Cargojet Inc (TSE:CJT)
TSX:CJT
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Cargojet
(TSX:CJT)
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Rating:55Neutral
Price Target:
C$88.00
▲(5.35% Upside)
Action:Reiterated
Date:06/03/26
The score is held back primarily by weaker financial quality: sharply lower margins/returns and negative free cash flow alongside elevated leverage. Technicals are moderately supportive with positive momentum, but a high P/E and only modest dividend yield weigh on valuation.
Positive Factors
Contracted, recurring revenue
Cargojet’s business model centers on contracted scheduled freight and recurring relationships with integrators, e-commerce and forwarders. That creates durable, predictable demand for overnight capacity, supporting stable revenue streams and network utilization over multiple quarters.
Negative Factors
Compressed profitability
Margins have materially compressed versus prior years, reducing returns on capital and weakening the business’s ability to self-fund growth. Sustained lower profitability would pressure ROE and limit reinvestment capacity unless pricing or cost structure improves.
Read all positive and negative factors
Positive Factors
Negative Factors
Contracted, recurring revenue
Cargojet’s business model centers on contracted scheduled freight and recurring relationships with integrators, e-commerce and forwarders. That creates durable, predictable demand for overnight capacity, supporting stable revenue streams and network utilization over multiple quarters.
Read all positive factors
Cargojet (CJT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.21B
Dividend Yield1.67%
Average Volume (3M)186.50K
Price to Earnings (P/E)33.8
Beta (1Y)1.70
Revenue Growth-2.16%
EPS Growth-69.46%
CountryCA
Employees1,935
SectorIndustrials
Sector Strength72
IndustryIntegrated Freight & Logistics
Share Statistics
EPS (TTM)2.41
Shares Outstanding14,921,249
10 Day Avg. Volume203,078
30 Day Avg. Volume186,501
Financial Highlights & Ratios
PEG Ratio-0.74
Price to Book (P/B)1.73
Price to Sales (P/S)1.29
P/FCF Ratio-12.65
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$116.57Price Target Upside39.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)3.48
Revenue Forecast (FY)C$1.06B
Cargojet Business Overview & Revenue Model
Company Description
Cargojet Inc. specializes in express overnight air freight delivery, primarily serving Canada. The company's business activities include managing a domestic air cargo network that connects fourteen cities across North America. It also leases dedic...
How the Company Makes Money
Cargojet makes money primarily by selling air cargo transportation capacity and related services. Its core revenue stream is contracted and scheduled air freight service, where customers (commonly integrators/couriers, e-commerce logistics network...
Cargojet Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Positive
The call presents a cautiously positive tone: operational execution and disciplined cost/capital management delivered strong profitability (Q4 adjusted EBITDA $95M, 33.4% margin) and exceptional on-time performance (99%), with robust domestic overnight growth (~17% Q4, ~14% full year) and fleet/CapEx rationalization. Offsetting risks include meaningful declines in ACMI and charter revenues, a mutual suspension of the China contract driven by deteriorating China trade volumes (China-to-U.S. e-commerce -28% for 2025), elevated near-term leverage (2.8x pro forma) and lingering macro/tariff/geopolitical uncertainty that reduces visibility. On balance, the company demonstrated resilience and disciplined execution while acknowledging several material headwinds that could limit near-term upside.Positive Updates
Strong Adjusted EBITDA and Margins
Adjusted EBITDA for Q4 was $95 million and adjusted EBITDA margin was 33.4%, maintained in the low-to-mid 30% range despite challenging conditions and a 2.9% year-over-year decline in total revenues.
Negative Updates
ACMI Revenue Decline
ACMI revenue in Q4 was $64.6 million, down $18.9 million year-over-year (≈22.6% decline) driven by disrupted transatlantic and transpacific routes and shorter stage lengths reducing block hours.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Adjusted EBITDA and Margins
Adjusted EBITDA for Q4 was $95 million and adjusted EBITDA margin was 33.4%, maintained in the low-to-mid 30% range despite challenging conditions and a 2.9% year-over-year decline in total revenues.
