First glance: CPKC fourth quarter financial results

CPKC Reports Q4 Financial Results

Canadian Pacific Kansas City announced that its fourth quarter revenue reached $3.9 billion, marking a 1% increase compared to the previous year. However, unadjusted earnings per share declined to $1.20 from $1.28 year-over-year.

The Calgary-headquartered railway, traded as CP on the NYSE, revealed that its core adjusted diluted earnings per share rose by 3% to $1.33, up from $1.29 in the fourth quarter of 2024.

The company achieved a record operating ratio of 58.9%, improving by 80 basis points. Additional operational milestones included all-time highs in train weight, network velocity, locomotive efficiency, and car miles per car day.

Keith Creel, president and CEO of CPKC, commented, “Our performance in both the fourth quarter and the full year highlights our ability to excel in a difficult market by focusing on factors within our control. Even with economic and trade challenges anticipated in 2025, our Precision Scheduled Railroading approach allowed us to manage expenses effectively and achieve a record core adjusted operating ratio, while also taking advantage of unique growth prospects.”

Full-Year 2025 Highlights

• Total revenue for 2025 climbed 4% to $15.1 billion, up from $14.5 billion.
• The operating ratio improved by 160 basis points to 62.8%.
• Core adjusted operating ratio reached a company-best 59.9%, a 140 basis point improvement year-over-year.

CPKC also reported a reduction in reportable injuries and accidents, achieving the lowest train accident frequency rate among Class I railroads, as recognized by the Federal Railroad Administration, for the third year running.

Outlook and Capital Spending

The company projects that core adjusted diluted EPS will see low double-digit growth compared to the 2025 figure of $4.61, supported by moderate increases in volume measured by revenue ton miles. Planned capital expenditures have been reduced by 15% to $2.65 billion year-over-year.