First look: CPKC earnings

Canadian Pacific Kansas City on Wednesday said first-quarter profit rose on higher revenues from increased freight on its network.

Calgary, Alberta-based CPKC (NYSE: CPKC) reported revenues increased by 8% to $3.8 billion from $3.5 billion in the year-ago quarter as freight measured in revenue ton-miles increased 4%.

Diluted earnings per share of 97 cents was 17% higher from 83 cents, while core adjusted diluted EPS of $1.06 improved by 14% from 93 cents y/y.

CPKC is the only Class I railroad that operates from Mexico, through the United States, to Canada.

The operating ratio, a key indicator of efficiency, decreased by 210 basis points to 65.3% from 67.4%. Core adjusted OR decreased 150 bps to 62.5% from 64% y/y.

The company said Federal Railroad Administration-reportable personal injury frequency decreased to 0.98 from 1.14 in the first quarter of 2024, based on on-duty injuries and illnesses per 200,000 employee-hours annually. FRA-reportable train accident frequency declined to 0.38 from 0.90.

“Our talented team of world-class railroaders executed our precision scheduled operating plan to safely and efficiently move solid freight demand to start 2025, producing strong first-quarter results amidst ongoing turbulent market and macroeconomic conditions,” said Keith Creel, CPKC president and chief executive, in a release. “These first-quarter results demonstrate the power and resiliency of our unrivaled North American network.”

The company revised its outlook due to uncertainty over tariff and trade policy. CPKC now expects 2025 core adjusted diluted EPS to increase between 10% and 14% compared to 2024 core adjusted diluted EPS of $4.25.

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