tiprankstipranks
Trending News
More News >
Chorus Aviation V&VV (TSE:CHR)
TSX:CHR
Advertisement

Chorus Aviation (CHR) AI Stock Analysis

Compare
423 Followers

Top Page

TSE:CHR

Chorus Aviation

(TSX:CHR)

Rating:50Neutral
Price Target:
C$20.50
▲(0.84% Upside)
Chorus Aviation's overall stock score reflects a combination of mixed financial performance, bearish technical indicators, and a challenging valuation. While there are improvements in operational efficiency and debt management, the stock is currently under technical pressure with a negative P/E ratio. The high dividend yield offers some appeal, but caution is advised due to the negative earnings outlook.
Positive Factors
Earnings and Cash Flows
The company's capacity purchase agreement with Air Canada and the growing Voyageur business provide visibility into earnings and cash flows.
Revenue Streams
CHR going forward benefits from two largely contracted, predictable and stable revenue streams.
Negative Factors
Financial Performance
Q1/25 results were generally better than expectations, and mark a new era for the company.
Free Cash Flow
Free cash flow usage of $28.9m came in well below the positive $8.1m forecast, driven by higher-than-anticipated working capital draw.

Chorus Aviation (CHR) vs. iShares MSCI Canada ETF (EWC)

Chorus Aviation Business Overview & Revenue Model

Company DescriptionChorus Aviation Inc., through its subsidiaries, provides various aviation support services in the United States and Canada. The company operates through two segments, Regional Aviation Services and Regional Aircraft Leasing. The Regional Aviation Services segment includes all three sectors of the regional aviation, such as contract flying, including ACMI and charter operations; aircraft leasing; and maintenance, repair, and overhaul, as well as part sales and technical services. The Regional Aircraft Leasing segment provides aircraft leasing to third-party air operators. As of December 31, 2021, this segment's portfolio of leased aircraft consisted of 62 aircraft of which 56 aircraft were on lease to airline customers, such as 23 Dash 8-400s, 18 ATR72-600s, four CRJ1000s, four E190s, two E195s and five A220-300s. The company was formerly known as Jazz Air Income Fund and changed its name to Chorus Aviation Inc. in January 2011. Chorus Aviation Inc. was incorporated in 2010 and is based in Dartmouth, Canada.
How the Company Makes MoneyChorus Aviation generates revenue through multiple streams. A significant portion of its income comes from long-term leasing agreements with regional airlines worldwide, where it leases aircraft from its diverse fleet to operators who require flexible and efficient regional aircraft solutions. Additionally, Chorus earns money through its contract flying operations, notably with Air Canada, under the 'Capacity Purchase Agreement' where it provides regional flight services. The company also derives revenue from its aircraft maintenance, repair, and overhaul (MRO) services, offering these services to third-party airlines and ensuring operational efficiency and reliability of aircraft. These revenue streams are supported by strategic partnerships and long-term contracts that provide stable and recurring income.

