CALGARY, AB, Jan. 28, 2026 /PRNewswire/ – Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) today announced its fourth-quarter results, including revenues of $3.9 billion, diluted earnings per share (EPS) of $1.20 and core adjusted diluted EPS1 of $1.33.
Fourth-quarter 2025 results
* Revenues increased one percent to $3.9 billion
* Reported operating ratio (OR) decreased 80 basis points (bps) to 58.9 percent, a CPKC record
* Record CPKC core adjusted OR of 55.9 percent, a 120 bps improvement
* Reported diluted EPS decreased to $1.20 from $1.28 in Q4 2024
* Core adjusted diluted EPS increased three percent to $1.33 from $1.29 in Q4 2024
* Record CPKC Q4 operating metrics in train weights, network speed, locomotive productivity and car miles per car day
“Our fourth quarter and full year results demonstrate exceptional execution in a challenging market by controlling what we could control,” said Keith Creel, CPKC President and Chief Executive Officer. “Despite macroeconomic and trade policy headwinds in 2025, our Precision Scheduled Railroading model again enabled us to control costs and deliver a record core adjusted operating ratio while capitalizing on our unique growth opportunities.”
Full-year 2025 results
* Revenues increased four percent to $15.1 billion from $14.5 billion in 2024
* Reported OR decreased 160 bps to 62.8 percent
* Core adjusted OR improved to a CPKC record-low 59.9 percent, a 140 bps improvement year over year
* Reported diluted EPS increased to $4.51 from $3.98 in 2024
* Core adjusted diluted EPS increased eight percent to $4.61 from $4.25 in 2024
* Federal Railroad Administration (FRA)-reportable personal injury frequency decreased to 0.92 from 0.95 in 2024
* FRA-reportable train accident frequency decreased to 0.85 from 1.01 in 2024
In 2025, for the third consecutive year, CPKC led the industry with the lowest FRA-reportable train accident frequency among Class 1 railroads, building on Canadian Pacific’s legacy of 17 consecutive years of industry leadership.
“Safety is at the core of everything that we do, and our performance reflects the dedication of our railroaders and their unwavering focus on operational excellence,” Creel added. “Looking ahead to 2026, record grain harvests and a pipeline of unique growth opportunities position this company to continue producing differentiated results.”
Full-year 2026 Guidance
* Low double-digit core adjusted diluted EPS growth versus 2025 core adjusted diluted EPS of $4.61
* Mid-single digit volume growth, as measured in Revenue Ton Miles
* Capital expenditures of $2.65 billion, a reduction of approximately 15% from 2025
CPKC’s guidance is based on the following key assumptions:
* Core adjusted effective tax rate of 24.75 percent
* Other components of net periodic benefit recovery will be $441 million in 2026
1
These measures have no standardized meanings prescribed by accounting principles generally accepted in the United States of America (“GAAP”) and, therefore, may not be comparable to similar measures presented by other companies. For information regarding non-GAAP measures including reconciliations and forward-looking non-GAAP measures, see attached supplementary schedule of Non-GAAP Measures.
Conference Call Details
CPKC will discuss its results with the financial community in a conference call beginning at 4:30 p.m. ET (2:30 p.m. MT) on January 28, 2026.
Conference Call Access
Canada and U.S.: 800-245-3047
International: 203-518-9765
*Conference ID: CPKCQ425
Callers should dial in 10 minutes prior to the call.
Webcast
We encourage you to access the webcast and presentation material in the Investors section of CPKC’s website at investor.cpkcr.com.
A replay of the fourth-quarter conference call will be available through Feb. 4, 2026, at 800-839-5125 (Canada/U.S.) or 402-220-1502 (International).
