Q2 2025 Chorus Aviation Inc Earnings Call
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Following the presentation, we will conduct a question and answer session. If at any time. During this call you require immediate assistance. Please press star zero for the operator.
This call is being recorded on Wednesday August six 2025, I would now like to turn the conference over to Matt Lop-ear. Please go ahead.
1.
Thank you operator, Hello, and thank you for joining us today for our second quarter conference call and audio webcast with me today from chorus are Colin Copp, President and Chief Executive Officer, and Gary Osborne, Chief Financial Officer.
We will begin today's call with a brief summary of the results followed by questions from the analyst community.
As there may be some forward looking discussion during this call I ask that you refer to the caution regarding forward looking statements and information found in our MD&A.
This pertains specifically to the results and operations of Chorus Aviation Inc. For the six months ended June 32025, as well as the outlook section and other sections of our MD&A, where such statements appear.
Finally, some of the following discussion involves non-GAAP financial measures, including references to adjusted net income adjusted EBT, adjusted EBITDA leverage ratio and free cash flow.
Please refer to our MD&A for further information relating to the use of such non-GAAP measures I'll now turn the call over to Colin comps.
Thank you, Matt and good morning, everyone.
I'm happy to report on a strong quarter.
<unk> was solid performance across all key financial metrics.
On June 25, we announced the declaration of our cash dividend of <unk> <unk> per share payable on August 15th with future dividends to be declared at quarterly report outs.
As we grow earnings and cash flows we aim to distribute approximately 25% of our free cash flow after debt repayments as dividends to our shareholders.
Sure in CIB program NFIB that we completed in May we continue to buy back shares and year to date have repurchased a total of $27 $2 million in core shares.
And on September 30, we will redeem our series B debentures in the principal amount of $28 $7 million.
Which will further strengthen our balance sheet and position course for growth.
Additionally on July 20, <unk>, we were very pleased to announce the strategic acquisition of Ellison and Associates, Inc. A leading provider of aerospace engineering and certification services based in Montreal.
This is a business who we have worked within the past and we see great potential in.
Founded in 1997, Allison has built a reputation for excellence in innovation and today sits at the core Montreal Aerospace community renowned for its ability to deliver complex engineering defense and sustainable aviation projects.
Alison will be key to growing and enhancing our specialized MRO capabilities, while adding valuable expertise and industry relationships.
We are very pleased that founders and co presidents defined around and TAFE Riemann will continue to lead Ellison, and we look forward to welcoming welcoming their entire team.
The transaction is expected to close prior to the end of the year and is a key strategic move to support growth.
On the asset sales side as we discussed last quarter, we've had significant interest from buyers for the three dash eight four hundreds coming out of the CPA This year.
And the six next year and we anticipate concluding a sales agreement on our first three soon.
Just turning to the operating side.
Our businesses have all delivered very well this quarter, providing consistent and strong earnings and securing new contracts.
Let me touch on some of those highlights.
Doug and the team at jazz have again generated strong earnings under the CPA with Air Canada, while demonstrating a dedicated focus to operational excellence.
Recent proud moment for us we're seeing our partner Air Canada ranked first among north American carriers in on time performance for the months of May and June.
And we applaud jazz for its role as an important operational partner and contributing to that achievement.
Corey and the team of <unk> continue to perform very well and are on track for yet another record year revenue EBITDA and income.
Driven by growth in their part sales specialty MRO and defense business.
And we continue to expect <unk> 2025, total revenue to come in at approximately $150 million for the year.
In this quarter, we saw an accelerated shift in business mix from the lower margin overseas flying to higher margin flying contracts such as the major contract with DMD.
Which will continue to drive improved profitability as we move forward.
This shift has been consistent with our long term plan and has been accelerated with the geopolitical pressures and funding constraints, resulting from the world food program and United Nations, reducing contracted flying operations.
On the specialty MRO side of the business Voyager has partnered with Maria <unk>.
Global U S based defense and National Security company to develop their dash eight 300 buyers Swift aerial firefighter.
