CANADIAN PACIFIC KANSAS CITY LTD/CN (CP) Earnings History

CANADIAN PACIFIC KANSAS CITY LTD/CN - Q4 2025 EarningsMet

Filed at: Jan 28, 2026, 4:21 PM EST|Read from source

EXECUTIVE SUMMARY

CPKC reported solid full-year results driven by strong execution of its Precision Scheduled Railroading model, leading to record operating ratios and revenue growth. The company navigated macroeconomic headwinds by controlling costs and capitalizing on unique growth opportunities, positioning itself for continued differentiated results in 2026.

POSITIVE HIGHLIGHTS

  • •

    Full-year revenues increased 4% to $15.1 billion from $14.5 billion in 2024.

    positive
  • •

    Reported operating ratio improved 160 bps to 62.8% for the full year.

    positive
  • •

    Core adjusted operating ratio improved to a record-low 59.9% for the full year, a 140 bps improvement.

    positive
  • •

    Reported diluted EPS increased to $4.51 from $3.98 in 2024.

    positive
  • •

    Core adjusted diluted EPS increased 8% to $4.61 from $4.25 in 2024.

    positive
  • •

    CPKC led the industry with the lowest FRA-reportable train accident frequency among Class 1 railroads for the third consecutive year.

    positive

CONCERNS & RISKS

  • •

    Fourth-quarter reported diluted EPS decreased to $1.20 from $1.28 in Q4 2024.

    attention
  • •

    Non-freight revenues decreased 7% year-over-year for the full year.

    attention
  • •

    FX adjusted revenue growth for the full year was 3%, with a significant portion of this growth attributed to FX tailwinds.

    attention
  • •

    Capital expenditures are projected to be $2.65 billion in 2026, a reduction of approximately 15% from 2025, which could impact future growth.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$3.92B
N/A
Net Income
Quarterly
$1.08B
-10.2%
Prior year: $1.20B
Annual (YTD)
$4.14B
N/A
Prior year: $3.71B
EPS (Diluted)
Quarterly
$1.20
-6.3%
Prior year: $1.28
Annual (YTD)
$4.51
N/A
Prior year: $3.98
Operating Income
Quarterly
$1.61B
N/A
EPS (Basic)
Quarterly
$1.20
-7.0%
Prior year: $1.29
Annual (YTD)
$4.52
N/A
Prior year: $3.98

MARGIN ANALYSIS

Operating Margin
Current Quarter
41.1%
Prior Year
40.3%
YoY Change
+84 bps
Net Margin
Current Quarter
27.5%
Prior Year
30.9%
YoY Change
-349 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q4 2025 2025

VISUAL OVERVIEW

|
Freight
0.0%
N/A
Non-freight
0.0%
N/A

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
Freight
N/A———
Non-freight
N/A———
Total Revenue$0.00M——100.0%

Segment performance shows business unit health and growth drivers.

MANAGEMENT GUIDANCE

FY2026

core adjusted diluted EPS growth
"Low double-digit growth vs 2025 core adjusted diluted EPS of $4.61"
volume growth
"Mid-single digit growth, as measured in Revenue Ton Miles"
capital expenditures
2,650,000,000
"Reduction of approximately 15% from 2025"

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

MANAGEMENT COMMENTARY

Our fourth quarter and full year results demonstrate exceptional execution in a challenging market by controlling what we could control.

— CANADIAN PACIFIC KANSAS CITY LTD/CN, Q4 2025 2025 Earnings Call

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.

— CANADIAN PACIFIC KANSAS CITY LTD/CN, Q4 2025 2025 Earnings Call

Safety is at the core of everything that we do, and our performance reflects the dedication of our railroaders and their unwavering focus on operational excellence.

— CANADIAN PACIFIC KANSAS CITY LTD/CN, Q4 2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

FRA-reportable personal injury frequency
0.9
-3.2% YoY
Prior year: 0.9
per 200,000 hours worked
FRA-reportable train accident frequency
0.8
-15.8% YoY
Prior year: 1.0
per million train miles

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.

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