Mesa Airlines(MESA) - 2026 Q1 - Quarterly Results

Financial Performance - Net income for Q4 2025 was $5.0 million, or $0.12 per diluted share, with revenues of $464.1 million, reflecting a 23.0% increase in block hour activity [4] - For the full year 2025, total revenues reached approximately $1.7 billion, an 18.2% increase year-over-year, with adjusted net income of $114.0 million or $2.80 per diluted share [6] - Revenues for Q4 2025 reached $464.1 million, a 20.7% increase from $384.8 million in Q4 2024; total revenues for the year were $1,676.5 million, up 13.7% from $1,474.0 million in 2024 [22] - Operating income for Q4 2025 was $34.1 million, slightly down from $35.0 million in Q4 2024; annual operating income increased to $168.3 million from $137.0 million [22] - Net income for Q4 2025 was $5.0 million, a decrease from $22.0 million in Q4 2024; however, annual net income rose to $76.2 million from $64.6 million [22] - Adjusted net income for Q4 2025 was $22.9 million, compared to $20.0 million in Q4 2024; annual adjusted net income increased to $114.0 million from $64.0 million [27] Assets and Liabilities - The company maintained unrestricted cash and cash equivalents of $296.5 million and total debt of $1.2 billion as of December 31, 2025 [9] - Total current assets increased to $540.7 million in 2025 from $453.3 million in 2024, while total assets rose to $3,276.6 million from $2,767.8 million [23] - Total liabilities increased to $1,948.1 million in 2025 from $1,651.5 million in 2024, with long-term debt and finance leases rising to $882.9 million [23] Fleet and Operations - The merger with Mesa Air Group, completed in November 2025, added 60 E175 aircraft to the fleet and incurred $26.3 million in merger-related costs in 2025 [11] - The company took delivery of 12 new E175 aircraft in 2025, with 29 additional aircraft on order for future delivery [10] - The fleet size increased to 311 E175 family aircraft, up 68 aircraft from the previous year, enhancing partnerships with major airlines [6] - Block hour production for 2026 is expected to be at least 865,000 block hours, with capital expenditures projected at approximately $90 million [13] - Block hours for Q4 2025 were 198,299, a 23.0% increase from 161,276 in Q4 2024; total block hours for the year were 699,313, up 18.2% from 591,677 [28] Future Projections - For 2026, the company projects total revenues of approximately $2.0 billion and adjusted EBITDAR exceeding $380.0 million [13] - The company has firm orders for 29 new Embraer E175 aircraft to be delivered from 2026 through 2029, indicating ongoing market expansion [30] Financial Ratios - The company reported an adjusted EBITDAR of $342.4 million for the full year 2025, resulting in a leverage ratio of 2.7x [11] - The leverage ratio improved to 2.7x in 2025 from 3.2x in 2024, reflecting better debt management [27]