Cargojet Inc. (TSX: CJT), Canada’s leading provider of time-sensitive air cargo services, has reported a record-setting performance for the first quarter of 2025, underscoring its strategic pivot towards domestic operations and a reduced reliance on the U.S. market. This shift has positioned the company to capitalize on evolving e-commerce trends and changing global trade dynamics.
In Q1 2025, Cargojet achieved revenues of $169 million (USD), maintaining stability compared to the same period in the previous year. Adjusted EBITDA rose by 3.6% to $57 million, reflecting improved operational efficiency. The company’s adjusted free cash flow remained consistent at $42.5 million, indicating robust financial health despite macroeconomic challenges.
CEO Dr. Virmani highlighted that the company is realigning its cost structure to adapt to current demand levels, focusing on network optimization and enhancing productivity in maintenance and operations. This includes reducing discretionary expenditures while maintaining industry-leading on-time performance. Cargojet’s fleet, consisting of 40 aircraft, operates over 25 million pounds of cargo weekly, primarily within North America.
Despite ongoing inflationary pressures and slower economic growth, Cargojet remains optimistic about long-term prospects. The company anticipates continued growth in domestic e-commerce, driven by the decline of traditional retail and the shift towards online shopping. Additionally, changes in global supply chains and trade flows present new opportunities for the company to leverage its flexible and efficient network.
Cargojet’s record Q1 results reflect the company’s successful adaptation to a changing market landscape. By focusing on domestic operations and enhancing operational efficiency, Cargojet is well-positioned to navigate economic uncertainties and capitalize on emerging opportunities in the air cargo sector.
As of April 24, 2025, Cargojet’s stock (TSX: CJT) is trading at $145.50, up 2.3% from the previous close. The stock has experienced a 12% increase over the past month, reflecting investor confidence in the company’s strategic direction.
