Financial Statement Highlights
CATSA’s financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and approved by the Accounting Standards Board of Canada (AcSB).
Disposals
CATSA manages its assets, including asset disposal, as part of a lifecycle management regimen or as part of new technology requirements. The disposal of assets is governed by corporate policy and procedures that ensure compliance with applicable legislation and regulations concerning the disposal of Crown assets.
Statement of Financial Position
| Statement of Financial Position (in thousands of dollars) | Actual 2024/25 | Forecast 2025/26 | Plan 2026/27 | Plan 2027/28 | Plan 2028/29 | Plan 2029/30 | Plan 2030/31 |
|---|---|---|---|---|---|---|---|
| ASSETS | |||||||
| Current assets | |||||||
| Cash | $ 102,215 | $ 10,000 | $ 10,000 | $ 10,000 | $ 10,000 | $ 10,000 | $ 10,000 |
| Trade and other receivables | 80,371 | 185,143 | 206,447 | 84,127 | 80,748 | 81,160 | 79,337 |
| Inventories | 18,776 | 22,474 | 16,376 | 13,229 | 11,146 | 9,828 | 9,664 |
| Prepaids | 8,603 | 8,861 | 9,127 | 9,401 | 9,683 | 9,973 | 10,272 |
| Derivative financial assets | 855 | - | - | - | - | - | - |
| $ 210,820 | $ 226,478 | $ 241,950 | $ 116,757 | $ 111,577 | $ 110,961 | $ 109,273 | |
| Non-current assets | |||||||
| Property and equipment and intangible assets | |||||||
| EDS | $ 370,576 | $ 399,915 | $ 442,624 | $ 471,589 | $ 500,535 | $ 530,993 | $ 548,883 |
| Non-EDS | 24,457 | 31,980 | 34,725 | 41,538 | 36,914 | 31,998 | 26,945 |
| $ 395,033 | $ 431,895 | $ 477,349 | $ 513,127 | $ 537,449 | $ 562,991 | $ 575,828 | |
| Right-of-use assets | $ 16,664 | $ 13,317 | $ 10,381 | $ 7,602 | $ 7,867 | $ 6,398 | $ 5,819 |
| Employee benefits asset | $ 64,809 | $ 89,122 | $ 86,372 | $ 83,627 | $ 80,883 | $ 78,141 | $ 75,398 |
| Derivative financial assets | 59 | - | - | - | - | - | - |
| $ 687,385 | $ 760,812 | $ 816,052 | $ 721,113 | $ 737,776 | $ 758,491 | $ 766,318 | |
| LIABILITIES AND EQUITY | |||||||
| Current liabilities | |||||||
| Trade and other payables | $ 182,949 | $ 195,751 | $ 217,055 | $ 94,735 | $ 91,355 | $ 91,767 | $ 89,944 |
| Holdbacks | 35 | - | - | - | - | - | - |
| Lease liabilities | 3,263 | 3,254 | 2,743 | 2,165 | 2,278 | 2,400 | 2,190 |
| Deferred government funding related to operating expenses | 27,379 | 31,335 | 25,503 | 22,630 | 20,829 | 19,801 | 19,936 |
| Derivative financial liabilities | 58 | - | - | - | - | - | - |
| $ 213,684 | $ 230,340 | $ 245,301 | $ 119,530 | $ 114,462 | $ 113,968 | $ 112,070 | |
| Non-current liabilities | |||||||
| Lease liabilities | $ 15,738 | $ 12,405 | $ 9,771 | $ 7,484 | $ 7,478 | $ 5,363 | $ 4,501 |
| Deferred government funding related to capital expenditures | 389,690 | 431,018 | 476,566 | 512,438 | 536,849 | 562,471 | 575,388 |
| Employee benefits liability | 22,445 | 22,873 | 24,147 | 25,421 | 26,695 | 27,969 | 29,243 |
| Deferred revenue - screening services - other | 4,571 | - | - | - | - | - | - |
| $ 432,444 | $ 466,296 | $ 510,484 | $ 545,343 | $ 571,022 | $ 595,803 | $ 609,132 | |
| Equity | |||||||
| Accumulated surplus | $ 41,257 | $ 64,176 | $ 60,267 | $ 56,240 | $ 52,292 | $ 48,720 | $ 45,116 |
| $ 687,385 | $ 760,812 | $ 816,052 | $ 721,113 | $ 737,776 | $ 758,491 | $ 766,318 | |
Statement of Comprehensive Income (Loss) and Equity
| Statement of Comprehensive Income (Loss) and Equity (in thousands of dollars) | Actual 2024/25 | Forecast 2025/26 | Plan 2026/27 | Plan 2027/28 | Plan 2028/29 | Plan 2029/30 | Plan 2030/31 |
|---|---|---|---|---|---|---|---|
| Expenses | |||||||
| Pre-Board Screening | $ 670,637 | $ 709,911 | $ 788,054 | $ 296,882 | $ 290,391 | $ 292,313 | $ 292,280 |
