Thank you, operator. Hello, and thank you for joining us today.

With me today from Chorus are Colin L. Copp, president and chief executive officer and Gary James Osborne, chief financial officer.

We will begin today's call with a brief summary of the results followed by questions from the analyst community. As there may be some forward looking discussion during this call, I ask that you refer to the caution regarding forward looking statements and information found in our MD&A.

This pertains specifically to the results and operations of Chorus Aviation Inc, for the period ended 06/30/2026. As well as the outlook section and other sections of our MD&A where such statements appear.

Finally, some of the following discussion involves non GAAP financial measures including references to adjusted net income, adjusted EBT, adjusted EBITDA, leverage ratio, and free cash flow. Please refer to our MD&A for further information relating to the use of such non GAAP measures.

I will now turn the call over to Colin L. Copp.

Good morning, everyone, and thank you for joining us today. I am pleased to report that Chorus delivered strong second quarter financial results and continues to make meaningful progress towards our strategic growth objectives.

We are today a trusted Canadian partner with a global reach, focused on growing our aviation, aerospace, and defense platform to create sustainable long term value for our shareholders. We continue to execute on our capital allocation plan.

Generating $118 million in free cash flow and proceeds on aircraft sales in the first half of the year. Including $72.6 million in the second quarter.

This has allowed us to maintain a strong balance sheet with leverage at 1.5x and liquidity of $204 million that provides financial flexibility in our long term capital allocation plan to invest in growth opportunities while continuing to return capital to our shareholders. A key milestone in our growth and diversification during the quarter was the completion of our acquisition of Kadex Aero Supply, on April 1st.

Since closing, the integration has progressed smoothly, and the business continues to perform well. During the quarter, KDEX contributed revenue of $16.4 million and net income of $1.2 million.

Including 500 thousand of amortization expense on acquisition related intangible assets. Which tracks ahead of our initial expectations.

Kadex has expanded our aviation and aerospace platform, enhancing the quality and diversification of our earnings and strengthening the resilience of our cash flow profile. Our approach to capital allocation remains unchanged.

During the quarter, we repurchased shares under our normal course issuer bid. While also maintaining our quarterly dividend.

Following the renewal of the NCIB earlier this year, we repurchased approximately $14.8 million of shares during the second quarter bringing the total repurchases to approximately $20 million year to date. And since 2022, we have returned approximately $144 million to shareholders through our NCIB and 2 substantial issuer bids.

We have executed as planned on the monetization of the 9 Dash 8-400 aircraft previously announced. 7 aircraft are now closed and being delivered.

Which include 4 aircraft transactions completed during the second quarter. The remaining 2 aircraft are planned to close by the fourth quarter of 26.

Generating estimated net proceeds of approximately $414.4 million. Turning to the businesses.

Our subsidiaries have performed very well this quarter. And continue to make inroads on several key strategic initiatives.

The breadth of activity across our company highlights the unique capabilities we are building at Chorus. Douglas and the team at Jazz have been working hard on the Air Canada Express operation at Billy Bishop Toronto City Airport with the launch of service to Chicago, Washington, Dallas, and Boston during the quarter.

And in June, Jazz successfully completed its IOSA renewal audit the global benchmark for airline safety management. And they look forward to their renewal.

I am also pleased to report that Jazz recently reached a tentative agreement with its Canadian Airline Dispatchers Association representing the company's 56 flight dispatchers. At Voyager, Cory and the team continue to drive several strategic growth initiatives positioning the business to capitalize on Canada's growing defense and aerospace requirements, Progress continues on the Dash 8-300 Fireswift aerial firefighting program.

With the 1st aircraft going through final certification and a 2nd expected to be completed next quarter. Voyager has also expanded its aftermarket parts business by adding ATR, and Boeing inventory and recorded its first sales of Boeing 757 parts during the quarter, adding 2 new platforms.

to the Avparts market offerings. As well, their domestic charter operations remain strong, supporting wildfire response efforts across Canada and Voyager has completed the sale of 2 Dash 8-400 aircraft.

