Chorus Aviation Signals Strong Confidence with New Share Buyback Plan

HALIFAX, NS – February 12, 2026 – Chorus Aviation Inc. (TSX: CHR) today signaled a strong vote of confidence in its financial health and strategic direction, announcing it has received approval from the Toronto Stock Exchange to renew its share buyback program. The move allows the company to repurchase nearly two million of its own shares, a classic maneuver to enhance shareholder value and broadcast management's belief that its stock is undervalued on the open market.

This latest Normal Course Issuer Bid (NCIB) comes as Chorus executes a significant strategic pivot, shedding major assets to strengthen its balance sheet while reinvesting in higher-margin, diversified aviation services. The buyback is not just a financial transaction but a clear statement about the company's future.

A Confident Move in Capital Allocation

Under the terms of the renewed bid, Chorus is authorized to purchase for cancellation up to 1,963,003 of its Class A and Class B shares. This figure represents 10% of the company's public float as of early February 2026, a substantial portion that can have a meaningful impact on per-share metrics. By reducing the number of shares in circulation, such programs can boost earnings per share (EPS), often making the stock more attractive to investors.

The program is set to commence on February 18, 2026, and will run for one year, concluding by February 17, 2027, or sooner if the maximum number of shares is acquired. Purchases will be made on the open market through the TSX and alternative trading systems at prevailing market prices.

In a statement, the company confirmed this view, noting, "The directors and management of Chorus believe that the purchase of Shares for cancellation during the period of the bid may be an appropriate and desirable use of Chorus' funds that is in the best interests of Chorus and beneficial to its shareholders." The company plans to be opportunistic, factoring in share price and other market conditions.

To ensure a consistent and orderly process, Chorus will establish an automatic securities purchase plan with its broker. This mechanism allows the company to continue repurchasing shares even during self-imposed trading blackout periods, subject to pre-defined parameters, demonstrating a structured and long-term commitment to the program.

A Pattern of Rewarding Shareholders

This announcement is not an isolated event but the continuation of a multi-year strategy focused on returning capital to shareholders. The new NCIB directly follows a previous bid that expired in November 2025. Under that program, Chorus repurchased 1,352,709 post-consolidation shares at a weighted average price of $20.61 each. The company has demonstrated a consistent appetite for its own stock, having also executed a Substantial Issuer Bid in September 2025 to acquire up to $50 million in shares.

These buybacks are part of a broader commitment to shareholder returns that has gained momentum. In 2025, Chorus returned over $89 million to its investors through a combination of dividends and share repurchases. Underscoring this commitment, the company recently announced a 38% increase to its quarterly dividend, another powerful signal of financial strength and confidence in future cash flows. This dual approach—combining share buybacks with dividend growth—is often viewed by investors as a hallmark of a mature and financially disciplined company.

Underpinned by Financial Strength and Strategic Shifts

The ability to fund such a significant capital return program stems directly from a dramatic overhaul of the company's balance sheet and business strategy. A pivotal moment was the December 2024 sale of its Regional Aircraft Leasing (RAL) business, which generated net proceeds of over US$600 million. This transformative deal allowed Chorus to aggressively pay down debt, causing its leverage ratio to plummet from 3.3 at the end of 2023 to a much healthier 1.5 by late 2025.

This strategic divestiture was a key part of the "asset-light" vision championed by President and CEO Colin Copp, who took the helm in early 2023. By reducing its exposure to capital-intensive aircraft ownership, Chorus unlocked significant capital and de-risked its financial profile.

The results are evident in the company's recent financial performance. Chorus reported robust free cash flow of $135.3 million for the full year 2025, providing ample fuel for both shareholder returns and strategic investments. Net income from continuing operations also saw a dramatic year-over-year increase, confirming the positive impact of the new strategy.

Diversifying Beyond the Tarmac

The renewed buyback program is not happening in a vacuum. It coincides with a clear and aggressive push to diversify Chorus's revenue streams beyond its foundational—and stable—contract flying business, Jazz Aviation, which operates under the Air Canada Express brand. The company is actively building a multifaceted aerospace services enterprise focused on higher-margin activities.

Evidence of this strategy came in a parallel announcement today, with Chorus revealing an agreement to acquire Kadex Aero Supply Ltd. for approximately $50 million. Kadex is a distributor of aircraft parts and provides repair and overhaul services. This acquisition fits squarely into Chorus's goal of strengthening its aviation and defense platforms and capturing more value across the aircraft lifecycle.

This move complements the ongoing growth at Voyageur Aviation, another Chorus subsidiary. Voyageur is increasingly focused on high-demand areas such as specialty MRO, parts sales, and defense-related contract flying, which offer better margins than traditional passenger transport. Together, these initiatives are creating a more resilient and profitable business model.

While Chorus management is clearly bullish on the company's prospects, the broader market remains cautiously optimistic. Analyst ratings are mixed, ranging from "Hold" to "Buy," with price targets suggesting potential upside but also acknowledging the inherent risks of the competitive aviation sector. Ultimately, the success of this shareholder-friendly capital allocation strategy will hinge on Chorus's ability to continue executing its strategic pivot, proving that it can generate sustainable growth and profitability from its newly diversified portfolio of aerospace services.