CPKC drove up revenue and earnings, ratcheted down operating ratio in Q2

There are several reasons why Canadian Pacific Kansas City had fairly resilient financial performance in the second quarter. 

Among them: Solid base demand and synergies drove differentiated volume performance, and the Class I created new business growth opportunities through its "entrepreneurial" approach, according to CPKC. 

Yesterday, the Class I announced its Q2 revenue increased 3% to C$3.7 billion, revenue ton miles rose 7% to 55.5 million, core adjusted earnings per share (EPS) climbed 7% to C$1.12 and core adjusted operating ratio improved 110 basis points to 60.7 compared with Q2 2024 results. Operating expenses inched up 1% to C$2.4 billion. 

The railroad was able to realize more of the value created by its "unrivalled North American network" in the quarter, said CPKC President and CEO Keith Creel in a press release. In addition, challenges were overcome in portions of the Class I’s southern U.S. network following its complex system integration, he added.  

“We are executing our strategy by capitalizing on a range of opportunities unique to our three-nation network, opportunities to grow our business by supporting our customers in reaching new markets," said Creel. “Across our network, we are focused on delivering the service that our customers expect as we carry growing momentum into the second half of 2025." 

For the remainder of 2025, CPKC expects revenue ton miles to grow by a mid-single-digits percentage and core adjusted EPS to grow 10% to 14%. Capital expenditures are projected to total C$2.9 billion for the year. 

“We remain confident in our ability to deliver on our full-year guidance while realizing sustainable growth that provides value for our shareholders, customers and all stakeholders,” said Creel.