| Hold Baggage Screening | 172,283 | 185,814 | 202,000 | 98,138 | 96,953 | 95,079 | 94,833 |
| Non-Passenger Screening | 150,960 | 166,748 | 206,547 | 73,734 | 70,688 | 70,443 | 70,391 |
| Restricted Area Identity Card Program | 5,011 | 4,957 | 4,797 | 2,559 | 2,594 | 2,314 | 2,012 |
| Corporate services | 60,447 | 62,185 | 64,584 | 30,131 | 29,873 | 30,629 | 31,433 |
| Total expenses | $ 1,059,338 | $ 1,129,615 | $ 1,265,982 | $ 501,444 | $ 490,499 | $ 490,778 | $ 490,949 |
| Other expenses (income) | |||||||
| Finance costs | $ 683 | $ 638 | $ 519 | $ 415 | $ 352 | $ 304 | $ 240 |
| Foreign exchange loss (gain) | 82 | (214) | - | - | - | - | - |
| Write-off of property and equipment and intangible assets | 81 | 48 | - | - | - | - | - |
| Net (gain) loss on fair value of derivative financial instruments | (948) | 856 | - | - | - | - | - |
| Gain on disposal of property and equipment | - | (19) | - | - | - | - | - |
| Total other expenses (income) | $ (102) | $ 1,309 | $ 519 | $ 415 | $ 352 | $ 304 | $ 240 |
| Revenue | |||||||
| Finance income | $ 3,459 | $ 2,170 | $ - | $ - | $ - | $ - | $ - |
| Other income | 53 | 66 | - | - | - | - | - |
| Total revenue | $ 3,512 | $ 2,236 | $ - | $ - | $ - | $ - | $ - |
| Financial performance before government funding | $ 1,055,724 | $ 1,128,688 | $ 1,266,501 | $ 501,859 | $ 490,851 | $ 491,082 | $ 491,189 |
| Government funding | |||||||
| Parliamentary appropriations for operating expenses | $ 1,002,116 | $ 1,068,466 | $ 1,198,834 | $ 426,524 | $ 408,438 | $ 407,665 | $ 406,502 |
| Amortization of deferred government funding related to capital expenditures | 48,201 | 51,575 | 59,985 | 68,116 | 75,947 | 77,263 | 78,443 |
| Parliamentary appropriations for lease payments | 3,242 | 3,937 | 3,773 | 3,192 | 2,518 | 2,582 | 2,640 |
| Total government funding | $ 1,053,559 | $ 1,123,978 | $ 1,262,592 | $ 497,832 | $ 486,903 | $ 487,510 | $ 487,585 |
| Financial performance | $ (2,165) | $ (4,710) | $ (3,909) | $ (4,027) | $ (3,948) | $ (3,572) | $ (3,604) |
| Other comprehensive income | |||||||
| Item that will not be reclassified to financial performance | |||||||
| Remeasurement of defined benefit plans | $ 6,521 | $ 27,629 | $ - | $ - | $ - | $ - | $ - |
| Total comprehensive income | $ 4,356 | $ 22,919 | $ (3,909) | $ (4,027) | $ (3,948) | $ (3,572) | $ (3,604) |
| Equity | |||||||
| Accumulated surplus, beginning of year | $ 36,901 | $ 41,257 | $ 64,176 | $ 60,267 | $ 56,240 | $ 52,292 | $ 48,720 |
| Total comprehensive income | 4,356 | 22,919 | (3,909) | (4,027) | (3,948) | (3,572) | (3,604) |
| Accumulated surplus, end of year | $ 41,257 | $ 64,176 | $ 60,267 | $ 56,240 | $ 52,292 | $ 48,720 | $ 45,116 |
Statement of Cash Flows
| Statement of Cash Flows (in thousands of dollars) | Actual 2024/25 | Forecast 2025/26 | Plan 2026/27 | Plan 2027/28 | Plan 2028/29 | Plan 2029/30 | Plan 2030/31 |
|---|---|---|---|---|---|---|---|
| Cash flows provided by (used in) | |||||||
| Operating activities | |||||||
| Financial performance | $ (2,165) | $ (4,710) | $ (3,909) | $ (4,027) | $ (3,948) | $ (3,572) | $ (3,604) |
| Items not involving cash | |||||||
| Depreciation and amortization | 50,610 | 54,902 | 63,124 | 70,901 | 78,043 | 79,097 | 80,430 |
| Change in net employee benefits asset/liability | 2,761 | 3,744 | 4,024 | 4,019 | 4,017 | 4,016 | 4,017 |
| Write-off of property and equipment and intangible assets | 81 | 48 | - | - | - | - | - |
| Amortization of deferred government funding related to capital expenditures | (48,201) | (51,575) | (59,985) | (68,116) | (75,947) | (77,263) | (78,443) |
| Change in fair value of financial instruments at fair value through profit and loss | (948) | 856 | - | - | - | - | - |
