CPKC posts higher revenue, lower income in Q1

Canadian Pacific Kansas City today reported first-quarter 2024 revenue of CA$3.5 billion and net income of CA$774 million compared with CA$2.3 billion and CA$800 million, respectively, a year ago.

CPKC reported Q1 2024 diluted earnings per share (EPS) of 83 cents, compared to 86 cents a year ago, and a Q1 2024 core adjusted combined diluted EPS of 93 cents, up from 90 cents a year ago.

CPKC's Q1 2024 operating ratio was 67.4%, up from $63.4% in Q1 2023.

Q1 volumes, as measured in revenue ton-miles, climbed 1% on a combined basis; the Federal Railroad Administration-reportable train accident frequency rose to 0.89 from 0.71 on a combined basis; and the FRA-reported personal injury frequency increased to 1.15 from 1.12 on a combined basis.

As the company issued its Q1 results, it also marked one year as a combined company following the merger of Canadian Pacific and Kansas City Southern in 2023. CP acquired control of KCS on April 14, 2023.

"One year into our historic combination, I am proud of what our dedicated family of railroaders has accomplished as we deliver on the benefits of our unrivaled network — spurring competition, increasing safety and connecting more markets for our customers," said CPKC President and CEO Keith Creel in a press release. "Today’s results show the success of our efforts to drive growth as the only railway connecting Canada, the United States and Mexico."

CPKC's performance in the quarter, combined with an improving demand environment, has positioned the company to deliver on its 2024 guidance, Creel said.

"As we enter the second year of our forever story, we are focused on safely executing on the unique and undeniable opportunities this franchise creates and delivering long-term value for our employees, customers and shareholders," he added.