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Transat AT V & VV ( (TSE:TRZ) ) just unveiled an update.
Transat A.T. Inc. reported record adjusted EBITDA of $271 million for fiscal 2025, a 33% increase year over year, on revenues of $3.4 billion, driven by higher yields, modest traffic growth, productivity gains and lower fuel costs. The company swung to a net income of $241.9 million for the year from a net loss in 2024, while still generating negative free cash flow as it continues to invest in its operations. Fourth-quarter performance was softer, with revenues down 2.2% to $771.6 million and adjusted EBITDA nearly halving to $71.4 million, largely due to reduced compensation tied to Pratt & Whitney engine issues, although underlying revenue grew when excluding this effect. Management highlighted a major milestone in restructuring its government LEEFF debt, cutting the outstanding balance to $350 million and extending maturities to 2035, which is expected to substantially lower interest expenses and free capacity for growth and optimization initiatives. With all key collective agreements renewed through at least 2027 and a tentative deal with its pilots, Transat expects to accelerate growth in 2026 through targeted network expansion in Africa, Europe and South America, increased capacity as fewer aircraft remain grounded, and the full realization of its Elevation Program, which is projected to add $100 million in adjusted EBITDA by mid-2026, underpinning its strategy to create long-term shareholder value.
The most recent analyst rating on (TSE:TRZ) stock is a Hold with a C$3.00 price target. To see the full list of analyst forecasts on Transat AT V & VV stock, see the TSE:TRZ Stock Forecast page.
Spark’s Take on TSE:TRZ Stock
According to Spark, TipRanks’ AI Analyst, TSE:TRZ is a Neutral.
Transat AT V & VV’s overall stock score reflects a mixed outlook. The most significant factors are the financial performance challenges, particularly the negative equity and profitability issues, which weigh heavily on the score. Technical analysis shows some positive momentum, but valuation concerns and competitive pressures from the earnings call temper the outlook. The company’s strategic initiatives and debt restructuring offer potential upside if successfully executed.
To see Spark’s full report on TSE:TRZ stock, click here.
More about Transat AT V & VV
Transat A.T. Inc. is a Montreal-based leisure travel company operating primarily in the tourism and air transport industry, offering vacation packages and airline services focused on popular leisure destinations across Europe, Africa, South America and other sun markets. The company targets price-sensitive holiday travelers and has been optimizing its route network and cost structure through its Elevation Program to strengthen its competitive position in the global leisure travel sector.
Average Trading Volume: 77,907
Technical Sentiment Signal: Buy
Current Market Cap: C$101.4M
See more insights into TRZ stock on TipRanks’ Stock Analysis page.