Chorus Aviation Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call was largely positive, with strong financial performance, strategic acquisitions, and growth in revenue and free cash flow. However, there were some challenges due to geopolitical pressures affecting overseas operations and exchange rate impacts.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Chorus reported adjusted earnings per share of $0.66, an increase of $0.59 per share over Q2 2024. Adjusted EBITDA was $51.3 million, an increase of $0.8 million over Q2 2024, and free cash flow increased by $6.4 million to $34.6 million.
Strategic Acquisition of Elisen & Associates Inc.
Chorus announced the acquisition of Elisen & Associates Inc., a leading provider of aerospace engineering and certification services, to enhance its specialized MRO capabilities.
Voyageur's Record Revenue Year
Voyageur is on track for a record year with expected total revenue of approximately $150 million, driven by growth in part sales, specialty MRO, and defense business.
Initiation of Quarterly Dividend
Chorus announced a quarterly dividend of $0.08 per common share, with plans to distribute approximately 25% of free cash flow after debt repayments as dividends.
Improved Market Prices for Dash 8-400
Chorus anticipates average net proceeds of USD 6 million to USD 7.5 million each for Dash 8-400 aircraft sales, reflecting improved market prices.
Negative Updates
Geopolitical Pressures Affecting Overseas Flying
A shift in business mix due to geopolitical pressures and funding constraints from the World Food Programme and United Nations reducing contracted flying operations.
Impact of U.S. Dollar Exchange Rate
The forecasted U.S. to Canadian dollar exchange rate was updated to 1.35 from 1.40, slightly impacting the revenue line.
Company Guidance
During the Chorus Second Quarter 2025 Financial Results Conference Call, the company provided guidance for its fiscal outlook, emphasizing its strong performance across key financial metrics. Chorus declared a cash dividend of $0.08 per share, with future dividends targeting 25% of free cash flow after debt repayments. Year-to-date, the company has repurchased $27.2 million in shares and plans to redeem Series B debentures worth $28.7 million by September 30. Chorus anticipates completing the strategic acquisition of Elisen & Associates Inc. by year-end, enhancing its aerospace engineering capabilities. The company also expects Voyageur's 2025 total revenue to reach approximately $150 million, driven by a shift towards higher-margin contracts. Financial results indicated an increase in adjusted earnings per share to $0.66, adjusted EBITDA of $51.3 million, and free cash flow of $34.6 million. The leverage ratio stood at 1.5, with liquidity of $246.5 million. Additionally, Chorus is negotiating sales agreements for its Dash 8-400 aircraft, with expected proceeds between USD 6 million and USD 7.5 million each, reflecting improved market conditions.

Chorus Aviation Financial Statement Overview

Summary
Chorus Aviation shows resilience in cash flow management and leverage optimization despite challenges in profitability. The company faces pressure on revenue and margins, but maintains a strong cash position and reduced leverage.
Income Statement
45
Neutral
Chorus Aviation's revenue contracted slightly in the TTM period compared to the previous year. The gross profit margin reduced to 16.02% in TTM from 19.28% the previous year, indicating increased pressure on costs or pricing. The net loss widened in TTM, leading to a negative net profit margin of -10.64%, compared to the previous year's -11.28%. While EBIT margin showed resilience at 6.77% for TTM, EBITDA margin improved to 12.84%. The visible trend is a struggle to maintain profitability amidst fluctuating revenue.
Balance Sheet
55
Neutral
The balance sheet reflects a decrease in total assets and liabilities over time. The debt-to-equity ratio stands at 0.81 in TTM, an improvement from 1.01 the previous year, suggesting a reduction in leverage. However, the equity ratio decreased to 36.43% from 31.85%, indicating relative stability in equity financing. Overall, the financial stability appears moderate with a cautious approach to debt management.
Cash Flow
65
Positive
The company's operating cash flow to net income ratio is strong at -1.01, reflecting robust cash generation capabilities despite net losses. The free cash flow was positive at $108.5 million, although it decreased compared to the previous year's $212.1 million. The free cash flow growth rate is negative due to this decline. Cash flow management seems effective despite the challenges in profitability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.37B1.40B1.40B1.60B1.02B948.72M
Gross Profit264.48M270.89M337.13M423.40M205.63M230.12M
EBITDA196.87M165.54M271.36M381.35M270.46M363.12M
Net Income63.52M-158.50M101.35M48.89M-20.48M41.49M
Balance Sheet
Total Assets1.35B1.61B3.85B4.06B3.18B3.34B
Cash, Cash Equivalents and Short-Term Investments56.09M222.22M88.83M100.03M123.57M165.72M
Total Debt384.28M516.38M1.76B2.03B1.91B2.19B
Total Liabilities816.19M1.10B2.57B2.79B2.49B2.70B
Stockholders Equity537.23M511.95M1.19B1.18B690.47M641.34M
Cash Flow
Free Cash Flow48.69M212.13M256.51M217.23M110.26M-249.50M
Operating Cash Flow84.56M265.02M299.68M279.51M184.97M156.64M
Investing Cash Flow719.51M818.67M37.56M-231.37M-45.74M-407.59M
Financing Cash Flow-949.54M-1.06B-325.55M-71.46M-180.93M334.56M

Chorus Aviation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price20.33
Price Trends
50DMA
21.52
Negative
100DMA
20.68
Negative
200DMA
20.66
Negative
Market Momentum
MACD
-0.33
Negative
RSI
40.68
Neutral
STOCH
37.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CHR, the sentiment is Negative. The current price of 20.33 is below the 20-day moving average (MA) of 20.41, below the 50-day MA of 21.52, and below the 200-day MA of 20.66, indicating a bearish trend. The MACD of -0.33 indicates Negative momentum. The RSI at 40.68 is Neutral, neither overbought nor oversold. The STOCH value of 37.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CHR.

