Air Canada's Upcoming Earnings Report: A Detailed Analysis

Core Viewpoint - Air Canada is set to release its quarterly earnings on February 13, 2026, with Wall Street estimating earnings per share (EPS) of $0.20 and projected revenue of approximately $5.55 billion, which could significantly impact the stock price [1][2][6] Financial Performance - The expected year-over-year increase in earnings is driven by higher revenues for the quarter ending December 2025, indicating a positive outlook if estimates are surpassed [2] - The company has a negative price-to-earnings (P/E) ratio of -19.80, indicating current losses, and a price-to-sales ratio of 0.27, suggesting the stock is valued at about 27 cents for every dollar of sales [3][6] - The enterprise value to sales ratio is 0.62, reflecting the company's valuation in relation to its revenue [3] Leverage and Liquidity - The enterprise value to operating cash flow ratio stands at 3.51, indicating how many times the operating cash flow can cover the enterprise value [4] - The earnings yield of approximately -5.05% further indicates unprofitability, and the debt-to-equity ratio of 5.40 shows that Air Canada is heavily leveraged, relying significantly on debt financing [4][6] - The current ratio of 0.59 suggests potential liquidity challenges in meeting short-term obligations [5] Management Insights - The management's discussion during the earnings call will be crucial in determining the sustainability of any immediate price changes and future earnings expectations, as investors will be keen to understand how Air Canada plans to address these financial challenges [5]