| Other non-cash transactions | (520) | (162) | - | - | - | - | - |
| Gain on disposal of property and equipment | - | (19) | - | - | - | - | - |
| Net change in working capital balances | 77,636 | (91,971) | - | - | - | - | - |
| $ 79,254 | $ (88,887) | $ 3,254 | $ 2,777 | $ 2,165 | $ 2,278 | $ 2,400 | |
| Investing activities | |||||||
| Parliamentary appropriations received for capital funding | $ 65,115 | $ 92,865 | $ 105,533 | $ 103,988 | $ 100,358 | $ 102,885 | $ 91,360 |
| Purchase of property and equipment and intangible assets: | |||||||
| EDS | (41,742) | (79,009) | (94,354) | (86,558) | (91,418) | (93,404) | (82,024) |
| Non-EDS | (7,799) | (13,875) | (11,179) | (17,430) | (8,940) | (9,481) | (9,336) |
| $ 15,574 | $ (19) | $ - | $ - | $ - | $ - | $ - | |
| Financing activities | |||||||
| Lease principal payments | $ (2,568) | $ (3,309) | $ (3,254) | $ (2,777) | $ (2,165) | $ (2,278) | $ (2,400) |
| $ (2,568) | $ (3,309) | $ (3,254) | $ (2,777) | $ (2,165) | $ (2,278) | $ (2,400) | |
| Increase (decrease) in cash | $ 92,260 | $ (92,215) | $ - | $ - | $ - | $ - | $ - |
| Cash, beginning of year | $ 9,955 | $ 102,215 | $ 10,000 | $ 10,000 | $ 10,000 | $ 10,000 | $ 10,000 |
| Cash, end of year | $ 102,215 | $ 10,000 | $ 10,000 | $ 10,000 | $ 10,000 | $ 10,000 | $ 10,000 |
Reconciliation of Financial Performance (IFRS) to Operating Appropriations Used
| Reconciliation of Financial Performance to Operating Appropriations Used (in thousands of dollars) | Actual 2024/25 | Forecast 2025/26 | Plan 2026/27 | Plan 2027/28 | Plan 2028/29 | Plan 2029/30 | Plan 2030/31 |
|---|---|---|---|---|---|---|---|
| Financial performance before government funding | $ 1,055,724 | $ 1,128,688 | $ 1,266,501 | $ 501,859 | $ 490,851 | $ 491,082 | $ 491,189 |
| Non-cash expenses | |||||||
| Depreciation and amortization | $ (50,610) | $ (54,902) | $ (63,124) | $ (70,901) | $ (78,043) | $ (79,097) | $ (80,430) |
| Employee benefits expense | (2,761) | (3,744) | (4,024) | (4,019) | (4,018) | (4,016) | (4,017) |
| Non-cash finance costs related to leases | (674) | (628) | (519) | (415) | (352) | (304) | (240) |
| Spare parts expense funded from capital | (360) | (63) | - | - | - | - | - |
| Write-off of property and equipment and intangible assets | (81) | (48) | - | - | - | - | - |
| Non-cash loss on foreign exchange recognized in financial performance | (70) | - | - | - | - | - | - |
| Change in fair value of financial instruments at fair value through profit and loss | 948 | (856) | - | - | - | - | - |
| Gain on disposal of property and equipment | - | 19 | - | - | - | - | - |
| Parliamentary appropriations for operating expenses | $ 1,002,116 | $ 1,068,466 | $ 1,198,834 | $ 426,524 | $ 408,438 | $ 407,665 | $ 406,502 |
| Other items affecting funding | |||||||
| Net change in prepaids and inventories | $ 4,411 | $ 3,956 | $ (5,832) | $ (2,873) | $ (1,801) | $ (1,028) | $ 135 |
| Total operating appropriations used | $ 1,006,527 | $ 1,072,422 | $ 1,193,002 | $ 423,651 | $ 406,637 | $ 406,637 | $ 406,637 |
Operating and Capital Plans
The five-year operating and capital budgets reflect CATSA’s approved funding levels with the budget for 2027/28 and beyond reverting to CATSA’s reference level funding. CATSA continues to support Transport Canada in the development of an operationally effective and sustainable long-term funding strategy. Supplemental funding will be required for 2027/28 and beyond to allow the organization to maintain operations. The narrative that follows reflects the priorities established in CATSA’s strategic plan, subject to available funding.