The first of two aircraft is currently undergoing flight certification and is expected to be completed by the end of the year.
Trey is paying for the program costs and Voyager could potentially operate the aircraft on their behalf.
Depending on the success of the program there could be future opportunities for Voyager that may include aircraft modifications and operations.
At Signet Lane and the team are making excellent progress towards our pilot training Academy and are preparing to welcome their ninth cohort in the coming weeks.
Additionally, Signet has recently been awarded.
The department of National Defence standing offer which is valid for up to three years to provide continuation training for pilots.
And we're very pleased to have six pilots from eight weighing in Trenton already in the training program.
This quarter, we have seen strong execution against our plan.
Which is driving improvements in our free cash flow net income and adjusted EBITDA.
We're very focused on improving shareholder returns and are now well positioned to grow our business going forward.
I'd like to thank our shareholders for their ongoing support.
And our board of directors for their strong guidance and recognize our employees across all of our companies for the focus and dedication to our six.
I'll now pass it over to Gary for him to take you through the financials.
Thank you Colin and good morning.
We are pleased to report our Q2 financial results that are in line with our expectations and demonstrated steady performance across our subsidiaries.
And continued reduction in corporate operating costs.
Looking at the results adjusted earnings available to common shareholders per share was <unk> 66.
An increase of 59 per share over Q2 2024.
This increase was due to the sale of our rental business and improve financial results attributable to growth at Voyager and lower corporate costs.
Adjusted EBITDA came in at $51 3 million for the quarter, an increase of zero point $8 million.
Over Q2, 2024, and finally free cash flow was $34 6 million, an increase of $6 4 million over Q2 2024.
Our leverage ratio was one five at June 30, which is in the middle of our targeted operating range of one to two times.
Looking at the results adjusted earnings available to Common shareholders per share was 66 cents, an increase of 59 cents per share over Q2 2024.
This along with existing liquidity of $246 5 million, both strength and flexibility to support future investments and growth in the business.
We continue to work through the sales agreement on our first three dash eight 400 aircraft due to exit the CPA with Air Canada later this year.
During the process, we have seen an improvement in current market prices of the dash eight 400 aircraft.
We now expect to achieve average aircraft net proceeds of between six and $7 $5 million U S. Each.
We would also expect this range to apply to the remaining six dash eight 400 aircraft exiting the CPA in 2026.
Chorus continues to generate predictable free cash flow from its businesses, which allows us to return capital to shareholders and focus on the growth of our company.
As Colin noted, we recently announced the initiation of a quarterly dividend of <unk> <unk> per common share beginning with the first payment in the coming weeks.
We intend to pay out approximately 25% of our long term free cash flow after debt repayments.
This will provide an opportunity to grow the dividend over time, while maintaining capital for investment opportunities.
We continue to see Voyager achieving the goal we set out in our 2023 Investor day of approximately $150 million in total revenue by the end of the year.
We have also updated our U S to Canadian dollar rate in the outlook section of the MD&A for the remainder of 2025 and 2026 to reflect our.
Forecasted U S to Canadian foreign exchange rate of 135 from the previous 140 related to aircraft leasing under the CPA revenue and U S denominated debt.
The underlying lease amounts denominated in U S dollars remain unchanged from our last forecast.
We are now ready to take your questions.
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Your first question comes from Kevin Chiang of CIBC. Your line is now open.
Hi, good morning, everybody. Thanks for all the details in your prepared remarks.
Jerry just maybe on some of the comments you made related to the expected.
Aircraft sale I guess of the nine units.
Call. It about 10 million Canadian per per unit can you remind us.
What's the what's the book value for that or what's the potential Daniel earned if you achieve that that sales price.
Yes, we're not because we're getting into an eight we're not getting into any gain on the Kevin but it would be great around our book value.
Okay.
I'm sorry can quickly do the math here, but I guess, if you were to apply I guess, what you see as a market rate versus.
