CPKC lowers financial forecast amid trade uncertainty, despite Q1 profit increase

Locomotives sit idol at the CPKC rail yard in Calgary, Alta., Aug. 22, 2024.THE CANADIAN PRESS/Jeff McIntosh

Canadian Pacific Kansas City Ltd. says it is reining in its financial forecast for the year due to uncertainty around U.S. tariffs and trade policy.

The railway says it expects adjusted diluted earnings per share to increase between 10 and 14 per cent this year, rather than 12 to 18 per cent as previously predicted.

The downgraded guidance comes despite a 17 per cent increase in net income to $909 million in CPKC’s latest quarter versus $774 million in the same period a year earlier.

The Calgary-based company says revenues grew eight per cent to $3.80 billion in the three months ended March 31 from $3.52 billion the year before.

Diluted earnings rose to 97 cents per share from 83 cents per share.

Canadian Pacific CEO Keith Creel says increasing uncertainty fuelled by shifting tariffs and a risk of recession prompted more moderate earnings expectations for the company.

This report by The Canadian Press was first published April 30, 2025.

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Christopher Reynolds, The Canadian Press