First look: CPKC Q4 earnings
Canadian Pacific Kansas City reported fourth quarter revenues that were 1% higher at $3.9 billion from a year ago, but saw unadjusted earnings per share fall to $1.20 from $1.28 y/y.
The Calgary-based railroad (NYSE: CP) said core adjusted diluted EPS was $1.33, up 3% from $1.29 in Q4 2024.
The operating ratio improved 80 basis points to 58.9%, a network record, along with historic marks in train weights, network speed, locomotive productivity and car miles per car day.
“Our fourth quarter and full-year results demonstrate exceptional execution in a challenging market by controlling what we could control,” said Keith Creel, CPKC president and chief executive, in a release. “Despite macroeconomic and trade policy headwinds in 2025, our Precision Scheduled Railroading model again enabled us to control costs and deliver a record core adjusted operating ratio while capitalizing on our unique growth opportunities.”
For all of 2025, revenues increased 4% to $15.1 billion from $14.5 billion, while the OR fell 160 bps to 62.8%. Core adjusted OR improved to a company record-low 59.9%, a 140 bps improvement y/y.
The railroad said reportable injuries and accidents also decreased for the year, to what it said was the lowest Federal Railroad Administration-reportable train accident frequency among Class I railroads for the third consecutive year.
The company forecast low double-digit core adjusted diluted EPS growth versus 2025 of $4.61, on mid-single digit volume growth, as measured in revenue ton miles. Capital expenditures have been trimmed 15% to $2.65 billion y/y.
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