The rest of your covered fleet is there upside relative to the current net book value you disclose of 761, I guess at the end of Q2 here or or.
Or is there upside to that number.
No I don't think so Kevin.
I think when you look at that Thats correct.
Look those are not all aircraft coming under the CPA are being sold. So these are at 12% to 14 years old aircraft. So they are a little bit different we have <unk> nine hundreds in some Q4 hundreds that are less.
Less than 10 years old within that so, but but what I would take from it is we've seen an improvement in the current values of the Q4 100 and as we go through the sales process, we feel pretty good about where its been building.
Okay.
And maybe just just trying to Voyager here.
Thanks for for reaffirming the $1 50 of revenue this year.
If I look at the first half so we've seen a little bit I guess I'll call it quarterly volatility in sales.
Sales of our parts can be a little bit transactional here, but.
As you as you look at I guess, the mix of <unk> business changing here, especially as you add in Allison and some other opportunities I think you've talked about 25% EBITDA margin is.
The average rate does that just a mix shift impact that margin over the long term it feels like some of the stuff might be higher margin. So maybe not on a.
Am I not shift that much noise from quarter to quarter, Joe, but as we look over the next few years is there upside to that 25% margin is the mix of this business changes or or does it all kind of level out of the same at the same rate.
On the EBITDA margin, it's probably around the same.
<unk> thousand 425% has been consistent I think what we find with the overseas buying Kevin is the profitability. So your net income is a little more challenged as it is a bit more depreciation on it so what we see as the overall profitability coming up as we shift away.
Okay. So kind of like maybe an EBIT margin might be might look a little bit better even if EBITDA margins staying that relatively looked relatively consistent okay. Okay. I'll leave it there and I'll pass along thank you very much for taking my questions.
Okay. Um, and maybe just just trying to Voyager here. Um, thanks for for uh, reaffirming the 150 of Revenue this year. Um, if I look at the first half, though, we've seen a little bit, I guess I'll I'll call it quarterly volatility and I get you, I get it. You know, sales uh, of of Parts can be a little bit transactional here. But you know, as you as you look at, I guess the mix of voyagers business changing here especially as you as you add in Ellison and and and and and and and some other opportunities. I think you've talked about 25%. Ebita margin is is kind of the average rate does that does a mixed shift impact that margin of the long term. It, it feels like some of the stuff might be higher margin. Uh, so, so, maybe not on a, you know, am I not shift that much, you know, as we go from quarter to quarter this year, but as we look at the next few years, is there upside to that 25% margin as as the mix of this business changes, or, or does it all kind of level out at the same at the same rate?
Our next question comes from James Mccorkle of RBC capital markets. Your line is open.
Hey, good morning, and thanks for having me on just wanted to ask a question on the Allison on some of the expansion opportunity there I.
Um, on the ibida margin, it's probably around the same. Um, you know, that 242% has been consistent. I think what we find with the overseas flying. Uh, Kevin is the profitability, say your net income is a little more challenged because it has a bit more depreciation on it. So, what we see is, um, the overall profitability coming up as we shift away,
To provide.
Some exposure to verticals beyond some of your typical regional markets. So can you just kind of talk about your role and potentially getting a foothold in some of the.
Okay. So kind of like a maybe maybe an ebit margin. Might might look a little bit better even if ebit down margin is staying relatively relatively consistent. Okay. Okay, you know what, I'll leave it there and I'll pass along. Thank you very much for taking my questions.
Yes, adjacency tears and any broader strategic expansion opportunities you're exploring in some of these categories.
Hi, James it's fallen.
So, our next question comes from James mcgargle of RBC Capital markets. Your line is open.
Good question.
<unk>.
The acquisition as you are alluding to is very strategic for us we're looking for opportunities for them to continue to grow out their business.
There is a lot of different things they work on but there is I would say probably.
Big chunk of what they do is very much aligned with Voyager.
On the defense side, and special mission side as far as modifying aircrafts. So.