Looking ahead, Voyager recently announced the purchase of a flex rotor uncrewed aircraft system from Airbus becoming the first Canadian customer and operator of the platform. This represents an important milestone in Voyager's intelligence, surveillance, and reconnaissance capability and expansion into the uncrewed aircraft system market.

In addition, Voyager and Airbus signed an MOU to identify and pursue opportunities to collaborate on the delivery of flex rotor remotely piloted aircraft system services for commercial and government customers across Canada. We look forward to providing further updates as this exciting new capability develops.

Voyager also announced a new engagement with 49North, an NDA space company focused on delivering advanced ISR solutions for Canadian government defense, and security customers. Combining Voyager's special mission operations, maintenance, and training with 49North's mission systems and data analytics capabilities, positions both organizations to support Canada's growing requirements in sovereignty, security, and defense.

At KDEX, John and the team completed a 10 thousand-square-foot warehouse expansion at Peterborough Airport, significantly increasing capacity and consolidating inventory shipping and receiving operations into a single location. The expansion doubles storage capacity improves fulfillment speed for its growing demand, supports greater inventory levels in Canada, and enhances service for customers.

The investment positions KDEX well for its next phase of growth, while further strengthening customer service and operational efficiency. For Falko, Stéphane and the team at Elisen, work continues to progress on the Government of Quebec Medevac program.

Design review phase has been successfully completed. The aircraft is now being prepared for modifications.

The project remains on schedule. for completion by the end of the fourth quarter and continues to be an excellent example of the value that can be created through collaboration across the Chorus Group of companies.

With Elisen and Voyager working together to deliver a specialized solution for the customer. At Cygnet, Lynne and the team continued delivering high quality flight training and strengthening the pilot development pathways.

The second destination porter cohort and the 12th Jazz Approach cohort will begin shortly. The innovative jazz approach program is another strong example of cross-Chorus collaboration in action.

Jazz plays a critical role in the Canadian pilot career pathway through its flow agreement with Air Canada. Which has enabled more than 1.7 thousand pilots to transition from Jazz.

To Air Canada. Over the past 10 years.

Programs like Jazz Approach are essential to sustaining a pipeline of highly skilled career ready pilots for Jazz and supporting the long term health of the Canadian aviation industry. Cygnet is also advancing plans for its new flight training base in North Bay.

Which will support expanded training capacity and deeper collaboration with Canadore College. Across the organization, our businesses are executing very well.

Delivering strong operational and financial performance. While advancing strategic initiatives that support long term value creation.

We remain committed to disciplined capital allocation in the pursuit of selective accretive acquisition opportunities that align with our Chorus Group of companies and investment criteria. We are encouraged by the opportunities we are seeing and continue to evaluate transactions that can strengthen and diversify our aviation, aerospace and defense business while generating attractive returns for our shareholders.

Through this strategy, we are building a stronger and more diversified company and advancing our vision of being Canada's trusted partner and global leader in aviation, aerospace, and defense. I will now turn it over to Gary to walk you through the financials.

Thank you, Colin, and good morning. We are pleased with our second quarter results.

The quarter really shows the strength of the platform we are building with solid earnings, strong free cash flow, disciplined capital allocation, and good progress on growth. In particular, Voyager and Kadex helped offset the contractual step downs in the CPA, with KDEX tracking ahead of our initial expectations.

We continue to return capital to shareholders through dividends and share repurchases, and we made further progress on monetizing Dash 8-400 aircraft exiting the CPA fleet. Looking at the quarter, adjusted EBITDA was $50.7 million, essentially in line with last year.

What is important here is the mix. Voyager and KDEX contributed an additional $6.5 million of adjusted EBITDA primarily from higher part sales which substantially offset the contractual step downs in fixed margin and leasing revenue under the CPA.

