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1. Company Snapshot

1.a. Company Description

Chorus Aviation Inc., through its subsidiaries, provides various aviation support services in the United States and Canada.The company operates through two segments, Regional Aviation Services and Regional Aircraft Leasing.The Regional Aviation Services segment includes all three sectors of the regional aviation, such as contract flying, including ACMI and charter operations; aircraft leasing; and maintenance, repair, and overhaul, as well as part sales and technical services.


The Regional Aircraft Leasing segment provides aircraft leasing to third-party air operators.As of December 31, 2021, this segment's portfolio of leased aircraft consisted of 62 aircraft of which 56 aircraft were on lease to airline customers, such as 23 Dash 8-400s, 18 ATR72-600s, four CRJ1000s, four E190s, two E195s and five A220-300s.The company was formerly known as Jazz Air Income Fund and changed its name to Chorus Aviation Inc.


in January 2011.Chorus Aviation Inc.was incorporated in 2010 and is based in Dartmouth, Canada.

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1.b. Last Insights on CHR

Chorus Aviation Inc.'s recent performance was driven by a significant net loss of CA$4.56 per share in FY 2024, compared to a profit of CA$2.20 in FY 2023. The company's revenue remained flat at CA$1.40b, while its net loss widened due to increased operating expenses. The company's debt reduction efforts and strategic asset management are positive steps, but the current valuation of CA$22.52 per share suggests a potential undervaluation, according to a recent analysis.

1.c. Company Highlights

2. Chorus Aviation's Q3 2025 Earnings: Solid Financials and Strategic Progress

Chorus Aviation reported adjusted earnings available to common shareholders per share of $0.60, a 40% increase over last year, with adjusted EBITDA of $51.6 million, a decrease of $2 million from last year. The company's EPS came in slightly below estimates of $0.611. Revenue growth for Voyageur is expected to be in the $140 million to $145 million range for the year, with an operating margin increase of 100 basis points year-to-date, moving from approximately 7.25% to 8.25%. Analysts estimate next year's revenue growth at -4.1%.

Publication Date: Nov -16

📋 Highlights
  • Share Buybacks Progress:: $35.2M repurchased YTD under $50M SIB program.
  • Debt Reduction:: Series B debentures redeemed, completing balance sheet restructuring.
  • Earnings Growth:: Adjusted EPS rose 40% to $0.60, with $51.6M adjusted EBITDA (down $2M YoY).
  • Liquidity & Asset Sales:: $217M liquidity, $20M expected from 3 Dash 8-400 aircraft sales by year-end.
  • Margin Expansion:: Voyageur's operating margin improved 100 bps to 8.25% YTD.

Financial Highlights

The company's financial performance was marked by a strong increase in adjusted earnings per share. The sale of 9 Dash 8-400 aircraft unlocked meaningful value for the company, and Chorus Aviation's liquidity remains strong with $217 million available at quarter end. The company expects to realize net proceeds of approximately USD 20 million from the sale of 3 Dash 8-400 aircraft by the end of this year.

Operational Progress

On the operational side, Jazz performed exceptionally well from both an operational and financial perspective, delivering solid on-time performance and generating strong earnings. Voyageur has been focused on growing their higher-margin business in defense, specialty M&A, and parts sales, and is well-positioned for growth in the defense sector following the release of the Canadian budget.

Valuation and Outlook

With a P/E Ratio of 9.1 and an EV/EBITDA of 4.52, the company's valuation appears reasonable. The Dividend Yield stands at 0.36%, and the Free Cash Flow Yield is 8.67%. Colin Copp mentioned that Voyageur is looking to aggressively pursue opportunities in the defense sector. The company's capital allocation priorities include share buybacks, debt paydown, growth through M&A, and return of capital programs, indicating a commitment to creating shareholder value.

Capital Allocation and Debt

Chorus Aviation has been actively managing its capital allocation, with $35.2 million in share buybacks year-to-date, and the completion of the redemption of Series B debentures, which substantially completes the company's debt repayment plans and balance sheet restructuring. The Net Debt / EBITDA ratio stands at 1.67, indicating a manageable debt burden.

3. NewsRoom

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Chorus Aviation (TSE:CHR) shareholders have endured a 24% loss from investing in the stock five years ago

Dec -04

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Chorus Aviation Inc. Announces Final Results of Substantial Issuer Bid

Nov -11

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Chorus Aviation Inc (CHRRF) Q3 2025 Earnings Call Highlights: Strong EPS Growth Amidst Leasing ...

