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1/31/2024
Canadian Pacific Kansas City yesterday reported fourth-quarter 2023 revenue of CA$3.8 billion, up from $2.5 billion in Q4 2022, and diluted earnings per share (EPS) of $1.10 and core adjusted combined diluted EPS of $1.18.
The Class I posted net income of CA$1.3 billion for the quarter, down from CA$1.4 billion a year earlier. Total expenses in the quarter climbed to $2.3 billion from $1.5 billion in Q4 2022.
The operating ratio (OR) climbed 200 basis points to 61.8% while the core adjusted combed OR decreased 220 basis points to 58.7%.
CPKC's Federal Railroad Administration-reportable train accident frequency declined 23% to 1.08 on a combined basis.
"I am proud of how our team of incredible railroaders finished this transformational year with a strong fourth quarter, allowing CPKC to deliver volume growth and best-in-class earnings growth in 2023," said CPKC President and CEO Keith Creel in a press release. "Since our historic combination [with Kansas City Southern] in April 2023, our united CPKC team has steadily built momentum, bringing new competition to supply chains and creating more value for our customers, while remaining focused on service and safety."
For full-year 2023, CPKC posted an OR of 65%, up from 62.2% in 2022. The core adjusted combined OR rose to 62% from 6.17% in the previous year. EPS rose to $4.21 from $3.77 and the core adjusted combined diluted EPS rose 2% to $3.84.
In 2024, CPKC anticipates capital expenditures to total CA$2.75 billion.
"Looking forward to 2024, we are confident that our unique synergy opportunities, along with improving macro-economic conditions, can overcome a weak Canadian grain crop and position us for another strong performance this year, our first full year as a combined company," Creel added. "We stand ready to deliver on our commitments to our customers and our shareholders with long term sustainable growth."