Operating
| Operating Plan by Major Expenditure Category (Figures are in thousands) | Actual 2024/25 | Forecast 2025/26 | Budget 2025/26 | Plan 2026/27 | Plan 2027/28 | Plan 2028/29 | Plan 2029/30 | Plan 2030/31 |
|---|---|---|---|---|---|---|---|---|
| OPERATING EXPENDITURES | ||||||||
| Screening Services and Other Related Costs | 845,471 | 904,127 | 938,194 | 1,026,041 | 360,831 | 346,341 | 346,341 | 346,341 |
| Equipment Operating and Maintenance | 56,135 | 56,678 | 55,147 | 53,917 | 20,287 | 19,472 | 19,472 | 19,472 |
| Program Support and Corporate Services | 108,113 | 114,039 | 108,583 | 113,044 | 42,533 | 40,824 | 40,824 | 40,824 |
| SUBTOTAL | $ 1,009,719 | $ 1,074,844 | $ 1,101,924 | $ 1,193,002 | $423,651 | $406,637 | $406,637 | $406,637 |
| Revenue and Other Income | (3,192) | (2,422) | - | - | - | - | - | - |
| TOTAL | $ 1,006,527 | $ 1,072,422 | $ 1,101,924 | $ 1,193,002 | $423,651 | $406,637 | $406,637 | $406,637 |
2025/26 Financial Results
Net operating expenditures are estimated to be $1,072.4 million, which is $29.5 million lower than the Corporate Plan budget of $1,101.9 million. The major factors contributing to the variance are lower spending due to a delay in the introduction of Transport Canada regulations for enhanced NPS and lower passenger volumes than planned.
2026/27 – 2030/31 Financial Plan Highlights
Funding requirements for Screening Services and Other Related Costs will increase over the planning period mainly to reflect additional screening hours to support the 95/15 wait-time service level in the face of increasing passenger volumes, the implementation of enhanced non-passenger screening, and screening contractor billing rate increases. These increases are partially offset by efficiencies, including but not limited to those associated with the Comprehensive Expenditure Review which are largely focused on CATSA’s screening operations given this area reflects the majority of CATSA’s planned spending.
Equipment Operating and Maintenance spending includes the costs to support CATSA’s EDS and non-EDS equipment. These costs vary over the planning period primarily due to new and ongoing deployments of more advanced technology, in addition to anticipated contractual rate increases on several of CATSA’s extended warranty agreements with equipment vendors. In addition, deployments of new and more advanced technology will require training for CATSA’s maintenance service provider.
Program Support and Corporate Services include salaries and benefits to support CATSA’s workforce, as well as other business-related costs. Over the five-year planning period, funding requirements vary due to inflationary pressures, as well as other support costs for various corporate initiatives including the implementation of CATSA’s Cyber plan, IT modernization and artificial intelligence. These impacts are minimized through achievement of savings and reduction in the workforce.
