CPKC Reports Strong Fourth-Quarter Results: Revenues Up, Operating Ratio Improves, and Safety Performance Enhances
Calgary, AB, Canada – Canadian Pacific Kansas City (CPKC) announced its impressive fourth-quarter financial results on January 29, 2025. The combined company reported revenues of $3.9 billion, representing a three percent increase from the previous year’s fourth quarter of $3.8 billion. The revenue growth was driven by volume growth and higher pricing.
Financial Highlights
The reported diluted earnings per share (EPS) for the quarter rose to $1.28 from $1.10 in the same period last year. Similarly, core adjusted combined diluted EPS increased by nine percent to $1.29 from $1.18. These improvements were a result of the company’s focus on operational efficiency and cost management.
Operational Performance
CPKC reported a significant decrease in both the reported operating ratio (OR) and core adjusted combined OR. The OR decreased by 210 basis points to 59.7 percent, while the core adjusted combined OR decreased by 160 basis points to 57.1 percent. These improvements demonstrate the company’s successful efforts in enhancing operational performance and reducing costs.
Safety Performance
The fourth quarter of 2024 marked a significant improvement in safety performance for CPKC. The Federal Railroad Administration (FRA)-reportable personal injury frequency decreased to 0.84 from 1.13 in the previous year’s fourth quarter, representing a 27 percent reduction. Similarly, the FRA-reportable train accident frequency dropped to 1.03 from 1.08, a decrease of 4.3 percent. These improvements reflect the company’s commitment to safety and its successful implementation of safety initiatives.
Impact on Individuals
As a shareholder, these strong financial results and operational improvements may lead to potential growth in stock value. Additionally, the focus on safety performance could positively impact the communities where CPKC operates, as fewer accidents mean fewer disruptions and potential hazards.
Impact on the World
From a global perspective, the railway industry plays a crucial role in the transportation of goods and raw materials. CPKC’s strong financial performance and operational improvements contribute to the overall stability and efficiency of the industry. Furthermore, the company’s commitment to safety performance sets a positive example for other railway companies to prioritize safety and reduce accidents.
CEO Statement
“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 Officer.
Conclusion
Canadian Pacific Kansas City’s fourth-quarter financial results demonstrate the company’s successful integration and its ability to deliver strong financial performance, operational improvements, and safety enhancements. These achievements not only benefit the company and its shareholders but also contribute positively to the railway industry and the communities where CPKC operates. Moving forward, the company will continue to focus on these key areas to maintain its competitive edge and drive growth.
- Revenues increased by three percent to $3.9 billion
- Reported operating ratio (OR) decreased by 210 basis points to 59.7 percent
- Core adjusted combined OR decreased by 160 basis points to 57.1 percent
- FRA-reportable personal injury frequency decreased to 0.84
- FRA-reportable train accident frequency decreased to 1.03
- Diluted EPS increased to $1.28
- Core adjusted combined diluted EPS increased to $1.29
- Commitment to safety performance sets a positive example for the railway industry