Chorus Aviation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$10.73B15.747.60%2.01%2.75%-15.09%
50
Neutral
C$517.59M2.81%0.39%-16.92%77.04%
$558.29M-38.04%
$11.23B24.58
$4.08B4.51101.32%
74
Outperform
C$3.66B26.499.71%3.81%6.87%8.42%
72
Outperform
C$587.56M17.1014.80%3.73%-5.62%88.69%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:CHR
Chorus Aviation
20.33
1.85
10.01%
BLDP
Ballard Power Systems
1.99
0.30
17.75%
BDRBF
Bombardier
111.77
50.14
81.36%
ACDVF
Air Canada
13.86
2.74
24.64%
TSE:EIF
Exchange Income
71.35
24.88
53.54%
TSE:DXT
Dexterra Group
9.39
3.16
50.72%

Chorus Aviation Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Chorus Aviation to Redeem Remaining Convertible Debentures
Neutral
Aug 5, 2025

Chorus Aviation Inc. has announced its intention to redeem all remaining 6.00% convertible senior unsecured debentures due June 30, 2026, on September 30, 2025. This move involves paying holders approximately $1,015 for each $1,000 principal amount, including accrued interest, and marks a strategic financial decision by Chorus to utilize cash on hand for this redemption. The redemption could potentially impact the company’s financial structure and market positioning, as it aims to streamline its financial obligations.

The most recent analyst rating on (TSE:CHR) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on Chorus Aviation stock, see the TSE:CHR Stock Forecast page.

M&A TransactionsStock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Chorus Aviation Reports Strong Q2 2025 Results and Strategic Growth Initiatives
Positive
Aug 5, 2025

Chorus Aviation Inc. reported a significant turnaround in its financial performance for the second quarter of 2025, with a net income of $32.4 million compared to a net loss of $180.6 million in the same period last year. The improvement is attributed to the sale of the RAL business, growth at Voyageur, and reduced corporate costs. The company also announced strategic moves such as acquiring Elisen & Associates Inc. to support future growth, delivering specialized aircraft for firefighting, and initiating a quarterly dividend to enhance shareholder value. Additionally, Chorus completed share buybacks and plans to redeem outstanding debentures to strengthen its balance sheet.

The most recent analyst rating on (TSE:CHR) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on Chorus Aviation stock, see the TSE:CHR Stock Forecast page.

Other
Jazz Aviation Receives 5-Star DEI Employer Award
Positive
Aug 5, 2025

Jazz Aviation LP has been awarded the 5-Star Diversity, Equity and Inclusion Employer recognition for 2025 by Canadian HR Reporter. This accolade underscores Jazz’s commitment to fostering an inclusive workplace culture, enhancing its industry positioning and reinforcing its reputation as a leader in diversity and inclusion initiatives. The award is based on a comprehensive evaluation of Jazz’s DEI practices and employee feedback, highlighting the company’s dedication to creating a supportive environment where employees can thrive.

The most recent analyst rating on (TSE:CHR) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on Chorus Aviation stock, see the TSE:CHR Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Chorus Aviation to Acquire Elisen & Associates, Expanding Aerospace Capabilities
Neutral
Jul 21, 2025

Chorus Aviation Inc. announced its agreement to acquire Elisen & Associates Inc., a Montreal-based aerospace engineering firm known for its work on complex aircraft modifications and sustainable aviation projects. This acquisition is expected to enhance Chorus’s defense and specialized MRO capabilities by leveraging Elisen’s expertise and industry relationships, although it is not anticipated to significantly impact Chorus’s financial metrics.

The most recent analyst rating on (TSE:CHR) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on Chorus Aviation stock, see the TSE:CHR Stock Forecast page.

Financial Disclosures
Chorus Aviation to Announce Q2 2025 Financial Results
Neutral
Jul 4, 2025

Chorus Aviation Inc. announced that it will present its second quarter 2025 financial results on August 6, 2025. The presentation will be led by the company’s President and CEO, Colin Copp, along with CFO Gary Osborne, and will be accessible to analysts and media. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction for the upcoming quarters.