Forward-looking statements
This news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws in both the U.S. and Canada (collectively, “forward-looking statements”). Forward-looking statements include, but are not limited to, statements concerning expectations, beliefs, plans, goals, objectives, assumptions and statements about possible future events, conditions, and results of operations or performance. Forward-looking statements may contain statements with the words or headings such as “financial expectations”, “key assumptions”, “anticipate”, “believe”, “expect”, “project”, “estimate”, “forecast”, “plan”, “intend”, “target”, “will”, “outlook”, “guidance”, “should” or similar words suggesting future outcomes. All statements other than statements of historical fact may be forward-looking statements. This news release contains forward-looking statements concerning, but not limited to, our ability to deliver on our financial guidance for 2026, our ability to deliver on our long-term value proposition, strategic initiatives and investments, the success of our business and our customers, the realization of anticipated benefits and synergies of the CP-KCS combination, and the opportunities arising therefrom, our operations, priorities and plans, anticipated financial and operational performance, business prospects and demand for our services and growth opportunities.
The forward-looking statements contained in this news release are based on current expectations, estimates, projections and assumptions, having regard to CPKC’s experience and its perception of historical trends, and include, but are not limited to, expectations, estimates, projections and assumptions relating to: changes in business strategies; North American and global economic growth and conditions; commodity demand growth; sustainable industrial and agricultural production; commodity prices and interest rates; foreign exchange rates; core adjusted effective tax rates; performance of our assets and equipment; sufficiency of our budgeted capital expenditures in carrying out our business plan; geopolitical conditions; applicable laws, regulations and government policies, including, without limitation, those relating to regulation of rates, tariffs, import/export, trade, taxes, wages, labour and immigration; the availability and cost of labour, services and infrastructure; labour disruptions; the satisfaction by third parties of their obligations to CPKC; and carbon markets, evolving sustainability strategies, and scientific or technological developments. Although CPKC believes the expectations, estimates, projections and assumptions reflected in the forward-looking statements presented herein are reasonable as of the date hereof, there can be no assurance that they will prove to be correct. Current conditions, economic and otherwise, render assumptions, although reasonable when made, subject to greater uncertainty.
Undue reliance should not be placed on forward-looking statements as actual results may differ materially from those expressed or implied by forward-looking statements. By their nature, CPKC’s forward-looking statements involve numerous inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including, but not limited to, the following factors: changes in business strategies and strategic opportunities; general Canadian, U.S., Mexican and global social, economic, political, credit and business conditions; risks associated with agricultural production such as weather conditions and insect populations; the availability and price of energy commodities; the effects of competition and pricing pressures, including competition from other rail carriers, trucking companies and maritime shippers in Canada, the U.S. and Mexico; North American and global economic growth and conditions; industry capacity; shifts in market demand; changes in commodity prices and commodity demand; uncertainty surrounding timing and volumes of commodities being shipped by CPKC; inflation; geopolitical instability; changes in laws, regulations and government policies, including, without limitation, those relating to regulation of rates, tariffs, import/export, trade, wages, labour and immigration; changes in taxes and tax rates; potential increases in maintenance and operating costs; changes in fuel prices; disruption of fuel supplies; uncertainties of investigations, proceedings or other types of claims and litigation; compliance with environmental regulations; labour disputes; changes in labour costs and labour difficulties; risks and liabilities arising from derailments; transportation of dangerous goods; timing of completion of capital and maintenance projects; sufficiency of budgeted capital expenditures in carrying out business plans; services and infrastructure; the satisfaction by third parties of their obligations; currency and interest rate fluctuations; exchange rates; effects of changes in market conditions and discount rates on the financial position of pension plans and investments; trade restrictions, including the imposition of any tariffs, or other changes to international trade arrangements; the effects of current and future multinational trade agreements on or other developments affecting the level of trade