Cargojet (TSX:CJT) Is Up 6.4% After Expanding Long-Term DHL Partnership and Reporting Q2 Gains – Has The Bull Case Changed?

• Earlier this month, Cargojet announced it has renewed and expanded its long-term air cargo partnership with DHL, extending their agreement until at least March 31, 2033, with two additional two-year renewal options potentially extending it until 2037; Cargojet will continue providing a full suite of air transport services to support DHL’s global logistics, and the arrangement includes significant changes to equity warrants and business volume commitments.
• Alongside this development, Cargojet released its second quarter 2025 results, revealing year-over-year revenue increases and a substantial decrease in quarterly net loss, which may reflect improved operational efficiency and the impact of stable long-term client agreements.
• We’ll explore how the expanded DHL partnership, with its multi-year revenue guarantees and growth incentives, influences Cargojet’s investment narrative.

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Cargojet Investment Narrative Recap

To be a Cargojet shareholder, you need to believe that its air-cargo partnerships, especially with DHL, can offset competitive threats and shifts in global logistics. The expansion and renewal of the DHL agreement provide longer-term revenue visibility but do not materially change the near-term catalyst of supply chain decoupling or the central risk of softened ACMI demand, particularly on international routes.

Of all the recent developments, the DHL partnership renewal stands out. This agreement secures minimum business volumes for years and aligns incentives through new equity warrants, reinforcing vital revenue streams that underpin both Cargojet’s earnings stability and future growth prospects connected to supply chain trends.

Yet, against these revenue guarantees, investors should be aware that competition from direct-to-consumer e-commerce channels could still ...

Read the full narrative on Cargojet (it's free!)

Cargojet's outlook projects CA$1.2 billion in revenue and CA$90.1 million in earnings by 2028. This requires a 4.2% annual revenue growth rate and a CA$33.8 million decrease in earnings from the current CA$123.9 million.

Uncover how Cargojet's forecasts yield a CA$141.69 fair value, a 35% upside to its current price.

Exploring Other Perspectives

Fair value estimates from 5 Simply Wall St Community members span from CA$56.31 to CA$141.69. While revenue stability from renewed client agreements appeals to many, opinions still differ widely on Cargojet’s outlook, discover how others see its future.

Explore 5 other fair value estimates on Cargojet - why the stock might be worth 46% less than the current price!

Build Your Own Cargojet Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Cargojet research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Cargojet research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Cargojet's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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