First look: CPKC Q4 earnings improve

Canadian railroad reports first full-year numbers after merger with Kansas City Southern

(Photo: CPKC)

Canadian Pacific Kansas City said fourth-quarter revenues increased to $3.9 billion from $3.8 billion a year ago, as diluted earnings per share increased to $1.28 from $1.10 in the same quarter in 2023.

The Calgary, Alberta-based company (NASDAQ: CP) said after markets closed that its operating ratio decreased by 210 basis points to 59.7% from 61.8% y/y.

“Our team finished our first full year as a combined company strong, with volume growth, improved safety performance, and solid operational execution that allowed CPKC to deliver industry-leading earnings growth in 2024,” said Keith Creel, CPKC president and chief executive, in an earnings release. 

Full-year 2024 operating ratio decreased by 60 basis points to 64.4 from 65 in 2023. Diluted earnings per share was $3.98 from $4.21 y/y.

“Looking forward to 2025, we expect another year of strong earnings growth consistent with CPKC’s multi-year guidance provided at our 2023 Investor Day,” Creel said. 

The company in 2024 forecast mid-single-digit volume growth as measured in revenue ton miles, and capital expenditures of $2.9 billion, with the increase compared to 2024 driven by a higher expected U.S.-dollar-to-Canadian-dollar conversion rate.

Find more articles by Stuart Chirls here.

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Stuart Chirls

Stuart Chirls is a journalist who has covered the full breadth of railroads, intermodal, container shipping, ports, supply chain and logistics for Railway Age, the Journal of Commerce and IANA. He has also staffed at S&P, McGraw-Hill, United Business Media, Advance Media, Tribune Co., The New York Times Co., and worked in supply chain with BASF, the world's largest chemical producer. Reach him at stuartchirls@firecrown.com.