Adjusted net income per share increased to $0.83 up 54% from Q2 2025. That reflects the earnings contribution I just mentioned, a $2.5 million gain on aircraft sales, along with lower depreciation and interest costs and the benefit of our capital allocation activity, which reduced the weighted average shares outstanding by approximately 13% compared to the prior year.

Free cash flow was $32.3 million or $1.41 per share. On a per share basis, free cash flow was higher than last year, which is a good example of the compounding impact of our buybacks alongside the cash generation of the business.

Leverage, or our adjusted net debt to adjusted EBITDA was 1.5x. Improving from 1.7x at year-end and remains comfortably within our targeted range of 1 to 2x.

As Colin noted, we closed the KDEX transaction on April 1st. KDEX contributed $16.4 million of revenue, and $1.2 million of net income in the quarter, inclusive of $500 thousand of amortization of acquisition related intangible assets.

That bottom line contribution is ahead of our initial expectations and we are encouraged by how quickly KDEX is adding to both our earnings diversification and our parts and supply chain capabilities. We also made strong progress on aircraft monetization.

7 aircraft have now been sold to date including 4 during the second quarter. Those sales generated $40.4 million of proceeds in the quarter, and $58.4 million in the first half of this year, and contributed to a $2.5 million gain on sale in Q2.

Combined with free cash flow of $32 million, we generated $73 million of free cash flow and aircraft sale proceeds in the quarter bringing the total for the first half of the year to 118 million The 2 remaining aircraft are expected to close by the end of the year following completion of required engine work for expected net proceeds of approximately $14.4 million Turning to capital allocation. We continue to execute against the 2029 to 2020 plan we outlined earlier this year.

That plan includes up to $100 million in share buybacks, $40 million in dividends, $190 million of amortizing term loan repayments, and a $170 million to $220 million of flexible capital allocation. During the quarter, we repurchased and canceled 617 thousand common shares under our NCIB program.

Representing $14.8 million of share buybacks. Year to date, we have repurchased and canceled approximately 845 thousand shares for $20 million.

We also paid a quarterly dividend of $0.11 per share, When you combine the dividend and the buybacks, we returned $17.3 million to shareholders in the quarter, while maintaining a strong balance sheet and the flexibility to support growth. Liquidity remains strong at $204 million at June 30.

That gives us meaningful flexibility as we continue to balance growth shareholder returns debt reduction and disciplined investment in the business. So overall, we are pleased with the quarter.

The business continues to generate strong free cash flow, Our leverage remains well within our target range. Kadex is off to a strong start, and we are continuing to execute on our capital allocation plan we laid out earlier this year.

We also reaffirmed our full year guidance which reflects our confidence in the underlying cash generation of the business. We are now ready to take your questions.

Congrats on a good quarter. My first question is on KDEX.

Very first quarter with you guys seems like it has outperformed your expectations in the very first quarter. Can you help us explain what led to the outperformance.

You know, what is going better there? Was it all integration, or just, you know, the sheer end-market exposure they have?

So yeah, any thoughts there and how sustainable we should think, for that business?

Morning, Konark. it is Colin.

Yeah. Thanks for the comments.

Yeah. Look.

We have been pretty excited about KDEX from the beginning, and we hit a lot of ideas on what we can do with the business, as well as sort of the leadership team there. So, you know, it is performed exceptionally well kind of on a current business base.

there is been some integration opportunities where we are looking at it, you know, internal cross organization opportunities, which are starting to develop. We are working our way through those things, and there is several things to be done as we move forward there.

And on top of that is really all the new areas that we are starting to look at, which is kind of a build out strategy. So, you know, I would say there is more opportunities in KDEX today for us to pursue than we can pursue right now.

So our focus is just steady growth, you know, working with them to continue to build that business out, continue to make smart decisions on how we invest and where we invest. We talked about their hangar, expansion they just went through, so they increased some space there.

So, yeah, there is there is endless opportunities we see. And we are working our way through that.