Hey, good morning. Uh, thanks for having me on. Just wanted to ask a question on the, uh, Ellison, uh, some of the expansion opportunities there, you know, it seems to provide, uh, you know, some exposure to verticals Beyond, you know, some of your, your typical Regional markets. So can you just kind of, you know, talk about your role and potentially getting a foothold in some of the uh, the adjacencies tears and then, you know, any broader strategic expansion opportunities, uh you're exploring in some of these categories.
When you start looking at some of the other stuff they do they touch on with other customers like do they do touch on some rotary stops they've done different things different helicopter type projects.
That gives us a lot of.
Different kind of potential as we move forward with them to look at a broader spectrum of aviation side of things but.
Most of what they do is fairly aligned with what where we're operating or what we do in our current businesses.
Okay. Thanks for the color and then just on the guidance.
There is a slight.
Change to the to the guide with the quarter.
Can you just talk about what drove that it seems like FX probably.
Hi James. This is calling. Yeah, it's a good question. I mean, the uh, the acquisition, you know, as you're alluding to very strategic for us, we're looking for opportunities for them to continue to grow out their business. Um, there's a lot of different things they work on, uh, but there's I would say, probably, you know, a big chunk of what they do is very much aligned with voyager, um, on the defense side and special Mission side as far as modifying aircraft. So um, when you start looking at some of the other stuff, they do, they touch on, um, with other customers, like they do touch on some rotary stuff. They've done, um, different things, different helicopter, type projects. Um,
Was it a little bit of a headwind.
Additional factors that play there that you are that you can call out.
Yes, James Gary There is no other factors other than the U S to Canadian dollar I think generally speaking <unk>.
It gives us a lot of, you know, different kind of potential uh as we move forward. With them to to look at a broader spectrum of Aviation uh side of things. But you know the most of what they do is fairly aligned with what we're we're operating, or what we do in our current businesses.
A drop in the U S to Canadian dollars right. It's been forecasted by all the major banks that youre going to see a weaker U S dollar and that's probably the policy going on down sales. So what we've done is reflected at $1 35 versus the previous 140 more just a forecast around that it makes a bit of a difference on the revenue line, but when you look at the net after debt payments it doesn't really make a material.
Play there that you uh, that you can call out.
Real difference, but we just wanted to get that updated because we are seeing the U S. Dollar below 140 consistently down so moving ahead, we moved it to one <unk>.
I appreciate the color and I'll turn the line over thank you.
Thank you thanks James.
Your next question comes from Cameron <unk> from National Bank Financial Your line is now open.
Yeah. Thanks, Good morning, I just wanted to follow up I guess on the M&A question I guess.
What else are you I guess are you seeing out there as far as potential acquisition targets I guess has anything changed since the last quarter on your potential opportunities that might be available to you.
Yeah James Gary uh there's no other factors other than the US 2 Canadian dollar. I think generally speaking we've all seen a um you know drop in the US Canadian dollar rate it's been forecasted by all the major banks that you're going to see a weaker US dollar and that's probably the policy going on down south. So what we've done is reflected at 1 135 versus the previous 140 more just a forecast around that. It makes a bit of a difference on the revenue line, but when you look at the net after debt payments it doesn't really make a material difference. But we just wanted to get that updated because we are seeing the US dollar below, 140 consistently now. So moving ahead, we moved it to 135.
I appreciate the call and I'll I'll turn the line over. Thank you.
Hi, Cameron it's Colin.
Thank you. Thanks James.
Look like.
Like I think we've alluded to it a little bit in the last couple of calls we really had we had a lot of work to do to get the organization kind of ready and posed for acquisitions, we've done that work.
Your next question comes from Cameron derekson from National Bank Financial. Your line is now open.
We've talked a lot about that is first balance sheet and all those good things so <unk>.
As we've been doing that pipeline has been growing and we've been working quite hard on that and behind the scenes.
Yeah, thanks. Uh, good morning. Just want to follow up, I guess on on the m&a question. Um, I guess, you know what else are I guess? Are you seeing out there? Uh as far as potential acquisition targets, I guess has anything changed since the last quarter on, you know, potential opportunities that might be available to you.
