrangements to more than replace the lost minimum revenue.
MD-11 Charter Windfall: Grounding of MD-11 cargo freighters globally created a short-term opportunity, increasing Cargojet's charter revenue and utilization, expected to last for several quarters.
Strong Margins: Adjusted EBITDA margin was 33.4% in Q4, supported by disciplined cost controls and robust domestic performance.
Disciplined CapEx: 2026 capital expenditures will be mainly maintenance-related, with a gross range of $190–210 million, and net spend expected to be lower after disposals and sale-leasebacks.
Leverage Target: Net debt to adjusted EBITDA ended slightly elevated at 2.8x, but management remains committed to moving below 2.5x over the long term.
Pilot Contract: Pilot contract negotiations are ongoing, with both parties aiming for a balanced agreement by June.