Obviously, the internal stuff is going to start to happen as we move forward. It takes a bit of time as we leverage those opportunities, but they are coming together nicely.

So excited about the business. You know, exceeding expectations, and really no end to, what we can do with the business as we move forward.

K. And thanks for the color there, Colin.

If we can switch gears to Voyager, you know, the you guys had signed, I think, a couple of MOUs recently, 1 with Airbus and another with 49 North, You explain, like, is there an overlap between those 2 MOUs I mean, do you have to kinda work with both Airbus and 49 North together, or can they be separate? And, what kind of discussions are you having, with the potential customers saying, like, what kind of role are you going to play in these same MOUs?

Yeah.

Good question. Yeah.

No. Those agreements are not yeah, interchanged or exclusive in any way.

They are not tied to each other, and they are very separate. You know, if you think of 49 North, what Voyager brings to that book of business is different.

They bring me kind of the operation and the maintenance and the support side. So that is kind of a relationship build that you know, is more of a team build where they are gonna be working on initiatives and bids bringing expertise from, both sides of the business.

So, you know, different very different companies from that perspective that when they work together have a huge opportunity to pursue all kinds of offer. All kinds of bids when it comes to ISR.

When you think of the flex rotor opportunity, it is a little different. You know, they we are we are talking there more about Voyager being the operator of the uncrewed drone, and it would be essentially a deployment opportunity for them where they would be looking at the deployment.

They would be out there flying the, flying the machine and doing whatever work needs to be done, whoever they are working for. And Airbus really is more, in that regard, is more you know, kind of working with them to secure those opportunities.

Great company to work with. You know, they the this machine is well known.

it is got thousands and thousands of flight hours on it. it is in multiple deployment opportunities.

Around the world. So you know, we are excited about it.

We think Canada is right, so does Airbus for this type of this type of machine in order to give us kind of lower cost, and higher technology capabilities. And there is several there is several possibilities when you think about this.

You know, generally speaking, you know, you are talking about defense opportunities. You are talking about surveillance opportunities.

You are talking about forestry, observation, firefighting, observation, mapping. Those are the kind things that you would see that government agencies, the where this drone gets deployed in.

Okay. that is very good color.

Thanks. And just a very quick 1 housekeeping.

On the final 2 aircraft that you are disposing, any thoughts what led to the delays there? I think you guys were expecting to wrap them up by the third quarter, I think.

Now it is ending in Q4. Any thoughts on the delays?

Thanks. Yeah.

it is it is the usual stuff. You know?

there is always when it comes to, aircraft and moving them between owners, there is always some little things that come up in timing, on maintenance, and so on. So it is all normal course stuff.

You saw throughout all of those sales, it takes you know, there is some that get delayed and a little bit, and they pop into the next quarter. that is just it is normal course.

Nothing unusual. No issues, everything's been pretty much as planned, just took a little bit more time here.

it is Gary here. It really just relates to waiting for some engines to come back from overhaul to deliver the aircraft, so that is all we are waiting for.

Perfect. Thanks for the time.

I will turn the line over.

Congrats on a good quarter, and thanks for having me on and thanks. I appreciate that.

I just wanted to ask a question on the guide You know, there is a sizable Q2 beat, but even though the high end of the range kind of implies a pretty meaningful step down in Q3 and Q4 So can you just talk about the primary swing factors in H2 that kind of kept you from increasing the guide. Is that FX or anything else that you can call out?

Sorry, I cannot hear you. I will let Gary take that 1, but I did not hear the first part of the question, I am sorry.

I was just saying that there was a sizable Q2 beat and then that our guidance, even at the high end of the range implies a meaningful step down versus Q2. In Q3 and into Q4.

Gotcha. Okay, Gary.

I will let you take that.

Yeah. No, really, when we look at it, we are tracking towards the high end of the guidance no question about it.

We are not expecting any big step down in the remainder of the year. We do have the aircraft leasing on the CPA.

We talked about that. We give them guidance on that, so that is baked in.

