MISSISSAUGA, ON, Sept. 27, 2022 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) today provided an update on its strategic initiatives and long-term financial targets.
Today Cargojet is hosting its previously announced Investor Day from 10 a.m. to 12:30 p.m. ET. A live audio feed of Investor Day will be available via dial-in information announced last week and a replay of the event, along with an updated investor presentation, can be accessed on the Investor Presentation section of Cargojet’s website at: http://cargojet.com/financials-page/.
“We believe our customer-centric focus, industry-leading on-time performance, our team of dedicated professionals and a strong balance sheet will allow us to continue to diversify our portfolio of services and position us well to face emerging macro headwinds,” said Ajay Virmani, President and Chief Executive Officer. “With our third quarter almost complete, our volumes remain stable and in line with our expectations.”
Cargojet is expected to reach a new milestone of a fleet size of 40 aircraft by the end of 2022, allowing it to expand its domestic overnight network to 16 Canadian cities, reaching more than 90% of Canadian population each day. The expanded fleet will also allow Cargojet to serve additional routes on its ACMI network for its strategic customers.
The Corporation is providing the following long-term financial targets for 2026:
- Total Revenue estimated to be between $1.3 billion to $1.4 billion (2021 Total Revenue $758 million);
- Adjusted EBITDA estimated between $500 million and $550 million (2021 Adjusted EBITDA $293 million);
- Adjusted Free Cashflow estimated between $320 million and $360 million (2021 Adjusted Free Cash Flow $160); and
- Net Debt to Adjusted EBITDA Leverage Ratio* (Net Debt/Adjusted EBITDA) targeted at between 1.50 and 2.50 (2021 Leverage Ratio 1.03).
All references to “$” in this press release are to Canadian dollars.
Cargojet is Canada’s leading provider of time sensitive premium air cargo services to all major cities across North America, providing Dedicated, ACMI and International Charter services and carries over 25,000,000 pounds of cargo weekly. Cargojet operates its network with its own fleet of 34 aircraft.