Nov -08

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Chorus Aviation Inc. Announces Third Quarter 2025 Financial Results

Nov -06

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Chorus Aviation Inc. Announces Quarterly Dividend

Nov -06

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Jazz reaches tentative agreements with its heavy and line maintenance union

Oct -21

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Jazz named Canada's Safest Public Transportation Employer

Oct -10

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Advisory - Chorus Aviation Inc. to Present Third Quarter 2025 Financial Results on November 7, 2025

Oct -07

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.63%)

6. Segments

Regional Aviation Services

Expected Growth: 6.4%

Regional Aviation Services from Chorus Aviation Inc. achieved 6.4% growth driven by increased demand for air travel, expansion of regional routes, and strategic partnerships with major airlines. Additionally, investments in modernizing fleet and improving operational efficiency contributed to the growth.

Regional Aircraft Leasing

Expected Growth: 7.77%

Chorus Aviation Inc.'s 7.77% growth in Regional Aircraft Leasing is driven by increasing demand for air travel, fleet renewal and expansion by regional airlines, and a shift towards leasing over ownership. Additionally, Chorus' diversified customer base, strong relationships with OEMs, and ability to offer customized leasing solutions contribute to its growth.

Corporate

Expected Growth: 4.83%

Chorus Aviation Inc.'s corporate segment growth of 4.83% is driven by increased demand for regional air travel, expansion of existing contracts, and strategic acquisitions. Additionally, cost savings initiatives and investments in digital transformation have improved operational efficiency, contributing to the segment's growth.

7. Detailed Products

Regional Aircraft Leasing

Chorus Aviation provides regional aircraft leasing services to airlines, offering a range of aircraft types and flexible leasing options.

Contract Flying

Chorus Aviation offers contract flying services, providing airlines with aircraft, crew, maintenance, and insurance (ACMI) solutions.

Aircraft Maintenance, Repair, and Overhaul (MRO)

Chorus Aviation provides MRO services, including heavy maintenance, modifications, and repair work for regional aircraft.

Engineering and Design

Chorus Aviation offers engineering and design services, including aircraft modifications, interior design, and avionics upgrades.

Aircraft Sales and Trading

Chorus Aviation buys, sells, and trades regional aircraft, providing airlines with opportunities to acquire or divest aircraft.

8. Chorus Aviation Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Chorus Aviation Inc. faces moderate threat from substitutes as passengers have limited alternatives to air travel, but there are some substitutes such as trains and buses for shorter routes.

Bargaining Power Of Customers

Chorus Aviation Inc. has a large customer base, which reduces the bargaining power of individual customers, and the company's diversified revenue streams also reduce customer bargaining power.

Bargaining Power Of Suppliers

Chorus Aviation Inc. has a moderate level of bargaining power with its suppliers, as it is a large customer for aircraft and other supplies, but suppliers also have some bargaining power due to the specialized nature of their products.

Threat Of New Entrants

Chorus Aviation Inc. operates in a highly regulated industry with significant barriers to entry, including high capital requirements and regulatory hurdles, which reduces the threat of new entrants.

Intensity Of Rivalry

Chorus Aviation Inc. operates in a highly competitive industry with many established players, which leads to intense rivalry and competition for market share and customers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 59.42%
Debt Cost 8.98%
Equity Weight 40.58%
Equity Cost 14.49%
WACC 11.22%
Leverage 146.44%

11. Quality Control: Chorus Aviation Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
EIC

A-Score: 6.6/10

Value: 5.6

Growth: 5.9

Quality: 3.7

Yield: 6.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Air Transport Services Group

A-Score: 5.1/10

Value: 6.7

Growth: 4.9

Quality: 4.8

Yield: 0.0

Momentum: 9.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Sun Country Airlines

A-Score: 4.8/10

Value: 7.2

Growth: 6.7

Quality: 5.7

Yield: 0.0

Momentum: 6.5

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Chorus Aviation

A-Score: 4.7/10

Value: 7.8

Growth: 2.2

Quality: 4.7

Yield: 0.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Spirit Airlines

A-Score: 3.7/10

Value: 9.8

Growth: 1.6

Quality: 2.9

Yield: 3.0

Momentum: 1.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Allegiant Travel

A-Score: 3.2/10

Value: 6.1

Growth: 3.0

Quality: 1.7

Yield: 0.0

Momentum: 5.5

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.97$

Current Price

21.97$

Potential

-0.00%

Expected Cash-Flows