I think it is just a bit of conservatism to see how the back end of the year plays out, but we feel very comfortable with it, and we expect in Q3 to have more to give on that. But there is really nothing that we expect really to hit us in the back end of the year.

We expect Voyager to continue to perform KDEX continue to perform, the same as Jazz.

Appreciate the color there. And then on the new Jazz operator agreement, you flagged that as a cost headwind.

Can you help us quantify the annual impact from that new agreement? And the extent to which that is being recovered through the controllable cost agreement?

Gary, I will let you cover that 1 too.

Yeah. So on the labor deal with CALDA that we just completed, yeah, all of that is covered under the Air Canada CPA agreement and within the controllable cost guardrail.

So no issues there.

Alright. Appreciate it.

I will turn the line over.

I wanted to ask, I guess, about the aircraft parts sales. I mean, it does sound like the Kadex business is as you mentioned, running a little ahead of your expectations, and I assume fairly steady through the year.

Can you maybe update us on your outlook for the Voyager part sales? I mean, it sounds like you are got a number of new programs there that are helping that.

But it tends to be, I guess, a lumpier business. So maybe just any thoughts on what we should expect in the second half of the year as far as part sales specific to the Voyager business?

Yeah. Hi, Cameron.

We see this as a growth area. Right?

So we are continuing to focus on, to push and grow in areas that make sense. So the broader the platform we can build, the more opportunities and flexibilities to invest and grow.

So that is what you are really seeing us do on the ATR and the Boeing side of things. You know, those were opportunities that make good economic sense.

And so we moved on them. We are gonna continue to do that and continue to build that out to a, a broader platform over time.

We have stayed, I would say, principally focused on the narrow body and down type aircraft. Most of what we carry is regional aircraft today, but it is really just slowly building things out where it makes economic sense to do that.

I would say that, we will continue to see growth in that area for sure over the long run. It is lumpy.

there is no question about it. We have seen that in the first quarter where we had, you know, some ups and downs, and that is just the nature of the business.

But overall, if you if you take the longer view, no question, growth for sure.

Okay. No.

that is helpful. And maybe just a question on labor.

Obviously, there is a lot of opportunities that you talked about perhaps on the defense side for your business. And I am just wondering, you know, is the availability of labor or qualified people for those types of programs, is that a constraint at all for some of the programs you might bid on?

I mean, obviously a number of other companies out there in Canada that are also pursuing you know, similar type business. I am just wondering if labor is 1 of those things that constrain you or is it not an issue for you?

No, it is a good question. But it is not.

We have been fortunate because there is a lot of -- you get to a kind of a critical mass, a certain size of business where you know, you can start to bring on expertise, and we have just recently brought on another new expert in this area that has tons of field experience and knowledge and so for us to now grow this out slowly with time, we have had no problems bringing in at the right expertise That can help build this out and do the training we need. There will be some training for and we have talked a little bit about that.

For the new flex rotor, but it is it is there is no constraint when you think of when you think of labor. And even if you think of Voyageur when they expanded Voyageur in Trenton, that was 1 of the questions we had and 1 of the things we had to do some research on to make sure we could get the qualified folks in the right location.

And we have had no problems with that. it is more on the commodity side.

When you get into the specialty stuff, I think it is quite easy. When you get into kind of the day to day maintenance or day to day flying airplanes or, you know, in the commercial world?

it is definitely more competitive and can be can be harder. But all of the specialty type and niche opportunities, especially in defense, we have not seen a lot of problems with anything related to labor.

Okay. No.

that is helpful. I appreciate the time.

I just wanted to touch on the FlexRotor, as well as potential longer term autonomous firefighting aircraft. And I guess just what you think the CapEx requirements are going to be coming down the pipe.

Presumably that is part of your discretionary capital in your multiyear plan. And then how does the revenue or economics of these arrangements differ from existing special mission flights that you are operating?

Yeah. Hi, Daryl.