The most recent analyst rating on (TSE:CHR) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on Chorus Aviation stock, see the TSE:CHR Stock Forecast page.

Stock BuybackDividendsBusiness Operations and Strategy
Chorus Aviation Initiates Quarterly Dividend to Enhance Shareholder Value
Positive
Jun 25, 2025

Chorus Aviation Inc. has announced the initiation of a quarterly cash dividend of $0.08 per share, starting with its 2025 third-quarter earnings release. This move is part of Chorus’ strategy to enhance shareholder value following the sale of its Regional Aircraft Leasing business, alongside debt reduction and share buybacks. The company aims to distribute approximately 25% of its free cash flow as dividends while maintaining a leverage ratio within its target range and pursuing growth opportunities, reflecting its commitment to delivering shareholder value and investing in future growth.

The most recent analyst rating on (TSE:CHR) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on Chorus Aviation stock, see the TSE:CHR Stock Forecast page.

Stock Buyback
Chorus Aviation Resumes Share Repurchase with New Plan
Neutral
May 27, 2025

Chorus Aviation Inc. has initiated an automatic share purchase plan (ASPP) to facilitate the repurchase of its Class A and Class B shares under its normal course issuer bid (NCIB), which had been suspended during a substantial issuer bid. The ASPP allows Chorus to buy shares during trading blackout periods, with the plan reviewed by the Toronto Stock Exchange. This move is expected to optimize the company’s capital structure and potentially enhance shareholder value, although there is no assurance on the number of shares to be acquired.

The most recent analyst rating on (TSE:CHR) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on Chorus Aviation stock, see the TSE:CHR Stock Forecast page.

Stock Buyback
Chorus Aviation Completes Substantial Issuer Bid and Plans to Resume Share Purchases
Neutral
May 22, 2025

Chorus Aviation Inc. announced the final results of its substantial issuer bid, purchasing 471,319 shares at $21.00 per share for approximately $9.9 million. This move represents about 1.78% of its outstanding shares, and the company plans to resume its normal course issuer bid, continuing share purchases opportunistically until November 2025.

The most recent analyst rating on (TSE:CHR) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on Chorus Aviation stock, see the TSE:CHR Stock Forecast page.

Stock Buyback
Chorus Aviation Announces Preliminary Results of Share Buyback
Neutral
May 21, 2025

Chorus Aviation Inc. announced the preliminary results of its substantial issuer bid, aiming to purchase and cancel up to $25 million of its shares. The company successfully tendered 471,319 shares at $21.00 each, representing approximately 1.78% of its outstanding shares. Following this transaction, Chorus will have 25,992,518 shares remaining. The issuer bid was less than the maximum allowed, so all validly tendered shares will be purchased without proration. The company plans to resume its normal course issuer bid, purchasing shares opportunistically until November 2025.

The most recent analyst rating on (TSE:CHR) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on Chorus Aviation stock, see the TSE:CHR Stock Forecast page.

Stock BuybackRegulatory Filings and Compliance
Chorus Aviation Secures Regulatory Approval for Potential Extension of Share Buyback Offer
Neutral
May 15, 2025

Chorus Aviation Inc. announced that it has received exemptive relief from the Nova Scotia Securities Commission, allowing it to extend its substantial issuer bid if undersubscribed, without needing to first purchase shares already tendered. This move is part of Chorus’s offer to buy back up to $25 million worth of its Class A and Class B shares through a modified Dutch auction. The decision to extend the offer has not yet been made, but it could impact the company’s financial strategy and shareholder value.

The most recent analyst rating on (TSE:CHR) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on Chorus Aviation stock, see the TSE:CHR Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Chorus Aviation Announces Board of Directors Election Results
Positive
May 7, 2025

Chorus Aviation Inc. announced the election results for its Board of Directors during its virtual annual meeting of shareholders on May 7, 2025. The meeting saw 11,754,727 shares represented, accounting for 43.92% of the company’s voting shares, with all business items receiving approval. The election results highlight the continued support for the company’s leadership, which could positively impact its operational strategies and stakeholder confidence.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025