Canadian Pacific Kansas City Limited

Latest Results (22.04.2026):

Canadian Pacific Kansas City Limited's fourth quarter 2025 results (Q4 2025) show continued operating discipline under Precision Scheduled Railroading: revenues of $3.9 billion, reported diluted EPS of $1.20 and core adjusted diluted EPS of $1.33, with a record-quarter core adjusted operating ratio of 55.9% (reported OR 58.9%). The company also reported strong full‑year 2025 results and provided 2026 guidance targeting mid-single digit volume growth and low double-digit core adjusted EPS growth.

Revenue and EPS (Q4 2025)

Revenues were $3.923 billion in Q4 2025 (freight $3.831B). Reported diluted EPS was $1.20 (down from $1.28 in Q4 2024), while core adjusted diluted EPS rose to $1.33 (from $1.29).

Margins and operating ratio

Reported operating ratio improved to 58.9% (80 bps better YoY). Core adjusted operating ratio hit a CPKC record of 55.9% in Q4 2025 (120 bps improvement YoY), reflecting cost control and productivity gains.

Full‑year 2025 highlights

Full‑year revenues rose 4% to $15.1 billion. Reported diluted EPS increased to $4.51 and core adjusted diluted EPS to $4.61 (up 8%). Full‑year reported OR improved to 62.8%; core adjusted OR was a record-low 59.9% (140 bps improvement YoY).

2026 guidance

CPKC forecasts low double‑digit core adjusted diluted EPS growth vs. 2025 ($4.61), mid‑single digit RTM (Revenue Ton Mile) growth, and capital expenditures of $2.65 billion (≈15% reduction vs. 2025). Assumed core adjusted effective tax rate: 24.75%.

Operational performance

Q4 2025 featured record train weights, improved network speed and locomotive productivity. Average train speed in Q4 was 19.5 mph and locomotive productivity rose (GTMs per operating horsepower: 168), supporting better asset utilization.

Safety

Full‑year 2025 FRA‑reportable personal injury frequency improved to 0.92 (from 0.95) and FRA‑reportable train accident frequency improved to 0.85 (from 1.01); CPKC led Class 1 railroads for the third consecutive year on lowest train accident frequency.

Cash flow, capex and capital allocation

Operating cash flow for Q4 was $1.524 billion and $5.309 billion for the year. 2025 additions to properties were $3.102 billion; 2026 capex guidance is $2.65 billion. CPKC returned cash via dividends ($0.228 per share declared in Q4; $0.874 for full year) and repurchased 37.35 million shares in 2025 for $4.019 billion under its NCIB.

Balance sheet & liquidity

As of Dec 31, 2025 total assets were $85.945 billion and total equity $46.825 billion. Long‑term debt was $19.948 billion (plus $3.240B maturing within one year). Cash and cash equivalents were $184 million at year‑end.

Non‑GAAP adjustments and one‑offs

Full‑year 2025 included a $333 million gain on sale of an equity investment and acquisition‑related costs and KCS purchase accounting that affected GAAP EPS. Management emphasizes core adjusted metrics (which exclude these items and KCS purchase accounting) when discussing ongoing performance.