Overview

* Chorus Aviation ( CHRRF ) Q2 net income CAD 32.4 mln vs net loss last year

* Adjusted net income beats analyst expectations, driven by Voyageur growth

* Adjusted EBITDA surpasses estimates, reflecting strong operational performance

Outlook

* Chorus forecasts 2025 fixed margin of C$59.6 mln under CPA

* Company expects 2026 aircraft leasing revenue to be C$104 mln

* Chorus plans 2025 capital expenditures of C$30.5 mln to C$45.5 mln

* Company anticipates predictable free cash flows from Jazz aircraft leasing

Result Drivers

* VOYAGEUR GROWTH - Increased parts sales, contract flying, and MRO activities at Voyageur contributed to higher Adjusted EBITDA

* COST REDUCTION - Lower corporate costs and reduced stock-based compensation improved financial results

* LEASE RATE IMPACT - Decline in aircraft leasing revenue under CPA due to changes in lease rates, partially offset by favorable US dollar exchange rate

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 C$324.61

Operatin mln

g

Revenue

Q2 Beat C$17.21 C$15.50

Adjusted mln mln (4

Net Analysts

Income )

Q2 Net C$32.44

Income mln

Q2 Beat C$51.33 C$51 mln

Adjusted mln (6

EBITDA Analysts

)

Q2 C$300.54

Operatin mln

g

Expenses

Q2 C$24.07

Operatin mln

g Income

Q2 C$32.83

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the airlines peer group is "buy"

* Wall Street's median 12-month price target for Chorus Aviation Inc ( CHRRF ) is C$29.00, about 24.8% above its August 1 closing price of C$21.82

* The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)