Announces 38% Increase in Quarterly Dividend, Up to $100 million in Planned Share Buybacks Over Four Years and Agreement to Acquire Kadex Aero Supply¹

• Fourth quarter net income from continuing operations² of $16.7 million, a quarter-over-quarter increase of $66.1 million.
• Full year net income from continuing operations of $78.7 million, a year-over-year increase of $94.5 million.
• Purchased and cancelled 3,759,929 Common Shares, approximately 14% of the December 31, 2024 outstanding Common Shares, for $85.2 million.
• Increased quarterly dividends by 38% bringing it to $0.11 per Common Share, up from $0.08 when initiated in June 2025.
• Announced up to $100 million in planned Common Share buybacks over the next four years.
• Full year Adjusted Earnings available to Common Shareholders³ of $58.6 million, a year-over-year increase of $32.0 million.
• Full year Adjusted Earnings available to Common Shareholders of $2.27 per Common Share, basic, for the year compared to $0.97 for 2024.
• Full year Adjusted EBITDA of $206.9 million, a year-over-year decrease of $2.2 million.
• Full year Free Cash Flow of $135.3 million, a year-over-year increase of $16.5 million.
• Announced agreement to acquire Kadex Aero Supply Limited ("Kadex"), a distributor of aircraft parts and supplies, for a purchase price of approximately $50.0 million.

HALIFAX, NS, Feb. 12, 2026 /CNW/ -(EQNX::nobreakspace)Chorus Aviation Inc. ('Chorus') (TSX: CHR) today announced its fourth quarter 2025 financial results.

"Today's announcements mark exciting milestones for Chorus, reflecting our execution against our strategy. Our financial results demonstrate strong and stable performance throughout the quarter and year," said Colin Copp, President and Chief Executive Officer, Chorus. "With our 38% increase in our quarterly dividend, up to $100 million in planned share buybacks over the next four years, and our agreement to acquire Kadex, we are demonstrating our focus on accelerating growth as well as enhancing shareholder returns."

"Our decision to increase our quarterly dividend to $0.11 per common share reflects our strong Free Cash Flow as well as confidence in the longâ?(EQNX::leftsinglequotation)term trajectory of our business. At the same time, our planned share repurchases underscore our commitment to shareholder value," said Mr. Copp. "Since the beginning of 2025 alone, we have returned over $89 million to shareholders through our dividends and share repurchases."

"The acquisition of Kadex demonstrates Chorus' ability to execute against our growth strategy of building higherâ?(EQNX::leftsinglequotation)margin platforms and enhancing our overall cash flows. Kadex will also further strengthen our overall aviation, aerospace and defence platforms."

Q4 Financial Highlights:

• Net income of $16.7 million compared to a loss of $6.6 million for Q4 2024.
• Net income from continuing operations of $16.7 million compared to a net loss of $49.4 million for Q4 2024 primarily due to a positive change in unrealized foreign exchange gains of $28.2 million and the absence of the costs recognized in 2024 related to the redemption of the Preferred Shares of $28.0 million and a 2024 aircraft impairment of $10.5 million.
• Adjusted Earnings available to Common Shareholders of $13.8 million compared to $9.3 million for Q4 2024, primarily due to lower net interest expense partially offset by lower Adjusted EBITDA.
• Adjusted Earnings available to Common Shareholders of $0.57 per Common Share, basic, compared to $0.34 for Q4 2024.
• Adjusted EBITDA of $47.1 million compared to $51.0 million for Q4 2024.
• Free Cash Flow of $27.0 million compared to $27.5 million for Q4 2024.
• Free Cash Flow per Common Share, basic of $1.10 compared to $1.01 for Q4 2024.
• Leverage Ratio of 1.7 compared to 1.4 at December 31, 2024, due to additional cash held at December 31, 2024 as a result of a $58.9 million prepayment of revenue relating to January 2025.

Annual Highlights:

• Net income of $78.7 million compared to a net loss of $156.4 million for 2024.
• Net income from continuing operations of $78.7 million compared to a net loss of $15.8 million for 2024 primarily due to a change in unrealized foreign exchange gains of $43.7 million and the absence of the costs recognized in 2024 related to the redemption of the Preferred Shares of $28.0 million and the 2024 aircraft impairment of $10.5 million.
• Adjusted Earnings available to Common Shareholders of $58.6 million compared to $26.6 million for 2024, primarily due to lower net interest expense.
• Adjusted Earnings available to Common Shareholders of $2.27 per Common Share, basic, compared to $0.97 for 2024.
• Adjusted EBITDA of $206.9 million compared to $209.0 million for 2024.
• Free Cash Flow of $135.3 million compared to $118.8 million for 2024.
• Free Cash Flow per Common Share, basic of $5.25 compared to $4.34 for 2024.

Dividend Declaration

Chorus has announced the declaration of a cash dividend of(EQNX::nobreakspace)$0.11 per Class A Variable Voting Share and Class B Voting Share payable on March 31, 2026 to Shareholders of record at the close of business on March 13, 2026. This declared dividend represents a 38% increase from the prior quarterly dividend.

