#Canada #Calgary #Canadian Pacific #CPKC #Rail Service

CPKC Reports Strong First Quarter Results for 2025

On April 30, 2025, Canadian Pacific Kansas City (CPKC) announced remarkable financial results for the first quarter of the year, underscoring its operational efficiency and robust demand in the rail industry. The company reported revenues of $3.8 billion, an increase of 8% from $3.5 billion in the same period last year.

Highlights of the First Quarter

With a diluted earnings per share (EPS) reaching $0.97, CPKC demonstrated significant growth from the $0.83 reported in Q1 2024. Furthermore, the core adjusted diluted EPS increased to $1.06 from $0.93 in the previous year, further illustrating the company's solid performance amidst a turbulent market landscape.

Keith Creel, President and CEO of CPKC, attributed this success to the dedicated efforts of the company’s skilled workforce and the execution of its precision scheduling operating plan. He emphasized, "Our talented team of world-class railroaders executed our precision scheduled operating plan to safely and efficiently move solid freight demand to start 2025."

Financial Performance Metrics:

• - Revenue: $3.8 billion (up 8% from Q1 2024)
• - Diluted EPS: $0.97 (up 17% YoY)
• - Core Adjusted Diluted EPS: $1.06 (up 14% YoY)
• - Operating Ratio (OR): 65.3% (down from 67.4% in Q1 2024)
• - Volume in Revenue Ton-Miles: Increased by 4%

Safety Improvements

In terms of safety, CPKC has reported a decrease in the Federal Railroad Administration (FRA)-reportable personal injury frequency, falling to 0.98 from 1.14, and train accident frequency decreased to 0.38 compared to 0.90 in Q1 2024. Creel noted these safety improvements reflect the company's commitment to operational excellence and risk management.

Challenges Ahead

Despite the favorable results, CPKC has acknowledged the ongoing uncertainties arising from evolving trade policies and potential economic recession risks, prompting a conservative adjustment to its earnings guidance for 2025. The company now anticipates a core adjusted diluted EPS growth between 10% and 14% over the previous year’s $4.25.

Creel stated, "We remain focused on controlling what we can control, however, the increasing uncertainty created by evolving trade policies and the heightened risk of economic recession make it prudent to amend our 2025 earnings guidance at this time."

A Vision for Growth

Moving forward, CPKC remains committed to providing premium service and advancing North American trade by supporting new customer solutions and strengthening its operational footprint. With a network spanning approximately 20,000 route miles and a dedicated workforce of 20,000 railroaders, CPKC is well-positioned to navigate the challenges posed by a dynamic market while continuing to meet customer demands.

In the global context of rail transport, CPKC's comprehensive services highlight its strategic role in enhancing logistics and supply chain capacities across Canada, the United States, and Mexico. As it progresses through 2025, CPKC's focus remains on operational resilience and customer service excellence.

For more information, CPKC encourages stakeholders to access its investor relations portal for detailed insights on their robust performance during the first quarter and their strategic initiatives moving forward.