NAV CANADA announces fiscal 2026 third quarter financial results
OTTAWA, ON, July 10, 2026 /CNW/ – NAV CANADA today released its financial results for the three and nine months ended May 31, 2026.
In the third quarter of fiscal 2026, NAV CANADA maintained financial stability while continuing to advance the investments that support Canada’s air navigation system. The Company stayed focused on gradually rebuilding the balance of the Rate Stabilization Account (RSA) that helps reducing rate volatility over time. At the same time, it advanced efficiency measures to manage operating costs without compromising safety or operational performance. These efforts were accompanied by ongoing actions to enhance service delivery across the air navigation system.
Subsequent to quarter-end, NAV CANADA completed the divestiture of its investment in Aireon and received the initial tranche of proceeds. NAV CANADA continued its strategic relationship with Aireon through a new service agreement designed to further enhance the safety and efficiency benefits of space-based surveillance. Looking ahead, the Company will continue to monitor ongoing geopolitical uncertainty, which may influence traffic levels and operating costs depending on its duration and severity. While the operating environment continues to evolve, recent results reflect the resilience of both the aviation ecosystem and NAV CANADA’s operating model. The Company will manage proactively, maintaining a disciplined approach to costs, investments and RSA recovery, while ensuring reliable and efficient service delivery.
“These results reflect a deliberate balance: maintaining a strong and sustainable financial foundation and managing costs with discipline, while continuing to invest in the systems that will shape the future of air navigation in Canada,” said Mark Cooper, President and CEO. “Our focus stays where it belongs: delivering safe, efficient service to the customers and industry partners who rely on us, today and in the years ahead.”
In the third quarter of fiscal 2026, the Company saw a decrease in air traffic levels, as measured in weighted charging units(1), of 0.1% on a year over year basis. The Company’s revenue was $464 million for the third quarter of fiscal 2026, which is consistent with the same period in fiscal 2025.
The Company ended the quarter with strong liquidity reserves, including a cash balance of $393 million. This liquidity position provides flexibility to manage through periods of air traffic volatility and cost pressures, while continuing to fund critical operations and infrastructure investments. Negative free cash flow of $52 million was generated in the third quarter of fiscal 2026, compared to positive free cash flow of $26 million in the same period in fiscal 2025, reflecting increased investment in the Company’s infrastructure.
The rate stabilization account shortfall balance increased by $9 million in the third quarter of fiscal 2026. As of May 31, 2026, the shortfall balance was $98 million and is expected to be recovered from customers through future service charges.
Associated Links
The Company’s Financial Statements and Management’s Discussion and Analysis for the three and nine months ended May 31, 2026 can be found at:
Financial Statements
Management’s Discussion and Analysis
About NAV CANADA
NAV CANADA is a private, not-for-profit company, established in 1996, providing air traffic control, airport advisory services, weather briefings and aeronautical information services for more than 18 million square kilometres of Canadian domestic and international airspace.
The Company is internationally recognized for its safety record and technology innovation.
|
(1) |
Weighted charging units represent a traffic measure that reflects the number of billable flights, aircraft size and distance flown in Canadian airspace and is the basis for movement-based service charges, which comprise the vast majority of the Company’s revenue. |
|
(2) |
Free cash flow is a non-GAAP financial measure used by the Company to enhance the overall understanding of its financial and operating performance. Non-GAAP financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company defines free cash flow as cash generated from operations, less capital expenditures (net of government grants received), investments in Aireon Holdings LLC, equity related investments, principal payments of lease liabilities and income tax payments. Management places importance on this indicator as it assists in measuring the impact of its investment program on the Company’s financial resources and provides users with a more stable indication of the Company’s ability to meet its debt obligations and continue to invest in the air navigation system. |
This press release contains certain forward-looking statements that are subject to important risks and uncertainties. Actual results may differ materially from the results indicated in these statements for a number of reasons. NAV CANADA disclaims any intention to update any forward-looking statements.
SOURCE NAV CANADA
