Canada Cartage-Beating Q1’26 expectations as risk on run-rate estimates reduce-05/19/2026

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Canada Cartage-Beating Q1’26 expectations as risk on run-rate estimates reduce-05/19/2026

Canada Cartage

CREDIT NEWSFLASH | 19 MAY 2026

Beating Q1’26 expectations as risk on run-rate estimates reduce

Canada Cartage reported a strong Q1’26 EBITDA of CAD 17m vs CAD 15m estimated and CAD 12m in Q1’25. Net leverage

came in at 4.9x vs. 5.0x as of 2025. Management highlighted improving market conditions across both Brokerage and

Dedicated, with customers in Dedicated becoming increasingly receptive to rate increases and spot rates within brokerage

seeing mid-teens increases y/y. Overall, the report supports and reduce the risk on the run rate estimates presented in

connection with the primary issuance. We find the bonds attractive, offering ~10% yield as an improving market environment

and execution of the contract backlog are expected to reduce credit risk further over the coming year.

• Operating revenues came in at CAD 332m vs PASe at CAD 326m and EBITDA came in at CAD 17m vs PASe of CAD 15m. Segment split

was not provided, but management highlights the US brokerage business is seeing margin improvement alongside increasing spot rates,

with margins continuing to trend positively. This likely contributed to the EBITDA beat, although estimates also were somewhat

conservative on opex assumptions. Overall, the quarter was strong, with both revenue and EBITDA ahead of expectations.

• Management commented constructively on market conditions across both Brokerage and Dedicated, supported by improving North

American transportation market dynamics. Excess capacity added during the pandemic continues to exit the market, while brokerage

spot rates appear to have bottomed in 2025 and increased by mid-teens percentages y-o-y in Q1’26. Within Dedicated, management