Read all positive updates
Company Guidance
Management guided to a disciplined 2026 with gross maintenance CapEx expected to be $190–$210 million (Aaron noted net CapEx after expected proceeds and opportunistic sale‑leasebacks could be nearer $160–$170 million) and growth CapEx to be tightly controlled and tied to long‑term committed revenue; Q4 CapEx was $45.6M (maintenance $37.5M, growth $8.1M) versus Q4 2024’s $136.9M (maintenance $92.7M, growth $44.2M). They reiterated a focus on maintaining industry‑leading service (99% on‑time in peak) and cost discipline after delivering Q4 adjusted EBITDA of $95M (33.4% margin) on revenues down 2.9% YoY, with domestic overnight revenue of $120.2M (up $17.4M, almost 17% QoQ and ~14% for the year), ACMI revenue $64.6M (down $18.9M YoY), and charter revenue $58.2M (vs. $64.4M). Fleet and balance‑sheet targets include an operational fleet of 41 aircraft, standardization to GE‑powered 767s, pro‑forma net leverage of 2.8x with a long‑term target below 2.5x, continued dividend growth (10% increase) and opportunistic use of the NCIB.Cargojet Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 997.50M | 992.70M | 1.00B | 877.50M | 979.90M | 757.80M |
| Gross Profit | 185.20M | 197.10M | 225.80M | 138.10M | 247.50M | 232.40M |
| EBITDA | 300.80M | 331.50M | 333.90M | 265.70M | 373.00M | 328.80M |
| Net Income | 36.30M | 80.20M | 108.40M | 37.30M | 190.60M | 167.40M |
Balance Sheet | ||||||
| Total Assets | 2.06B | 2.13B | 1.93B | 2.04B | 1.99B | 1.49B |
| Cash, Cash Equivalents and Short-Term Investments | 1.60M | 6.70M | 1.50M | 31.80M | 6.10M | 94.70M |
| Total Debt | 916.80M | 1.15B | 755.10M | 799.20M | 707.00M | 398.60M |
| Total Liabilities | 1.32B | 1.39B | 1.19B | 1.25B | 1.15B | 813.40M |
| Stockholders Equity | 741.90M | 742.40M | 737.70M | 784.50M | 831.50M | 676.40M |
Cash Flow | ||||||
| Free Cash Flow | -29.10M | -101.50M | 78.60M | -73.90M | -328.70M | -32.60M |
| Operating Cash Flow | 239.70M | 234.60M | 328.60M | 192.80M | 282.50M | 245.00M |
| Investing Cash Flow | -221.40M | -349.60M | -142.70M | -127.50M | -615.10M | -280.40M |
| Financing Cash Flow | -24.10M | 120.20M | -216.20M | -39.60M | 244.00M | 126.40M |
Cargojet Technical Analysis
Negative
83.53
Price Trends
81.74
Negative
84.75
Negative
84.39
Negative
Market Momentum
-0.54
Positive
48.13
Neutral
23.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CJT, the sentiment is Negative. The current price of 83.53 is above the 20-day moving average (MA) of 81.95, above the 50-day MA of 81.74, and below the 200-day MA of 84.39, indicating a bearish trend. The MACD of -0.54 indicates Positive momentum. The RSI at 48.13 is Neutral, neither overbought nor oversold. The STOCH value of 23.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CJT.
Cargojet Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | C$103.73B | 22.50 | 21.93% | 2.62% | 0.47% | 6.34% | |
64 Neutral | C$2.05B | 20.35 | 8.72% | 5.21% | 7.92% | -14.19% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | C$6.91B | 9.38 | 34.23% | ― | 3.31% | -44.10% | |
58 Neutral | C$16.84B | 36.72 | 11.18% | 1.75% | -7.84% | -21.07% | |
55 Neutral | C$1.21B | 33.78 | 4.92% | 1.67% | -2.16% | -69.46% | |
43 Neutral | C$420.99M | -13.65 | -42.43% | ― | 78.10% | 8.72% |
* Industrials Sector Average
TSE:CJT
Cargojet
81.41
-11.81
-12.66%
TSE:CNR
Canadian National Railway
171.00
32.60
23.55%
TSE:TFII
TFI International
204.90
84.37
70.00%
TSE:AC
Air Canada
24.67
3.60
17.09%
TSE:MTL
Mullen Group
21.37
7.86
58.12%
TSE:FLT
Volatus Aerospace
0.58
0.29
100.00%
Cargojet Corporate Events
Financial Disclosures
Cargojet schedules first-quarter 2026 results and investor call
Neutral
Apr 6, 2026
Cargojet Inc. said it will release first-quarter 2026 financial results on May 4 after markets close, followed by a management-hosted conference call the next morning to review the numbers. The planned disclosure underscores the company’s re...
Business Operations and StrategyM&A Transactions
Cargojet Sheds 21 Air Stake to Refocus on Core Air Cargo Operations
Neutral
Apr 2, 2026
Cargojet Inc. has agreed to divest its minority investment in Miami-based air cargo operator 21 Air LLC, a stake it acquired in 2021 to gain collaboration and insights into the U.S. cargo market. The move is intended to sharpen Cargojet’s fo...
Business Operations and StrategyShareholder Meetings
Cargojet Shareholders Back All Resolutions at Annual Meeting
Positive
Apr 1, 2026
Cargojet Inc. reported that shareholders approved all items of business at its annual meeting held in Mississauga, including the election of all nominated directors with strong majorities. The solid support for the board slate signals continuity i...
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.