I will mean, I will tell you a high level on the initial go with flex rotor. it is a very small investment for us.

it is more kind of the work to get there. So we do not we do not see this massive investment to get in here.

This is it is a reasonable investment, and over time, you build it out. But Gary's got some sense of it there doing a bunch of work on it.

I will let Gary give some comments as well.

Yeah. The RPAS, back to Colin's point, is certainly covered in our CapEx outlook, and we have not moved that for the year.

So Daryl, it is covered in that piece. And it is a modest investment.

It gives us a the ability to start the process of getting the capability on the RPAS piece. We have a lot of expertise at Voyager, so this allows them to develop that piece.

And as far as the margins go, you know, those are to be defined, but they are good margins from what we can see in this business is it is really about building the capability right now, but we do expect, you know, down the road to actually get some revenue contracts behind it and for it to produce some reasonable returns.

Got it. And then second question, just on the M&A front.

A bit of a higher level question. We have seen a lot of defense based partnerships between countries, between NATO nations.

Is that opening any new M&A opportunities potentially in geographies you maybe would not have considered historically just given I think there is a shortage of folks with your capabilities and skills around modifications out there. Just curious if it is changing your lens on geographic positioning.

Yeah, it is a good question because as time evolves, certainly, we are you know, as especially if you think of, you know, Europe or even there is been opportunities in Australia. If you think about some of those other countries where exactly what you said were closely tied Those things are starting to kinda slowly show up on the radar.

You know, it is not something we are pursuing immediately or that we are looking at right now, but it is something we would look at, as time progresses here to see how we can build things out. The 1 advantage to being a Canadian defense contractor is your access into a lot of countries and your ability to do things in many countries.

And Voyageurs, operated in many countries over the years, and still does today in some. So it is it is it is a unique opportunity being a Canadian contractor.

It really is. It gives you kind of leverage in a lot of ways.

And you are well received. So I think we you know, we are we are we are moving on that aspect of things as things kind of broaden and grow out.

and we have really strong relationships with the US. Voyager has extensive relationships with the US.

Metraya is a good example. Where they are building the aerial firefighter for them.

You know, that is a US defense contractor essentially is what Metrea is. And they have several others as well that they work with.

So there is lots of opportunities as time progresses. Our focus right now is a little more organic on the defense side because we have quite a bit of capability.

But I would not rule out as we move forward. Got it.

Very helpful. Response, and congrats on the on the good results, guys.

Thank you very much for the time. Good morning.

My first question is around the annual guide. We have sort of touched on this a little bit here, but I just want to see if I can kind of round this off and make sure I am understanding the full year outlook.

So you are trending towards the top end of your EBITDA guide for the year. You mentioned KDEX is a little running a little better than expected.

I know part sales in the second quarter were strong, a Some of that, if not all of that, I am not sure, was a delay, I think, from Q1. So can you characterize overall, is there anything or any particular business lines that you would point to as kind of pushing you towards the top end of your guidance?

Or is it really just kind of conservatism maybe across all business lines in your original range that you provided?

Yeah, I think it is you know, it is more on the conservatism side, Tim. Right now, we just need to see how the rest of the year comes out, but we do expect a good end to the year.

Just where we are still within, you know, certainly the top end of that guidance, we decided to leave it where it is at. You look at where Voyageur has been trending.

If you look year to date or, you know, when you back out KADEX's performance, our year to date numbers, you can see they are modestly up year over year as far as revenue goes. But I think what we need to remember there too is we have had the repositioning from the United Nations flights within there.

So they are up nicely year over year on the revenue side. And we just want to see how that plays out, but we expect it to continue to play out.

And on KDEX side, we continue to expect them to perform in a similar fashion as they are So I think it is just that let's see how the bulk of the year goes, but we do expect to be, you know, towards the top end of that. Okay.

that is helpful. Thank you.

And then on the UN, I just wanted to ask. I know you have got a step down that is occurred or another 1 coming.

I think, actually, your contract flying revenue was up sequentially in the quarter, versus Q1. Is there sort of another modest step down at some point coming related to that?

