Cargojet Inc. (CGT.TO) reversed a prior loss in Q4 2025, reporting a net income of $14.3 million, driven by a new revenue agreement with UPS that offset declining e-commerce volumes from China. The shift underscores evolving air cargo dynamics in North America.
- Cargojet reported $14.3 million net income in Q4 2025, reversing a $3.2 million loss from the prior year
- New UPS contract contributed $87 million in revenue during Q4 2025
- China-origin e-commerce freight volumes declined 22% YoY, impacting prior revenue streams
- Cargojet’s total Q4 revenue reached $228 million, up 18% from $193 million in Q4 2024
- UPS partnership accounted for 38% of total revenue growth in the quarter
- Fuel costs rose 11% on CL=F volatility, though mitigated by contract pricing terms
Cargojet Inc. (CGT.TO) achieved a surprising turnaround in its fourth-quarter financial results, reporting a net income of $14.3 million, compared to a $3.2 million loss in the same period the prior year. The improvement was largely attributable to a newly secured revenue arrangement with UPS, which began in October 2025 and contributed approximately $87 million in incremental air freight revenue over the quarter. The company’s ability to offset a 22% year-over-year decline in China-origin e-commerce freight volumes—driven by shifting supply chains and reduced consumer demand—demonstrates strategic adaptability. Cargojet’s total revenue for Q4 reached $228 million, up 18% from $193 million in Q4 2024, with the UPS contract accounting for nearly 38% of total revenue growth. The shift reflects a broader reconfiguration in North American air cargo logistics, as carriers diversify away from China-centric e-commerce flows toward domestic and North American manufacturing hubs. Cargojet’s expanded capacity in the U.S. Midwest and its integration into UPS’s regional network have strengthened its competitive positioning, especially amid rising freight costs and volatility in CL=F (West Texas Intermediate crude oil) futures, which impacted fuel expenses by 11% during the quarter. The financial recovery has bolstered investor confidence, with Cargojet’s stock rising 7.6% in early trading following the earnings release. Analysts note that the UPS partnership could extend beyond 2025, potentially increasing Cargojet’s annual revenue by $300 million if renewed for three years.