With a lot of focus on on various aviation.
Opportunities. So that list is growing and we are starting to go through that quite aggressively now Allison was one of the first ones that popped out it was an obvious one that made a lot of sense very strategic.
But there are several that are obviously are bigger and larger that allow for more diversification that we're working on right now can't get into any of the specifics but there.
Hi Cameron, it's Colin. Um, you looked, uh, you know, like I think we've alluded to it a little bit in the last couple of calls, you know, we really had. We had a lot of work to do to get the organization kind of ready and pose for Acquisitions. We've done that work. Um, you know, we've talked a lot about that as far as balance sheet and all those good things. So,
They're definitely there's a good pipeline there and we're working through it and we're we're hopeful we'll have more to talk about as we get in towards the end of the year or next year for sure.
Okay, that's great and maybe a second question I guess just on the I guess the fire fighting opportunity here I mean, you announced this.
The first of two aircraft that you modified.
I'm just wondering if you could maybe go into little more detail on how operating those aircrafts might work other I guess other companies out there that this product could be useful for that might be.
The potential contract for you to operate the aircraft on their behalf just any any details on how you see that opportunity evolving.
As we've been doing that the pipeline's been growing and we've been working quite hard on that and behind the scenes. Um with a lot of focus on on various Aviation, um, opportunities. So that list is growing and we're starting to go through that quite aggressively. Now, Ellison was 1 of the, you know, the first ones that popped out. It was an obvious 1. It made a lot of sense, very strategic. Um, but there are several that are, um, obviously the bigger and larger. Uh, that allow for more diversification that we're working on right now can't get into any of the specifics. But um, they're they're definitely uh there's a good pipeline there and we're working through it and we're we're hopeful we'll have more to talk about as we get in uh, towards the end of the year or next year for sure.
Sure I can give you a little bit more clarity beyond what we provided there, but not a lot I mean.
The modification of the aircraft and the.
The product itself is a trade up products. So we did the work under contract for them.
Okay. No, that that that's a great. And maybe second question, I guess, just on the I guess, the firefighting, uh, opportunity here. I mean, you you've announced this, uh, you know, I guess the, the first of of 2 aircraft that you've modified. Um, I I just wondering if you can, maybe go in a little more detail on, you know how operating those aircraft might work other, I guess other companies out there that, you know, this, this product could be
At Voyager.
And there is an opportunity in what we're alluding to there.
Is quite good and we're excited about and we're hopeful we can we can we can deliver on as an opportunity for us to operate for them. So we would we would be flying the aircraft on their behalf and we have that capability in house at Voyager. They obviously needed some of that expertise to do flight testing and various things so.
Before that might be, you know, you know, potential contract for you to to operate the aircraft on their behalf. Just any any details on how you see that opportunity evolving,
We're well set up to to essentially engage operating those.
Those aircraft on their behalf.
Sure, I can, I can give you a little bit more clarity beyond what we provided there, but not a lot. I mean, um, you know, the, the modification of the aircraft and, and the, the product itself is a mraa product. So we did the work under contract, uh, for them. Um, at Voyager
Anywhere in the world that might make sense. So.
I can't give you any specifics on what that looks like because we're still working through all that with them, but we will have more to say about it is as time progresses here in the coming weeks.
Okay, that's great I'll pass along thanks very much.
Thank you.
Your next question comes from Tim James of TD Cowen. Please go ahead.
Thanks, very much good morning.
My first question are you seeing any specific opportunities coming to light as a result of our push to ramp up Canadian defense spending.
And there's an opportunity at what we're alluding to there. That's that's that's quite good and we're excited about and we're hopeful. We can we can then uh we can deliver on as an opportunity for us to operate for them. So we would we would be flying the aircraft on their behalf and we have that capability in House at forger. They obviously needed some of that expertise to do flight testing in various things. So, we're well set up to, um, to essentially engage, uh, you know, operating those aircraft on their behalf, um, anywhere in the world that might make sense. So, I can't give you any specifics on what that looks like because we're still working through all that with them. But uh, we'll have more to say about it as uh as time progresses here in the in the coming weeks.