Or is that already kind of embedded in your run rate? revenues from that line of business?

No. that is a good question, Tim.

There is another 1 coming. We have kind of talked about that.

We are we have 1 mission left with the United Nations. that is been extended out into March.

Of next year, Q1 next year. So, it will be delayed a little bit.

Into that period, but, and that is a natural extension as far as the contract goes. So you would probably look at more steady revenue from that over the next couple quarters you know, from what you have seen in the results.

Okay. that is great.

Thank you very much.

Maybe just to follow up on some of the defense conversations that you have had on this call. Can you speak to how big you think defense could become for Chorus and maybe just the pace of some of these kind of defense contracts.

Being awarded? Is it slower or faster than you have been anticipating?

Thank you.

Yeah. it is absolutely a good question, and it is, you know, speculative to really you know, kind of zoom in on it.

that is the challenge with it. You know, if you look at what we are doing, we have a lot of opportunities that they are working.

And they are working in a vast range of different things across several organizations with partnerships and so on. So that is what you are seeing as build out.

there is no question that, we are starting to see some activity with the government and things being awarded, and so that is very positive. The pace at which that is going is you know, maybe a little slower than I think industry would say than what we were anticipating.

But it is still progressing. We are seeing lots of different things coming to the table and being awarded.

So I would say, you know, yeah, it is going pretty much as planned. Voyageur is doing everything they can right now to really focus in this area.

there is lots of opportunities for them to work on. And there is no question over time.

Some of these things are going to start to come to fruition. But I cannot really give you any clear indication as to when that will be.

And percentage growth, you know, if you start to think about growth, it is pretty hard to it is pretty hard to give you anything at this point. We have not really put anything out.

But, Gary, I do not I do not know if you have any comments on the growth side.

No. I think you kind of hit it.

It will be kind of lumpy in step up and step up as far as those things go when we land a contract. You will start to see the movements up.

But if you look year over year, we have seen some nice increase on the MRO and defense up about 15%. So it continues to grow So that is you know, we are hoping to keep that pace and maybe accelerate it if we can land a contract or 2.

that is great color. Thank you.

And then maybe just 1 last 1. Do you feel about your kind of competitive positioning in the defense area right now.

Thank you.

Sure. that is, you know, that is another good 1.

We really like the position that we are in today because there is not -- number 1, there is not a lot of competitors in Canada that are in the same position as Voyager and the offerings they have. You know, I would say that they are, you know, there is probably 1 or 2 others that we compete against, which is a healthy thing, as we all know.

1 of the biggest things I think the industry in Canada is lack is having that degree of competition, having that level of expertise growing in Canada. So we are very comfortable with the competition.

Know, we expect that some of these new technologies will see more competitors pop out, and you do see that. You know, especially on the R&D side with more and more drone operators and development and stuff like that, you know, R&D type stuff.

But for Voyageur, you know, there is a high degree of expertise there. there is a lot of years of experience.

They have done a lot of deployments around the world, so they have built a very niche business. that is very hard to replicate.

You know, the barriers to entry are really hard when it comes to the type of capability that they have. So we are we are in a very comfortable position.

You know, our expectation is not to be a you know, an L3Harris. But they have lots of opportunities to work with these larger defense companies to build out our business.

So excited about it. Do not see a ton of competition in Canada.

And, you know, I think in general, we are very comfortable with the ability to grow this business.

Thank you. I appreciate the color.

Thanks for the follow-up. So I think I want to go back to your capital allocation discussion from the last few quarters.

So when you laid out the framework, back in February, I think you are tracking, I guess, pretty well on that. But just wanted to understand, you know, from an M&A standpoint, So you had this flexible capital allocation bucket of $170 to $220 million.

And I guess with the KDEX and Allison, you probably have burnt about 20% of that. And on the share buybacks, you have also done about 20% of the $100 million Do you see the flexible bucket, you know, giving you flexibility or enough flexibility to shift between M&A and, you know, incremental buybacks, or that bucket we should assume that is mostly earmarked for M&A?