This dividend is an eligible dividend in Canada. It may also be considered a qualified dividend from a U.S. tax perspective; however, shareholders should consult their tax advisor to confirm the treatment of the dividend under U.S. tax laws.

Consolidated Financial Analysis

This section provides detailed information and analysis about Chorus' performance from continuing operations for the three months and year ended December(EQNX::nobreakspace)31, 2025 compared to the three months and year ended December(EQNX::nobreakspace)31, 2024.

Fourth Quarter Summary

In the fourth quarter of 2025, Chorus reported Adjusted EBITDA from continuing operations of $47.1 million, a decrease(EQNX::nobreakspace)of $3.9 million compared to the fourth quarter of 2024 primarily due to:

• a decrease in aircraft leasing revenue under the CPA of $3.0 million primarily due to expected changes in lease rates on certain aircraft;
• a decrease in Voyageur's parts sales, contract flying and MRO activity; and
• a decrease in capitalization of major maintenance overhauls on owned aircraft of $3.5 million; partially offset by
• a decrease in general administrative expenses primarily attributable to lower overhead costs; and
• a decrease in stock-based compensation of $1.4 million due to the recognition of the immediate vesting of certain restricted share units in Q2 2024 related to the sale of the RAL business and a decrease in the Common Share price offset by the change in fair value of the Total Return Swap.

Adjusted Net Income from continuing operations was $13.8 million for the quarter, an increase of $4.5 million compared to the fourth quarter of 2024 primarily due to:

• a decrease in net interest costs of $6.6 million primarily related to the repayment of the Series A Debentures and the Series B Debentures and the partial repurchase of the Series C Debentures in the first quarter of 2025;
• a decrease in depreciation expense of $1.0 million primarily attributable to a change in depreciation estimates on certain aircraft; and
• a decrease of $0.8 million in income tax expense; partially offset by
• a $3.9 million decrease in Adjusted EBITDA as previously described.

Net income from continuing operations was $16.7 million, an increase of $66.1 million compared to the fourth quarter of 2024 primarily due to:

• the previously noted increase in Adjusted Net Income of $4.5 million;
• a realized foreign exchange loss of $31.3 million recognized in 2024 on the settlement of Preferred Shares;
• a positive change in net unrealized foreign exchange of $28.2 million;
• impairment provisions recognized in 2024 of $10.5 million primarily related to the part-out of certain of Voyageur's non-operational owned aircraft; and
• interest accretion recognized in 2024 on Preferred Shares of $10.4 million; partially offset by
• a realized foreign exchange gain recognized in 2024 of $13.7 million related to US dollar denominated cash held between the dates December 6, 2024 and December 31, 2024 being the dates Chorus received the net proceeds from the Transaction and the redemption of the Preferred Shares, respectively; and
• an increase in income tax, including tax on adjusted items of $5.1 million primarily related to a $3.1 million non-capital loss carryback adjustment.

Annual Summary

Chorus reported Adjusted EBITDA from continuing operations of $206.9 million for the year ended December 31, 2025, a decrease of $2.2 million compared to the same prior year period primarily due to:

• a decrease in aircraft leasing revenue under the CPA of $9.6 million primarily due to expected changes in lease rates on certain aircraft partially offset by a higher US dollar exchange rate; and
• a decrease in capitalization of major maintenance overhauls on owned aircraft of $6.8 million; partially offset by
• a decrease in general administrative expenses primarily attributable to lower overhead costs;
• a decrease in stock-based compensation of $4.1 million due to the recognition of the immediate vesting of certain restricted share units in Q2 2024 related to the sale of the RAL business and a decrease in the Common Share price offset by the change in fair value of the Total Return Swap; and
• an increase in Voyageur's parts sales, contract flying and MRO activity.

Adjusted Net Income from continuing operations of $58.6 million, an increase of $14.2 million compared to the same prior year period primarily due to:

• a decrease in net interest costs of $23.1 million primarily related to the repayment of the Series A Debentures and the Series B Debentures and the partial repurchase of the Series C Debentures in the first quarter of 2025; partially offset by
• a $2.2 million decrease in Adjusted EBITDA as previously described;
• an increase of $4.8 million in income tax expense primarily due to the increase in EBT, adjusted to remove non-taxable unrealized foreign exchange gains and certain non-deductible expenses;
• an increase in depreciation expense of $1.4 million primarily attributable to capital expenditures offset by a change in depreciation estimates on certain aircraft; and
• a negative change in foreign exchange of $0.5 million.

Net income from continuing operations of $78.7 million, an increase of $94.5 million compared to the same prior year period primarily due to:

• the previously noted increase in Adjusted Net Income of $14.2 million;
• a positive change in net unrealized foreign exchange of $43.7 million;
• a realized foreign exchange loss of $31.3 million recognized in 2024 on the settlement of Preferred Shares;
• impairment provisions recognized in 2024 of $10.5 million primarily related to the part-out of certain of Voyageur's non-operational owned aircraft; and
• interest accretion on Preferred Shares recognized in 2024 of $10.4 million; partially offset by
• a realized foreign exchange gain recognized in 2024 of $13.7 million related to US dollar denominated cash held between the dates December 6, 2024 and December 31, 2024 being the dates Chorus received the net proceeds from the Transaction and the redemption of the Preferred Shares, respectively; and
• a decrease in income tax recovery, including tax on adjusted items of $2.0 million.

