Key Highlights

  • Cargojet reported second-quarter 2026 total Revenue of about $275.8 million, up about 15.8% year over year, with net Earnings of about $7.0 million, a swing from a prior-year loss.
  • Adjusted earnings before interest, tax, Depreciation and Amortisation rose about 8.9% to about $87.3 million, though the Margin compressed modestly, which management pointed to mainly to higher fuel costs that were largely recovered through surcharges.
  • Revenue growth of about 15.8% indicates healthy Demand across its network and services, while adjusted earnings up about 8.9% show profitability improving, even with modest margin compression from fuel costs that were largely offset by surcharges.
  • The most notable development is the free-cash-flow turnaround — an inflow of about $56.2 million, improved by about $128.7 million year over year — which reflects both better operating performance and disciplined Capital spending, important for a capital-intensive airline.
  • Continued revenue growth, driven by E-commerce and express demand, would support the recovery.
  • Key risk to watch: The risks are meaningful. Cargojet is exposed to economic conditions and e-commerce volumes, which can soften in downturns, affecting cargo demand.

Market Snapshot

Cargojet (TSX: CJT) operates the backbone of Canada's time-sensitive air-cargo network, flying overnight freight — including a large Volume of e-commerce shipments — across the country, and providing dedicated aircraft and charter services internationally. After a challenging stretch, its second-quarter 2026 results showed a notable improvement: double-digit revenue growth, higher adjusted earnings and a striking turnaround in free cash flow, alongside excellent operational reliability. The headline's question is a fair one for a company that has been working through headwinds: is Cargojet cleared for takeoff, and what risks remain on the runway? Cargojet reported second-quarter 2026 total revenue of about $275.8 million, up about 15.8% year over year, with net earnings of about $7.0 million, a swing from a prior-year loss. Adjusted earnings before interest, tax, depreciation and amortisation rose about 8.9% to about $87.3 million, though the margin compressed modestly, which management pointed to mainly to higher fuel costs that were largely recovered through surcharges. The standout was free cash flow: an inflow of about $56.2 million, an improvement of about $128.7 million versus the prior year — a notable turnaround that reflects better operations and disciplined capital management. Operationally, Cargojet emphasised its One Fleet strategy, which allows it to deploy aircraft dynamically across its network, and it achieved on-time performance of about 99.2% — a mark of operational excellence important to its customers. Management attributed the strong results to disciplined cost management and a focus on revenue quality. The company operates across its domestic overnight network, dedicated aircraft (ACMI) and charter services.

Business Overview

Cargojet provides time-sensitive overnight air-cargo services across Canada, operating a fleet of cargo aircraft that move freight — much of it e-commerce and express shipments — between major cities on a scheduled overnight basis. It also provides ACMI services, in which it supplies aircraft, crew, maintenance and insurance to other operators, and charter services for specific cargo needs. Cargojet holds a dominant position in the Canadian overnight air-cargo market, underpinned by long-term customer relationships and the critical infrastructure it provides for e-commerce and express logistics.

Financial Performance

Cargojet's second-quarter numbers show a Business regaining momentum and, importantly, improving its cash generation. Revenue growth of about 15.8% indicates healthy demand across its network and services, while adjusted earnings up about 8.9% show profitability improving, even with modest margin compression from fuel costs that were largely offset by surcharges. The most notable development is the free-cash-flow turnaround — an inflow of about $56.2 million, improved by about $128.7 million year over year — which reflects both better operating performance and disciplined capital spending, important for a capital-intensive airline. The swing to net earnings of about $7.0 million reinforces the improvement. The 99.2% on-time performance underscores the operational reliability that underpins customer relationships. Market watchers should note that the business is capital-intensive and can carry meaningful leverage, so the improved cash generation is a positive signal for financial health. The focus on revenue quality and cost discipline suggests a management approach geared toward sustainable profitability rather than growth at any cost. Cargojet's competitive position is a large part of what makes the turnaround meaningful. The company operates the dominant overnight air-cargo network in Canada, a position built over years and difficult to replicate, since it requires a fleet of cargo aircraft, a national network of routes and facilities, and long-term relationships with the major logistics and e-commerce customers that depend on reliable overnight delivery. That entrenched position gives Cargojet a degree of pricing power and customer stickiness, reinforced by operational excellence — the roughly 99.2% on-time performance is not just a statistic but a competitive moat, because customers moving time-sensitive freight cannot tolerate unreliability. The One Fleet strategy, which lets the company deploy its aircraft flexibly across its domestic network, dedicated-aircraft arrangements and charter work, improves asset utilisation and helps manage the high fixed costs inherent in operating an airline. The dramatic free-cash-flow turnaround this quarter is notable precisely because air cargo is capital-intensive: generating strong cash rather than consuming it signals both healthier operations and disciplined capital spending, which strengthens the Balance Sheet and supports the company's financial flexibility. The main structural vulnerability is that high fixed costs cut both ways — they reward volume growth but punish declines — so Cargojet's fortunes remain tied to e-commerce and express-shipping demand, and to its ability to keep passing volatile fuel costs through to customers via surcharges, as it did this quarter.

