CPKC reports higher earnings, revenues for second quarter

Signage is pictured at a Canadian Pacific Kansas City rail yard in Smiths Falls, Ont., Thursday, Aug. 22, 2024. THE CANADIAN PRESS/Sean Kilpatrick

CALGARY — Canadian Pacific Kansas City reported an increase in profits and revenues during the second quarter and maintained its current guidance.

“Looking ahead, 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,” CPKC chief executive Keith Creel said in a press release on Wednesday.

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The railroad is maintaining its most recent forecast of adjusted diluted earnings per share growth of 10 to 14 per cent in 2025, which was lowered in April from an earlier prediction of 12 to 18 per cent growth. At the time, it had cited uncertainty around U.S. tariffs and trade policy.

John Brooks, executive vice-president and chief marketing officer at CPKC, said on an earnings call that trade uncertainty is impacting its steel business.

“Essentially, our cross-border steel businesses, for all practical purposes, is shut down at this point at a 50 per cent tariff level. We’ve had to work hard to backfill and find other opportunities with those customers,” he said.

CPKC’s decision to maintain its guidance comes after Canadian National Railway Co. reported second-quarter earnings last week. CN said trade uncertainty is making it difficult for it to provide investors with an outlook.

The continent-spanning railroad, headquartered in Calgary, posted net income of $1.23 billion for the three months ended June 30, up from $903 million during the same period a year earlier.

Diluted earnings per share came in at $1.33, an increase from 97 cents.

Revenues were $3.7 billion for the period versus $3.6 billion in the second quarter of 2024.

CPKC’s operating ratio — a key metric watched by investors, where a lower number is better — decreased to 63.7 per cent from 64.8 per cent a year earlier.

The rail company also declared a quarterly dividend of 22.8 cents per outstanding common share.

In May, CPKC said an arbitrator’s ruling established two new collective bargaining agreements covering thousands of workers. It said the deals bring increased labour stability to its Canadian operations, allowing efficient and dependable service to continue for years to come.

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

Companies in this story: (TSX: CP)

The Canadian Press