Adjusted Earnings available to Common Shareholders from continuing operations was $58.6 million, an increase of $32.0 million compared to the same prior year period primarily due to:

• the previously noted increase in Adjusted Net Income of $14.2 million; and
• the elimination of Preferred Share dividends of $17.8 million due to the redemption of the Preferred Shares.

Outlook

The discussion that follows includes forward-looking information within the meaning of applicable securities laws. Such outlook is based on estimates and assumptions made by management that are discussed under the heading "Forward-Looking Information" and specifically stated in the footnotes in the following table. Chorus' outlook is provided for the purpose of providing information about current expectations for 2026. This information may not be appropriate for other purposes.

The table below presents Chorus' outlook for 2026, including projections for Adjusted EBITDA, Free Cash Flow, repayment of Amortizing Term Loans, Free Cash Flow after repayment of Amortizing Term Loans and key metrics related to aircraft leasing under the CPA. The CPA provides a Fixed Margin to Jazz regardless of flying levels; therefore, any variations in flying are not expected to have any impact on Jazz's earnings. In addition, Jazz receives compensation for aircraft leased under the CPA that generates predictable Free Cash Flows. Jazz aircraft have amortizing debt that will be fully paid-off at the end of the original lease term under the CPA. At the end of each lease, Jazz will either extend the lease, sell or part-out each aircraft. Subsequent aircraft leases will continue to produce predictable Free Cash Flow at lower rates, however these aircraft will be unencumbered.

Portfolio of Aircraft Leasing under the CPA(EQNX::nobreakspace)

• Current fleet of 47 wholly-owned aircraft and five spare engines
• Current net book value of $720.5 million
• Future contracted lease revenue US $300.6 million^1,2
• Current weighted average fleet age of 9.4 years³
• Current weighted average remaining lease term of 4.0 years³
• Long-term debt of $261.3 million (US $190.6 million)
• 100% of debt has a fixed rate of interest
• Current weighted average cost of borrowing of 3.29%

Jazz has started the initial phase of an extensive cabin refurbishment program for aircraft operated under the Air Canada Express brand. This refurbishment program includes upgraded Wi-Fi connectivity, larger overhead storage bins, new lightweight seats, in-seat power supply, and refreshed cabin interiors for the E-175s and CRJ900s. In addition, a select number of Dash 8-400s will receive Wi-Fi connectivity for Toronto Billy Bishop service along with Jazz's previous announcement in May 2024 that its Dash 8-400 fleet would receive new lightweight seats as part of an emissions reduction initiative. All 39 owned aircraft leased under the CPA after 2026 are included in this passenger cabin refurbishment program with all costs associated with the program to be paid by Air Canada.

Capital Expenditures

Capital expenditures in 2026 are expected to be as follows:

Use of Defined Terms

Capitalized terms used but not defined in this news release have the meanings given to them in management's discussion and analysis of results of operations and financial condition dated May 6, 2025 (the "MD&A"), which is available on Chorus' website (www.chorusaviation.com) and under Chorus' profile on SEDAR+ (www.sedarplus.ca).(EQNX::nobreakspace) In this news release, the term "shareholders" refers only to holders of Common Shares.

Investor Conference Call / Audio Webcast

Chorus will hold an analyst call at 9:00 AM ET on Friday, February 13, 2026, to discuss the fourth quarter and year-end 2025 financial results. The call may be accessed by dialing 1-888-699-1199. The call will be simultaneously audio webcast via: https://app.webinar.net/LV26kaxqB0n.

This is a listen-in only audio webcast.(EQNX::nobreakspace)

The conference call webcast will be archived on Chorus' website at www.chorusaviation.com(EQNX::nobreakspace)under (EQNX::nobreakspace)Investors > Reports.(EQNX::nobreakspace) A playback of the call can also be accessed until midnight ET, February 20, 2026, by dialing toll-free 1-888-660-6345 and using passcode 38667(EQNX::nobreakspace)# (pound key).

NON-GAAP FINANCIAL MEASURES

This news release references several non-GAAP financial measures and ratios to supplement the analysis of Chorus' results.(EQNX::nobreakspace)Chorus uses these non-GAAP measures to evaluate and assess performance. These non-GAAP measures are generally numerical measures of Chorus' financial performance, financial position, or cash flows, that include or exclude amounts from the most comparable GAAP measure. As such, these measures are not recognized for financial statement presentation under GAAP, do not have standardized meanings, may not be comparable to similar measures presented by other entities, and should not be considered a substitute for or superior to GAAP results. For further information on non-GAAP measures used in this news release, please refer to Section 17 (Non-GAAP Financial Measures) of the MD&A, which is available on Chorus' website (www.chorusaviation.com) and under Chorus' profile on SEDAR+ (www.sedarplus.ca). Reconciliations of non-GAAP measures to their nearest GAAP measures are provided below.

Adjusted Net Income, Adjusted EBT, Adjusted EBITDA

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