Growth Catalysts to Watch

Continued revenue growth, driven by e-commerce and express demand, would support the recovery. Sustained strong free-cash-flow generation would strengthen the balance sheet and could fund capital returns or Debt reduction. Margin stability or improvement, as fuel costs are managed and surcharges applied, would enhance profitability. Growth in ACMI and charter services, and any new long-term contracts, would underpin revenue. Continued operational excellence, reflected in high on-time performance, would reinforce customer loyalty. A healthy e-commerce environment would support volumes. Given the improved results, evidence that the turnaround is durable could support the shares. Effective navigation of any Tariff or trade-related shifts affecting cargo volumes would help.

Key Risks to Consider

The risks are meaningful. Cargojet is exposed to economic conditions and e-commerce volumes, which can soften in downturns, affecting cargo demand. Fuel costs are a notable and volatile expense; while largely recovered through surcharges, sharp movements can pressure margins. The business is capital-intensive, requiring Investment in aircraft, and can carry leverage, so financial discipline is important. Customer concentration is a consideration, given reliance on major logistics and e-commerce clients. Competition and changes in the logistics landscape could affect its position. Trade and tariff developments can influence cargo flows. As a company with high fixed costs, volume declines have an outsized impact on profitability. The modest margin compression is a reminder of cost pressures. The shares can be volatile and sensitive to demand and fuel trends.

Conclusion

Cargojet's second-quarter 2026 results — double-digit revenue growth, higher adjusted earnings, a swing to net profit and a major free-cash-flow turnaround, all with excellent operational reliability — show Canada's overnight air-cargo leader regaining altitude after a challenging period. The headline's question leans positive: the improvement, especially in cash generation, is encouraging, and Cargojet's dominant network position and operational excellence are real strengths. The main caveats are its sensitivity to e-commerce volumes, fuel costs, capital intensity and leverage. Market watchers should watch revenue and volume trends, free-cash-flow durability, margins and the balance sheet to judge whether the recovery is sustainable, while remaining mindful of the cyclical and cost pressures inherent in air cargo.

Q. What does Cargojet Inc. do?

A. Cargojet provides time-sensitive overnight air-cargo services across Canada, operating a fleet of cargo aircraft that move freight — much of it e-commerce and express shipments — between major cities on a scheduled overnight basis. It also provides ACMI services, in which it supplies aircraft, crew, maintenance and insurance to other operators, and charter services for specific cargo needs.

Q. What are the latest updates on CJT stock?

A. Cargojet reported second-quarter 2026 total revenue of about $275.8 million, up about 15.8% year over year, with net earnings of about $7.0 million, a swing from a prior-year loss. Adjusted earnings before interest, tax, depreciation and amortisation rose about 8.9% to about $87.3 million, though the margin compressed modestly, which management pointed to mainly to higher fuel costs that were largely recovered through surcharges.

Q. What could move CJT stock going forward?

A. Continued revenue growth, driven by e-commerce and express demand, would support the recovery.

Q. What risks should be considered for Cargojet Inc.?

A. The risks are meaningful. Cargojet is exposed to economic conditions and e-commerce volumes, which can soften in downturns, affecting cargo demand.

Q. On which exchange is Cargojet Inc. listed and what sector does it belong to?

A. Cargojet Inc. trades on the TSX under the ticker symbol CJT and is classified within the Industrials sector.