Transat AT V & VV (TSE:TRZ)
TSX:TRZ
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Transat AT V & VV
(TSX:TRZ)
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Rating:59Neutral
Price Target:
C$3.00
▲(2.39% Upside)
Action:ReiteratedDate:04/09/26
The score is primarily driven by a strong operating and cash-flow recovery, but is held back by significant balance-sheet risk (negative equity and high debt). Technicals are moderately supportive with the stock trading above major moving averages, while valuation is penalized by a negative P/E and no provided dividend yield.
Positive Factors
Strengthened cash generation
Transat's shift to materially positive operating and free cash flow represents a durable improvement in internal funding. Sustained FCF enables reinvestment in products, gradual deleveraging, and reduced reliance on external financing, improving operating flexibility over the medium term.
Negative Factors
Deeply negative shareholders' equity
Negative equity signals a weakened capital base that constrains strategic flexibility. It elevates insolvency and covenant risks, limits capacity to absorb shocks or fund growth organically, and can prolong reliance on costly external financing until equity is rebuilt.
Read all positive and negative factors
Positive Factors
Negative Factors
Strengthened cash generation
Transat's shift to materially positive operating and free cash flow represents a durable improvement in internal funding. Sustained FCF enables reinvestment in products, gradual deleveraging, and reduced reliance on external financing, improving operating flexibility over the medium term.
Read all positive factors
Transat AT V & VV (TRZ) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$109.45M
Dividend YieldN/A
Average Volume (3M)92.05K
Price to Earnings (P/E)―
Beta (1Y)0.87
Revenue Growth3.36%
EPS GrowthN/A
CountryCA
Employees5,000
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Services
Share Statistics
EPS (TTM)8.35
Shares Outstanding40,689,545
10 Day Avg. Volume41,242
30 Day Avg. Volume92,051
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-0.13
Price to Sales (P/S)0.02
P/FCF Ratio1.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$2.33Price Target Upside-20.36% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)-1.58
Revenue Forecast (FY)C$3.57B
Transat AT V & VV Business Overview & Revenue Model
Company Description
Transat A.T. Inc. operates as an integrated international tourism company in the Americas and Europe. The company offers vacation packages, hotel stays, and air travel services under the Transat and Air Transat brands to approximately 60 destinati...
How the Company Makes Money
null...
Transat AT V & VV Earnings Call Summary
Earnings Call Date:Dec 18, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 11, 2026
Earnings Call Sentiment Neutral
Transat showed strong operational improvements and strategic expansions, particularly in network growth and financial restructuring. However, revenue declines and operational challenges, such as grounded aircraft and increased expenses, indicate areas of concern.Positive Updates
Record Adjusted EBITDA
Adjusted EBITDA improved by 33% year-over-year to an all-time record of $271 million, supported by efficient cost management and initial benefits from the Elevation optimization program.
Negative Updates
Revenue Decline
Total revenues declined 2.2% year-over-year to $772 million due to timing of Pratt & Whitney compensation.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Adjusted EBITDA
Adjusted EBITDA improved by 33% year-over-year to an all-time record of $271 million, supported by efficient cost management and initial benefits from the Elevation optimization program.
