Air Canada (OTCMKTS:ACDVF) Shares Gap Up After Earnings Beat

Air Canada (OTCMKTS:ACDVF)’s stock price gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $14.36, but opened at $15.37. Air Canada shares last traded at $15.31, with a volume of 3,199 shares changing hands.

The company reported $0.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.20 by $0.27. The company had revenue of $4.19 billion during the quarter, compared to analyst estimates of $5.56 billion. Air Canada had a negative net margin of 1.30% and a positive return on equity of 18.22%.

Key Stories Impacting Air Canada

Here are the key news stories impacting Air Canada this week:

• Positive Sentiment: Quarterly beat and return to profitability: Air Canada posted profitable Q4 results with EPS above consensus, reversing a year‑ago loss — a clear near‑term fundamental positive that supports stronger earnings momentum. Air Canada (ACDVF) Surpasses Q4 Earnings and Revenue Estimates
• Positive Sentiment: Stronger cash flow and full‑year results: Management reported solid operating cash flow, positive free cash flow and healthy adjusted EBITDA for 2025 — evidence the airline is generating real cash to pay down obligations or invest. Air Canada Reports Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Fleet modernization: Air Canada ordered eight Airbus A350‑1000s (with rights/options for eight more) — a long‑term positive for international capacity, fuel efficiency and product competitiveness on long‑haul routes. Air Canada Orders Eight A350-1000s, Supporting ‘Next Era’
• Neutral Sentiment: Delivery timing and optional nature of the order: Deliveries of the A350s are scheduled to begin in the second half of 2030 and additional aircraft are rights/options — supportive strategically but with limited near‑term financial impact. A New Era in Long-Haul: Air Canada to Acquire Airbus A350-1000 Widebody Aircraft
• Negative Sentiment: Revenue / expectation noise and guidance visibility: some reports and analyst commentary point to mixed revenue figures versus expectations and limited near‑term earnings visibility — a factor that can sustain volatility and cap upside. Air Canada Swings to Profit, Logs Higher Sales in Fourth Quarter
• Negative Sentiment: Leverage and margins remain a concern: balance‑sheet metrics (high debt levels and still‑thin net margins) keep investors cautious despite cash‑flow improvement; analysts (e.g., Jefferies) have stuck with conservative ratings/targets. Air Canada: Solid Near-Term Execution but Limited Earnings Visibility Supports Hold Rating

Wall Street Analyst Weigh In

A number of research analysts have commented on the company. Scotiabank restated an “outperform” rating on shares of Air Canada in a research note on Wednesday, January 21st. Zacks Research raised Air Canada from a “strong sell” rating to a “hold” rating in a research report on Tuesday, January 27th. Finally, UBS Group upgraded Air Canada to a “hold” rating in a report on Tuesday, November 18th. Two research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Air Canada currently has a consensus rating of “Hold”.

Air Canada Price Performance

The business has a fifty day moving average of $14.14 and a 200 day moving average of $13.72. The company has a debt-to-equity ratio of 3.99, a current ratio of 0.59 and a quick ratio of 0.56. The stock has a market cap of $4.37 billion, a PE ratio of -26.61 and a beta of 1.44.

Air Canada Company Profile

Air Canada is the largest airline in Canada and one of the leading carriers in North America. Founded in 1937 as Trans-Canada Air Lines and rebranded as Air Canada in 1965, the company operates scheduled passenger and cargo services on six continents. The airline maintains membership in the Star Alliance network, offering seamless connections and coordinated loyalty benefits to travelers worldwide.

Through its mainline operations and subsidiaries—including Air Canada Rouge, Air Canada Cargo and Air Canada Vacations—the company provides a broad range of services.