Hi, Tim it's fallen.
Yeah, I mean, obviously you guys are reading, what we're putting out where we've been.
Okay, no, that that's great. I'll pass the line. Thanks very much.
Thank you.
Careful on how much emphasis we put on things because our focus is to make sure that we deliver not just talk about stuff, but there is a absolutely several opportunities that are starting to come together there, we're seeing more and more focus on this clearly we read everything you guys read in the papers on the on the.
Thanks very much, good morning. Um, my first question, are you seeing any specific opportunities? Uh, coming to light as a result of uh, of a push to ramp up Canadian Defence spending?
Defense spending opportunities.
<unk> been building their business in that area as we know that we have our office in Trenton and where.
We're running the mazer aircrafts on the on the support side so.
There is definitely a focus from our perspective to see growth there Allison ties in very well with that as well as farmers needs and having that ability to not only.
You will be able to do the engineering, but also be able to do the execution of the modifications that operate the aircrafts. So it's kind of.
Boy is here has been building their business in that area. As, as we know, we have a office in Trenton and we're
Having that capability.
From our perspective is very important so we're excited about opportunities that definitely we're going to be involved in and looking at and trying to secure in that area going forward definitely a growth area for us.
<unk> be looking at.
Great. Thank you my second question.
There were.
Just in terms of fleet in the covered aircrafts were five.
We're running the Maser UH aircraft on the support side. Um, so there's definitely a focus from our perspective to see growth there. Allison ties in very well with that as well. Um, as far as, you know, needs and having that ability to not only, um, you know, be able to do the engineering, but also be able to do the execution of, you know, the modifications and operate the aircraft. So it's kind of a.
Dash eight four hundreds I believe that were scheduled to come out of the fleet.
Or have been removed from the table in 2025 and those aircraft now.
Appear to be staying in the table until 2026.
I'm, just wondering what sort of.
Uh, having that capability, uh, from our perspective is very important. Um, so we're, we're we're excited about opportunities that, uh, definitely will going to be involved in and looking at and, and trying to secure in that area going forward. Definitely a growth area for us, uh, to to be looking at.
Precipitated that that change and I assume relates to sort of air Canada demands, but could you provide any color on that.
Brent.
Yes, Tim it's Gary here, its really just there and they're moving around its lead a little bit within.
The 80 aircraft and I think Thats really the key they extended those aircraft a little bit and Theres really don't change the <unk>.
And it has no impact as it on sort of.
Revenue EBITDA that.
Fine.
Those aircraft more this year than previously anticipated.
Yes, it wouldn't affect our EBITDA goes or third party leased aircraft.
Great. Thank you. Um, my second question. Um, there were um, just in terms of of Fleet and the covered aircraft, there were 5. Um, -8400, I believe that were scheduled to come out of the fleet, um, or have been removed from the table in 2025 and those aircraft now, uh, appear to be staying in the table until 2026. Um, I'm just wondering what sort of precipitated that that change and, um, I, I assume it relates to sort of Air, Canada demands, but could you provide any color on that? Um, front.
They are basically a flow through with air Canada. We earn are seeing fixed fee. So no change to any of our guidance numbers that we just have the aircraft around the world.
Is it if I can sorry, just to follow on on that you somewhat encouraged by the fact I assume that air Canada has said hey, let's.
Yeah, um, Tim and Gary here, it's really just Eric and moving around, it's sleet a little bit within uh, the 80 aircraft. And I think that's really the, the key, the extended, uh, those aircraft a little bit and there's really no change to the 80.
Fly fly five five additional aircraft more this year than previously expected I mean is that correct me if I'm wrong is that not sort of incurred.
