Chorus Aviation Q4 Earnings Call Highlights

Core Insights - Chorus Aviation has made significant strides in 2025, including a notable increase in adjusted earnings and strategic acquisitions, positioning itself for future growth [2][3][4] Acquisition and Strategic Moves - The company announced the acquisition of Kadex Aero Supply for approximately CAD 50 million, which is expected to be immediately accretive to earnings and free cash flow [6][8] - Chorus executed agreements to sell nine Q400 aircraft and acquired Elisen & Associates, an engineering firm, enhancing its operational capabilities [2][4] Financial Performance - Chorus reported adjusted earnings available to common shareholders of CAD 2.27 per share for 2025, reflecting a 134% increase from CAD 0.97 in the previous year [2][7] - The company ended the year with adjusted EBITDA of CAD 170 million to CAD 185 million and free cash flow of CAD 100 million to CAD 110 million projected for 2026 [5][21] Capital Allocation and Shareholder Returns - Chorus increased its annual dividend to CAD 0.44, up from CAD 0.32, aligning with its strategy to distribute approximately 25% of free cash flow [9] - The company committed to repurchasing up to CAD 100 million in shares over the next four years and has already bought back CAD 85.2 million in shares in 2025 [10][6] Operational Updates - Jazz Aviation, a subsidiary, reported steady contracted earnings and operational results, while Voyageur is shifting its business mix towards higher-margin defense and specialty MRO services [17][18] - Voyageur generated CAD 135 million in revenue for 2025, slightly below projections due to timing issues with larger aircraft parts sales [19] Future Outlook - Chorus outlined a four-year capital allocation plan aiming to generate CAD 500 million to CAD 550 million in free cash flow and net proceeds from asset sales, with a flexible allocation range for growth and debt repayment [11][12]