Just give you a high level, and then let Gary chime in as well and get his view. You know, I think Konark it there is there is going to be some movement in our plan going forward.

But what we have done there is we have provided as much clarity as we can on that flexible you know, capital. I think we are gonna stay pretty much on track and on plan, but, you know, you cannot predict the future where opportunities lie.

And our number 1 underlying goal, as we have said from day 1, is we are gonna deploy that capital to the best ability we can to get the right returns. And we have been clear in kind of laying out our returns and what our expectations are.

We have been I think we have been quite transparent on that, and we have stuck to that. We have not come off that.

So you know, I would not expect a lot of variance. Right now, we do not see it.

We see lots of opportunities. We are still working our way through the through the acquisition opportunities now, the pipeline.

We still plan to continue with our share buybacks. You know, our dividend as well is something that, you know, we are thinking about and on, and the board is evaluating on a on a regular basis.

So you know, I would not suggest that there is any significant change to what we have laid out there. But, you know, things change with time, and we will continue to evolve the business and the use of that capital in the most efficient way we possibly can.

that is that is the key focus. Gary, I do not know what your thoughts are.

Yeah. Konark, it is Gary here.

I think when you look at the $500 million to $550 million in free cash flow and asset sales numbers and the flexible capital allocation within that. We have not allocated any of the flexible capital allocation to M&A at this point.

We still have the capacity to borrow. As you know, we are well at within a range 1.5x net debt to adjusted EBITDA.

We have the borrowing capacity. We have -- when we purchased KDEX, we put it on our operating line.

We subsequently essentially paid that off. But we have the borrowing capacity.

So we have not committed to the flexible capital allocation being to M&A at this point. We are leaving all our options open.

Have complete flexibility as to how we do that. And so back to Colin's point, we do not see any change to that forecast we have given at this stage, and we will provide an update when it is appropriate.

But you know, we are tracking well with it.

I see. Makes sense.

Thanks. And if I can squeeze in a second follow-up.

On Billy Bishop expansion, I think the government shut down, right, the expansion, prospects there. If it were to come back again, I mean, what would be the expect expectations from you, by Air Canada?

To help fulfill the extension? I mean, would you be able to fly the CRJs there, or would you be able to diversify into some other jets?

Sorry. Konark,

I apologize. I my speakers are in fact not good, but the what was the first part of the question?

I get it was in regards to Air Canada, but sorry I did not quite get it. Yeah.

So the Billy Bishop, Airport the Toronto City Airport, you know, they were trying to expand, and they were prop proposals for that but got shut down on those proposals. So I was just curious if the expansion, opportunity comes back.

At the airport. How would you be, yeah, able to participate in that?

Like, what would be the ask from Air Canada for you guys? Yeah.

I will be honest. I do not know for sure, but there is no question.

We are their operator in there. We have spent, you know, a lot of time and a big investment in setting everything up and being a critical part of, that business.

So you know, we would fully anticipate, being, being there and, you know, expanding as they require on the commercial side. But I do not know what their plans would be if that would happen.

I could not tell you. But, certainly, there would be more flying.

I would fully anticipate for us And, you know, we would we would obviously pursue that. We are the 1 thing with Air Canada and our relationship is our goal is to you know, always build that business in any way we can.

And we are we are very close to Air Canada. We spent, you know, our whole careers working with them.

And we have got a long history and a good track record. So, you know, our goal with Air Canada and the CPA and the relationship between us is to continue to build that out over time.

We have not seen a lot of growth opportunities in that recently, so we are focused in other areas right now. But when there is opportunities for us to work with Air Canada and grow the business, and it makes sense, we are absolutely gonna be all over that.

Yeah. That makes sense.

Perfect. Thanks again for the time.

You bet.

Thank you, everyone, for joining today. That concludes today's call.

Please have a great day.