And it, it has no impact. Does it on sort of, uh, Revenue ebit? Da that, uh, you know, flying flying those aircraft more this year than than previously anticipated.
Encouraging sign.
Hi, Tim it's fallen yes, absolutely lower look we're keen to operate and do as much as we can with air Canada is brown.
Yeah it wouldn't affect or if a dog those are third-party leased aircraft um you know they're they're basically a flow through with Air Canada. We earn our same fixed fee, so no change to any of our, our guidance numbers. If we just have the aircraft around the lock,
Proud.
For the quarter of them and in many ways.
We'd love to operate a few more aircrafts.
But we can't really speak for them as far as what that's going to look like in doing so we're here to support them and do as much as we can that jazz.
Is it if I can sorry, just to follow on on that. I mean, are you somewhat encouraged by the fact? I assume that Air Canada has said, hey, let's you know, fly fly 5, 5, 5 Edition aircraft more this year than previously expected. I mean, is that correct me if I'm wrong? Is that not a sort of a encouraging sign?
And that's kind of all I can give you a really.
No that's helpful. Okay. Thank you.
Thanks.
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Item. It's calling. Yes, the absolutely lawyer. Look, we're keen to to operate and do as much as we can with the Air Canada as as you know, we're proud.
Your next question comes from <unk> Gupta of Sculpsure Bank. Please go ahead.
Supporter of them and in many ways and uh, we'd love to operate a few more aircraft. Um,
Thanks and morning, everyone.
Just to follow up quick.
Yeah.
I don't think you guys disclosed in the filings shows there the transaction value or other revenue EBITDA contributions any sense to that I know it seems minor but like is it meaningful.
But you know, we can't really speak for them. As far as what the thing is going to look like and what we're doing. Um so we're here to support them and and do as much as we can, that jazz. Um, and that's kind of all I can give you really
No, that's helpful. Okay, thank you.
Thanks.
What it would be up but it would be to the bottom line.
As a reminder, if you wish to ask a question, please press star 1.
Yes, I think it's less than the purchase price was less than $5 million. It's free minor in the Grand scheme of things from that side, but the capability side as Colin alluded to the engineering talent.
Your next question comes from konark Gupta of Scopia Bank. Please go ahead.
That we've acquired is very significant and they have been involved with Voyager in the past the Oracle bolt with the maturity of project that we just talked about so the capability in that in the defense side is quite immeasurable.
Thanks and morning, everyone. Um, let me just follow up quick on Allison. Um, you know, I don't think you guys disclose the financials their the transaction value or other Revenue beta contributions. Um, any sense to that? I know it seems minor. But like, is it how meaningful, uh, what it would be or could it be, uh, to the bottom line?
They are profitable today, there's no question about that.
Profitable golar.
We're just not getting into various not getting into any disclosure around those numbers, but.
We're more excited about the upside than anything in the potential of what we can do with them and work with them and having that in house capability.
Right.
Two Voyager in their defense businesses pretty exciting.
And I think the only other comment I'll make on this is.
Yeah I mean I think it's uh it's less than you know the purchase price was less than 5 billion dollars. It's free minor in the grand scheme of things from that side. But the capability side is telling alluded to the engineering Talent uh, that we required is is very significant. And, you know, they've been involved with voyager in the past. They are also involved with the mrea project that we just talked about. So the capability in on on that in the defense side they have is is quite immeasurable.
There isn't many of these.
Types of engineering firms are left in Canada that have the type of capabilities that we're talking about.
There is lots of engineering firms, but they have very limited scope.
And the limited capabilities Allison is a broad scope capability engineering firm with everything from being able to build aircraft.
Break back to the manufacturing side of things all the way to all kinds of special mission stuff. So there's not really anything in Ellison scope that they can't do when it comes to aviation So thats the exciting part for us.
Great and that makes sense makes sense.
