Cargojet's Q3 earnings missed expectations due to trade uncertainty and tariffs, though cash flow surged.

Cargojet's third-quarter results fell short of expectations, with revenue dropping 10.5% year-over-year to $219.9 million due to global trade uncertainty and U.S. tariff disruptions, particularly in its ACMI and Charter segments. Domestic Network revenue rose 6.3%, but adjusted EBITDA and EPS missed estimates, with EPS down 78% year-over-year. Despite challenges, the company generated $152.4 million in free cash flow, up 219%, aided by aircraft sales and fleet optimization. Co-CEO Jamie Porteous will retire at year-end, with Pauline Dhillon becoming sole CEO in January 2026. Analysts maintain a "Buy" rating, citing balance-sheet strength and long-term potential, with forecasts for improved EBITDA and revenue in 2025 and 2026.