Chorus Aviation V&VV (TSE:CHR)
TSX:CHR
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Chorus Aviation
(TSX:CHR)
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Rating:72Outperform
Price Target:
C$26.00
▲(15.61% Upside)
Action:ReiteratedDate:02/20/26
The score is driven by improved financial stability (profitability rebound and major deleveraging) and a shareholder-friendly, positive-guidance earnings call (higher dividend, buybacks, and multi-year cash generation outlook). The main constraints are weaker 2025 cash-flow conversion and limited revenue momentum, while technicals are supportive but approaching stretched levels.
Positive Factors
Sharply improved leverage
Material deleveraging materially strengthens financial flexibility and reduces vulnerability to cyclical airline downturns. Lower leverage supports sustained investment in fleet/maintenance, funds shareholder returns, and provides capacity for opportunistic M&A without immediate refinancing pressure.
Negative Factors
Weakened cash conversion
Marked decline in operating cash flow and weaker cash conversion erode the quality of reported earnings and reduce internally available capital. Over a multi-year horizon this raises dependence on asset sales or external funding to sustain buybacks/dividends and capital expenditures.
Read all positive and negative factors
Positive Factors
Negative Factors
Sharply improved leverage
Material deleveraging materially strengthens financial flexibility and reduces vulnerability to cyclical airline downturns. Lower leverage supports sustained investment in fleet/maintenance, funds shareholder returns, and provides capacity for opportunistic M&A without immediate refinancing pressure.
Read all positive factors
Chorus Aviation (CHR) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$526.61M
Dividend Yield0.76%
Average Volume (3M)63.92K
Price to Earnings (P/E)7.0
Beta (1Y)0.85
Revenue Growth-12.42%
EPS Growth69.23%
CountryCA
Employees4,345
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)0.57
Shares Outstanding23,415,380
10 Day Avg. Volume61,827
30 Day Avg. Volume63,922
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)1.09
Price to Sales (P/S)0.42
P/FCF Ratio19.86
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$31.00Price Target Upside37.84% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.95
Revenue Forecast (FY)C$1.28B
Chorus Aviation Business Overview & Revenue Model
Company Description
Chorus 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 ...
How the Company Makes Money
Chorus Aviation generates revenue through multiple key streams. The primary source of income comes from its regional airline operations, where it earns revenue through capacity purchase agreements (CPA) with Air Canada, which provides a stable and...
Chorus Aviation Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 08, 2026
Earnings Call Sentiment Positive
Overall the call conveyed a positive tone: material year-over-year improvement in adjusted earnings (134% increase), a meaningful dividend increase (38%), active share repurchases, strategic accretive M&A (Kadex) and multi-year cash generation guidance. These positives outweigh operational and timing headwinds such as a modest Q4 EBITDA decline (~7.6%), a small Voyageur revenue shortfall (~$5M), higher leverage versus the prior year, and some reliance on timing of asset and parts sales to smooth cash flows. Management highlighted strong liquidity, disciplined capital allocation, and a clear target leverage range (1–2x), which supports a constructive outlook despite near-term lumpiness.Positive Updates
Strong Full-Year Earnings Growth
Adjusted earnings available to common shareholders of $2.27 for 2025, up from $0.97 in 2024, representing a 134% increase year-over-year.
Negative Updates
Q4 Adjusted EBITDA Decline
Q4 adjusted EBITDA of $47.1 million versus $51.0 million in Q4 2024, a decrease of $3.9 million or about 7.6%, driven primarily by lower aircraft leasing revenue under the CPA.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Earnings Growth
Adjusted earnings available to common shareholders of $2.27 for 2025, up from $0.97 in 2024, representing a 134% increase year-over-year.