And and they're, they're profitable today. There's no question about that. Uh, they're definitely profitable going to our, um, it's, you know, we're just not getting into Gary's, not getting into any disclosure around those numbers. But, um, you know, we're more excited about the upside than anything in the potential of what we can do with them and work with them and having that in-house capability tied, uh, to Voyager. And their their defense business is, uh, pretty exciting. And I think the only other comment I'll make on this is, you know, there isn't many of these, um, types of engineering firms left in Canada, that have the type of capabilities that we're talking about.
I understand the philosophy, I guess, there a bit more.
When you pitch your.
<unk> services to two different verticals. These special mission on defense or whatever.
I mean with Alison help you to grow out as I don't know lets call it.
More capacity proposition to customers along with boys are obviously or would it be more like an expanded product offering a service offering to vessels.
Engineering firm with everything, from being able to build aircraft man. You know, like, right back to the manufacturing side of things. All the way to um, you know, all kinds of special missions stuff. So there's not really anything in Ellison scope that they they can't do when it comes to Aviation. So that's the exciting part for us.
Horizontally.
Spending with this acquisition, particularly expanding.
Yes, we are.
When we look at our team when we look across our organization the way I look at it anyways, we have expertise in all of these businesses it's quite deep.
Been very focused on all of our businesses, having long term deep expertise and whenever we go through any kind of customer we're always involving the team. So they would absolutely. If there is something thats involved engineering or project oriented that would involve modifications are changing.
All right. No makes sense. Makes sense. And um, do you understand the the philosophy? I guess there a bit more. Um, when you pitch your, you know, products and services to to different verticals, um, these special Mission or defense or whatever, um, I mean, would Ellison help you to go out as I don't know, we'll call it uh, more capacity proposition to customers along with voyager obviously. Or would it be more like an expanded product offering or service offering to customer, you know, like I mean, are you horizontally?
expanding with this acquisition or you vertically expanding
Aircraft, they would be definitely part of that.
From our perspective.
And they are integrated with us from a call perspective, we're always talking about new business opportunities. They will once we close they will be become part of that team.
Cross border insurer in jazz and.
And of course.
Okay, well, thanks for that and just a final one for me.
On the asset sales side. The three Q4 hundreds are coming up this year then this six next year.
Yeah, we are. Um, you know, when we look at our team, uh, when we look across our organization, the way I look at it, anyways is, you know, we have expertise in all of these businesses, it's quite deep. Um, we've been very focused on, you know, all of our businesses having long-term deep expertise. And whenever we go out to any kind of customer, um, we're always involving the team, um, so they would absolutely if there's something that's involved engineering or project or oriented that would involve modifications or changing
Besides six nine dash eights do you have any other assets you have identified.
Of course sale or part out or something.
Monetizing them.
Nothing at this time owner, but we continue to review our fleet at Voyager and what ought to make sure that it's all <unk>.
Aircraft. They would be definitely part of that, um, from from our perspective and they're, they're integrated with us from a call perspective. You know, we're always talking about new business opportunities, they will. Once we close, they will be become part of that team, um, across Bure and Jazz. And, and of course,
Or the activities, we have but nothing that would be at scenarios.
Okay. Thanks Kerry for that I appreciate the time thanks.
Thanks Warner.
There are no further questions at this time I will now turn the call over to Matt Lafayette. Please continue.
Okay, thanks for that. And just a final 1 for me, um, we're kind of work on the asset sales side, the 3 Q 400s, are coming up this year. Then the 6 next year, I think, um, besides these 9, uh, -8, do you have any other assets, you have identified, uh, either for sale or part out or something, uh, in terms of monetizing them,
Thank you everyone for joining today's call and please have a good day.
Ladies and gentlemen that concludes today's conference call. Thank you for your participation you may now disconnect.
Nothing at this time uh corner but we continue to review our Fleet at Voyager and and what ought to make sure that it's all uh you know needed for the activities we have but nothing that would be of significance.
Okay. Thanks very much for that. I appreciate the time, thanks.
thanks for
there are no further questions at this time, I will
To Matt LaPierre. Please continue.
Thank you, everyone for joining today's call. And please have a good day.
Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect