Will Cargojet’s (TSX:CJT) Global Move and CEO Transition Reshape Its Long-Term Growth Direction?

• Cargojet Inc. recently announced the upcoming CEO transition, with Pauline Dhillon assuming leadership in January 2026, alongside the launch of a direct weekly air cargo service connecting Canada's hubs with Liege Airport in Europe as of November 1, 2025.
• This marks a pivotal moment as the company pairs leadership continuity with targeted global expansion, underscoring its pursuit of international growth opportunities amid evolving market conditions.
• We’ll explore how Cargojet’s CEO transition and direct Europe service could influence its long-term growth strategy and investment narrative.

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Cargojet Investment Narrative Recap

To invest in Cargojet, one must believe in its ability to leverage long-term contracts and an expanding international network for durable, profitable growth. The recent CEO transition and European route launch signal leadership stability and geographic expansion, but current results show continued reliance on major customers as the key short-term driver, with concentration risk remaining unchanged. The biggest risk still comes from potential shifts in volumes or terms with major partners, as seen in ongoing earnings fluctuations and customer concentration exposure.

Among recent developments, the renewed DHL contract until 2033, with expanded service terms, stands out as especially relevant, enhancing revenue stability and underpinning Cargojet’s network growth ambitions. While the direct Liege service opens new long-term routes, retention and growth of anchor customers like DHL remain the most critical near-term catalyst for both margin resilience and volume recovery.

On the other hand, investors should pay close attention to the ongoing risk from overreliance on a small group of customers, especially if those relationships...

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

Cargojet is projected to reach CA$1.1 billion in revenue and CA$111.6 million in earnings by 2028. This outlook is based on analysts' assumptions of 3.7% annual revenue growth, but a decline in earnings of CA$34.1 million from the current CA$145.7 million.

Uncover how Cargojet's forecasts yield a CA$120.50 fair value, a 74% upside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community span CA$56.31 to CA$132.99, capturing a wide spectrum of expectations. While contract renewals with key clients strengthen revenue visibility, maintaining these partnerships remains pivotal for the company’s future path.

Explore 6 other fair value estimates on Cargojet - why the stock might be worth 19% 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 2 key rewards and 4 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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