Read all positive updates
Company Guidance
Chorus’s guidance and capital plan for 2026 and the next four years includes FY2026 adjusted EBITDA of $170–$185 million and free cash flow of $100–$110 million; across the next four fiscal years it anticipates $500–$550 million of combined free cash flow and net proceeds from asset sales with a flexible capital allocation envelope of $170–$220 million. The company is increasing its dividend to $0.11 per share quarterly ($0.44 annually), up 38% from $0.08/qtr ($0.32/yr), committing to up to $100 million of share purchases over four years and a NCIB to buy ~2 million shares over the next year, while targeting mid‑teen returns. Key balance‑sheet metrics and near‑term items: year‑end liquidity of $169 million, year‑end leverage 1.7x (target range 1–2x net debt/adjusted EBITDA), scheduled amortizing term‑loan paydowns of $190 million over four years, expected realized proceeds of ~US$56 million (~CA$78 million) from sale of eight Dash 8‑400s (Feb–Jul), and an acquisition of Kadex for ~US$50 million ($43M funded at close) at ~7.5x EBIT, which management expects to be immediately accretive; FX assumptions cited were ~1.35 CAD/USD for the year moving to ~1.30 thereafter.Chorus Aviation Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
76
Positive
Cash Flow
54
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.32B | 1.40B | 1.40B | 1.60B | 1.02B |
| Gross Profit | 264.86M | 270.89M | 337.13M | 423.40M | 205.63M |
| EBITDA | 223.53M | 165.54M | 271.36M | 360.85M | 270.46M |
| Net Income | 78.74M | -158.50M | 101.35M | 48.89M | -20.48M |
Balance Sheet | |||||
| Total Assets | 1.31B | 1.61B | 3.85B | 4.06B | 3.18B |
| Cash, Cash Equivalents and Short-Term Investments | 28.66M | 222.22M | 88.83M | 100.03M | 123.57M |
| Total Debt | 374.16M | 516.38M | 1.76B | 2.03B | 1.91B |
| Total Liabilities | 802.61M | 1.10B | 2.57B | 2.79B | 2.49B |
| Stockholders Equity | 507.84M | 511.95M | 1.19B | 1.18B | 690.47M |
Cash Flow | |||||
| Free Cash Flow | 27.86M | 212.13M | 256.51M | 217.23M | 110.26M |
| Operating Cash Flow | 62.75M | 265.02M | 299.68M | 279.51M | 184.97M |
| Investing Cash Flow | -28.04M | 818.67M | 37.56M | -231.37M | -45.74M |
| Financing Cash Flow | -225.49M | -1.06B | -325.55M | -71.46M | -180.93M |
Chorus Aviation Technical Analysis
Positive
22.49
Price Trends
22.52
Negative
22.08
Positive
21.82
Positive
Market Momentum
-0.10
Positive
48.62
Neutral
53.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CHR, the sentiment is Positive. The current price of 22.49 is below the 20-day moving average (MA) of 22.49, below the 50-day MA of 22.52, and above the 200-day MA of 21.82, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 48.62 is Neutral, neither overbought nor oversold. The STOCH value of 53.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CHR.
Chorus Aviation Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | C$526.61M | 7.03 | 14.89% | 0.76% | -12.42% | 69.23% | |
72 Outperform | C$5.92B | 21.80 | 10.61% | 3.13% | 15.47% | 9.40% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | C$1.30B | 26.82 | 4.83% | 0.93% | 8.84% | 131.58% | |
57 Neutral | C$5.23B | 9.32 | 30.13% | ― | -0.09% | -109.21% | |
52 Neutral | C$1.25B | 16.01 | 10.73% | 1.67% | 7.71% | 3170.43% | |
49 Neutral | C$69.11M | -11.43 | 11.06% | ― | 16.18% | 87.47% |
* Industrials Sector Average
TSE:CHR
Chorus Aviation
22.49
4.43
24.54%
TSE:JET
Global Crossing Airlines
1.36
0.00
0.00%
TSE:AC
Air Canada
17.86
4.85
37.28%
TSE:EIF
Exchange Income
105.17
59.84
132.03%
TSE:MAL
Magellan Aerospace
22.83
11.57
102.70%
TSE:CJT
Cargojet
82.76
10.57
14.65%
Chorus Aviation Corporate Events
Business Operations and StrategyM&A Transactions
Chorus Aviation to Buy Kadex Aero Supply in $50 Million Parts Expansion
Positive
Feb 12, 2026
Chorus Aviation has agreed to acquire Kadex Aero Supply, a private independent distributor of aircraft parts, supplies and repair and overhaul services, for approximately $50 million in cash and contingent payments. Kadex, which generated about $6...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Chorus Aviation Boosts Dividend, Plans Major Buybacks After Strong 2025
Positive
Feb 12, 2026
Chorus Aviation reported a strong turnaround in 2025, with fourth-quarter net income from continuing operations of $16.7 million and full-year net income of $78.7 million, both showing substantial year-over-year improvements. Adjusted earnings ava...
Financial Disclosures
Chorus Aviation Sets February 13 Call for Q4 and Year-End 2025 Results
Neutral
Jan 13, 2026
Chorus Aviation Inc. has scheduled the release of its fourth quarter and full-year 2025 financial results for Friday, February 13, 2026, with a conference call and audio webcast that morning for analysts and media. President and CEO Colin Copp and...
Business Operations and Strategy
Jazz Aviation Secures New Labour Agreements with Maintenance Employees
Positive
Dec 12, 2025
Jazz Aviation LP announced the ratification of new five-year collective agreements with the Aircraft Mechanics Fraternal Association, covering 822 maintenance employees. These agreements include industry-competitive wage increases and enhancements...
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.