Capital
| Capital Plan by Major Initiative (Figures are in thousands) | Actual 2024/25 | Forecast 2025/26 | Budget 2025/26 | Plan 2026/27 | Plan 2027/28 | Plan 2028/29 | Plan 2029/30 | Plan 2030/31 |
|---|---|---|---|---|---|---|---|---|
| CAPITAL EXPENDITURES | ||||||||
| Explosives Detection Systems (EDS) | ||||||||
| PBS | $ 38,009 | $ 49,243 | $ 59,138 | $ 61,492 | $ 57,273 | $ 50,066 | $ 44,259 | $ 38,676 |
| HBS | 21,971 | 29,255 | 37,401 | 32,862 | 29,285 | 41,352 | 49,145 | 43,348 |
| NPS | 1,118 | 530 | 2,539 | - | - | - | - | - |
| Total EDS | $ 61,098 | $ 79,028 | $ 99,078 | $ 94,354 | $ 86,558 | $ 91,418 | $ 93,404 | $ 82,024 |
| Non-EDS | ||||||||
| PBS | $ 4,141 | $ 5,626 | $ 4,807 | $ 4,083 | $ 12,105 | $ 3,695 | $ 3,276 | $ 3,821 |
| HBS | 120 | 360 | 694 | 73 | - | - | - | - |
| NPS | 127 | 9 | 63 | 487 | 458 | 441 | 467 | 454 |
| RAIC | 1,383 | 439 | 388 | 677 | 647 | 647 | 693 | 682 |
| Corporate Services | 5,270 | 11,378 | 8,515 | 9,632 | 7,412 | 6,675 | 7,627 | 7,019 |
| Total Non-EDS | $ 11,041 | $ 17,812 | $ 14,467 | $ 14,952 | $ 20,622 | $ 11,458 | $ 12,063 | $ 11,976 |
| Total Capital Expenditures | $ 72,139 | $ 96,840 | $ 113,545 | $ 109,306 | $ 107,180 | $ 102,876 | $ 105,467 | $ 94,000 |
| Proceeds on disposal and vendor credit | - | (19) | - | - | - | - | - | - |
| TOTAL | $ 72,139 | $ 96,821 | $ 113,545 | $ 109,306 | $ 107,180 | $ 102,876 | $ 105,467 | $ 94,000 |
2025/26 Financial Results
Capital expenditures are estimated to be $96.8 million, which is $16.7 million lower than the Corporate Plan budget of $113.5M. The major factors contributing to the variance are delays in several projects including the lifecycle replacement of various PBS and HBS equipment platforms. Consequently, CATSA may seek Finance Canada approval for a capital re-profile from 2025/26 to future financial periods. The potential re-profile has not been reflected in the capital budget.
Key priorities in 2025/26 capital spending include the deployment of CT technology at PBS which improves the passenger screening experience by permitting laptops and liquids, gels, and aerosols (within the 100ml limit) to remain in carry-on bags while enhancing security effectiveness, and the replacement of the existing oversize X-ray units in Class 1 airports with CT technology as part of CATSA’s lifecycle management plan.
2026/27 – 2030/31 Financial Plan Highlights
The lifecycle management of CATSA’s EDS equipment and systems is a key corporate priority and annually represents a significant portion of the capital spending. From 2026/27 - 2030/31, significant capital investments include the replacement of existing X-ray equipment with CT technology which began in 2024/25, as well as the deployment of supplemental full body scanner units in a primary position to improve security effectiveness. The capital plan also reflects an acceleration of the replacement of High-Speed HBS CT units, as well as the deployment of new screening tools to enhance CATSA’s screening operations and improve the detection capabilities of CATSA’s screening equipment including Bulk Alarm Resolution Tools and X-ray diffraction systems. Finally, CATSA’s capital plan also provides for the lifecycle management of non-EDS equipment and systems including IT network infrastructure, BPSS equipment and CCTV cameras.
The five-year plan also includes investments in innovation and the use of advanced technologies to enhance screening operations, as well as to accommodate capacity expansion at both PBS and HBS screening operations. In each deployment scenario, work will be coordinated with airport authorities to minimize disruption to screening operations.
The capital plan does not include additional funding to address requirements for the GTAA LIFT initiative which is aimed at transforming the airport into one of the most advanced, sustainable and passenger-friendly airports in the world. The plan also does not include additional funding for the planned expansion at the Montreal Trudeau International Airport. While CATSA has had preliminary discussions with the airport authorities, sufficient information is not currently available to identify specific budgetary requirements. CATSA will return to government for supplemental funding if the project requirements exceed its available funding.
As capital project delays may arise, CATSA will work with airport authorities and vendors to accommodate revised project plans. As a result, the organization may require a re-profile of funds to account for delays in capital projects.