Read all positive updates
Company Guidance
During the fourth quarter conference call for fiscal 2025, Transat provided several key metrics and guidance for the upcoming year. The company reported a 3.5% increase in annual revenues to $3.4 billion and a record-high adjusted EBITDA of $271 million, up 33% year-over-year. Passenger revenues increased by 1.5%, driven by a higher yield, although total revenues for the fourth quarter declined by 2.2% to $772 million due to timing differences in Pratt & Whitney compensation. Capacity, measured in available seat miles, decreased by 1.8% for the quarter but increased by 0.8% for the year. The load factor remained stable at 87% for the quarter and 84.6% for the year, while yield improved by 2.6% in the quarter and 2.3% for the year. Looking forward to fiscal 2026, Transat anticipates a capacity increase of 5% to 7% for the winter season and 6% to 8% for the entire year, supported by network optimization and fewer grounded aircraft. The company also aims to continue its Elevation optimization program, targeting a $100 million improvement in EBITDA by mid-2026, with a 60-40 split between cost savings and revenue enhancements.Transat AT V & VV Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
28
Negative
Cash Flow
63
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.44B | 3.40B | 3.28B | 3.05B | 1.64B | 124.82M |
| Gross Profit | 425.07M | 390.55M | 347.67M | 415.68M | -92.26M | -138.79M |
| EBITDA | 696.96M | 633.27M | 251.42M | 291.73M | -193.70M | -153.61M |
| Net Income | 334.95M | 241.92M | -114.03M | -25.29M | -445.32M | -389.44M |
Balance Sheet | ||||||
| Total Assets | 2.87B | 2.57B | 2.75B | 2.57B | 2.27B | 1.90B |
| Cash, Cash Equivalents and Short-Term Investments | 914.74M | 594.92M | 260.34M | 435.65M | 322.54M | 433.19M |
| Total Debt | 1.46B | 1.56B | 2.15B | 1.89B | 1.75B | 1.42B |
| Total Liabilities | 3.54B | 3.22B | 3.64B | 3.35B | 3.02B | 2.21B |
| Stockholders Equity | -674.33M | -645.05M | -889.08M | -779.04M | -750.18M | -315.11M |
Cash Flow | ||||||
| Free Cash Flow | 196.16M | 59.12M | -43.90M | 264.18M | -210.38M | -524.04M |
| Operating Cash Flow | 284.79M | 156.97M | 94.67M | 321.75M | -177.85M | -518.44M |
| Investing Cash Flow | -31.59M | -10.21M | -31.45M | -7.93M | -33.78M | 4.54M |
| Financing Cash Flow | -256.13M | -243.19M | -240.29M | -203.02M | 99.69M | 522.07M |
Transat AT V & VV Technical Analysis
Positive
2.93
Price Trends
2.54
Positive
2.57
Positive
2.57
Positive
Market Momentum
0.12
Negative
73.52
Negative
72.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TRZ, the sentiment is Positive. The current price of 2.93 is above the 20-day moving average (MA) of 2.58, above the 50-day MA of 2.54, and above the 200-day MA of 2.57, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 73.52 is Negative, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TRZ.
Transat AT V & VV Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$277.52M | 10.39 | 18.49% | 5.06% | 2.27% | 11.92% | |
69 Neutral | C$897.21M | 6.40 | 18.59% | 3.51% | 0.63% | 2106.19% | |
62 Neutral | C$877.46M | 13.30 | 27.32% | 5.07% | -0.78% | 313.58% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | C$109.45M | -0.89 | -44.87% | ― | 3.36% | ― | |
56 Neutral | C$2.56B | 2.00 | -24.33% | ― | 18.00% | -5135.26% | |
53 Neutral | C$5.57B | 39.24 | 54.95% | 0.86% | 6.51% | ― |
* Consumer Cyclical Sector Average
TSE:TRZ
Transat AT V & VV
2.69
1.04
63.03%
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Transat AT V & VV Corporate Events
Business Operations and StrategyFinancial Disclosures
Transat A.T. Narrows Loss and Boosts Cash as Profitability Improves in Q1 2026
Positive
Mar 10, 2026
Transat A.T. Inc. reported first-quarter fiscal 2026 revenues of $870.7 million, up 5% year over year, with adjusted EBITDA rising 68% to $33.6 million and the net loss narrowing sharply to $29.5 million, supported by higher traffic, improved yiel...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Second Proxy Advisor Backs Transat Slate, Rejects Dissident Push
Positive
Mar 2, 2026
Transat A.T. Inc. secured backing from a second major proxy advisory firm, Institutional Shareholder Services, which urged investors to support the company’s full slate of eight board nominees and its proposed amendment to expand the board s...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Glass Lewis Backs Transat Slate, Rejects Dissident Board Challenge
Positive
Feb 27, 2026
Independent proxy advisory firm Glass Lewis has recommended that Transat A.T. Inc. shareholders back the company’s full slate of eight board nominees and support an amendment to its articles to allow a board size of between eight and 15 dire...
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresShareholder Meetings
Transat Urges Support for Board Slate as Turnaround Gains Traction
Positive
Feb 25, 2026
Transat A.T. Inc. has urged shareholders to vote using the BLUE proxy in support of its slate of eight board nominees, arguing that the refreshed, industry-expert board is best positioned to oversee the next phase of its ongoing turnaround. The co...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Transat Rallies Shareholders Behind Board Slate in Heated Proxy Contest
Positive
Feb 12, 2026
Transat A.T. Inc. has filed and begun mailing its management information circular for its March 10, 2026 annual and special shareholders meeting, where a contested board election will be held. The company is urging investors to use the BLUE proxy ...
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.