among Canada, the U.S. and Mexico; climate change and the market and regulatory responses to climate change; anticipated in-service dates; success of hedging activities; operational performance and reliability; customer, regulatory and other stakeholder approvals and support; regulatory and legislative decisions and actions; the adverse impact of any termination or revocation by the Mexican government of Kansas City Southern de México, S.A. de C.V.’s concession; public opinion; various events that could disrupt operations, including severe weather, such as droughts, floods, avalanches, volcanism and earthquakes, and cybersecurity attacks, as well as security threats and governmental response to them, and technological changes; acts of terrorism, war or other acts of violence or crime or risk of such activities; insurance coverage limitations; material adverse changes in economic and industry conditions; the outbreak of a pandemic or contagious disease and the resulting effects on economic conditions; the demand environment for logistics requirements and energy prices; restrictions imposed by public health authorities or governments; fiscal and monetary policy responses by governments and financial institutions; disruptions to global supply chains; the realization of anticipated benefits and synergies of the CP-KCS transaction and the timing thereof; the satisfaction of the conditions imposed by the U.S. Surface Transportation Board in its March 15, 2023 decision; the successful integration of KCS into the Company; the focus of management time and attention on the CP-KCS integration and other disruptions arising from the CP-KCS integration; estimated future dividends; financial strength and flexibility; debt and equity market conditions, including the ability to access capital markets on favourable terms or at all; cost of debt and equity capital; improvement in data collection and measuring systems; industry-driven changes to methodologies; and the ability of the management of CPKC to execute key priorities, including those in connection with the CP-KCS transaction. The foregoing list of factors is not exhaustive. These and other factors that could cause actual results to differ materially from those described in the forward-looking statements contained in this news release are detailed from time to time in reports filed by CPKC with securities regulators in Canada and the United States, which can be accessed on SEDAR+ (www.sedarplus.ca) and EDGAR (www.sec.gov). Reference should be made to “Part I – Item 1A – Risk Factors” and “Part II -Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Forward-Looking Statements” in CPKC’s annual report on Form 10-K and “Part II – Item 1A – Risk Factors” and “Part I – Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Forward-Looking Statements” in the Company’s interim reports on Form 10-Q.
The forward-looking statements contained in this news release are made as of the date hereof. Except as required by law, CPKC undertakes no obligation to update publicly or otherwise revise any forward-looking statements, or the foregoing assumptions and risks affecting such forward-looking statements, whether as a result of new information, future events or otherwise.
About CPKC
With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line transnational railway linking Canada, the United States and México, with unrivaled access to major ports from Vancouver to Atlantic Canada to the Gulf Coast to Lázaro Cárdenas, México. Stretching approximately 20,000 route miles and employing 20,000 railroaders, CPKC provides North American customers unparalleled rail service and network reach to key markets across the continent. CPKC is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpkcr.com to learn more about the rail advantages of CPKC. CP-IR
FINANCIAL INFORMATION
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
For the three months
ended December 31
For the year ended
December 31
(in millions of Canadian dollars, except share and per share data)
2025
2024
2025
2024
Revenues
Freight
$ 3,831
$ 3,801
$ 14,776
$ 14,223
Non-freight
92
73
302
323
Total revenues
3,923
3,874
15,078
14,546
Operating expenses
Compensation and benefits
621
619
2,581
2,565
Fuel
430
459
1,731
1,802
Materials
112
116
474
406
Equipment rents
97
94
408
347
Depreciation and amortization
519
488
2,019
1,900
Purchased services and other
531
538
2,256
2,347
Total operating expenses
2,310
2,314
9,469
9,367
Operating income
1,613
1,560
5,609
5,179
Other income
—
(1)
(1)
(42)
Other components of net periodic benefit recovery
(94)
(87)
(415)
(352)
Net interest expense
230
203
876
801
Gain on sale of equity investment
—
—
(333)
—
Income before income tax expense
1,477
1,445
5,482
4,772
Current income tax expense
253
258
1,174
1,031
Deferred income tax expense (recovery)
147
(12)
171
28
Income tax expense
400
246
1,345
1,059
Net income
$ 1,077
$ 1,199
$ 4,137
$ 3,713
Net loss attributable to non-controlling interest
—
(2)
(4)
(5)
Net income attributable to controlling shareholders
$ 1,077
$ 1,201
$ 4,141
$ 3,718
Earnings per share
Basic earnings per share
$ 1.20
$ 1.29
$ 4.52
$ 3.98
Diluted earnings per share
$ 1.20
$ 1.28
$ 4.51
$ 3.98
Weighted-average number of shares (millions)
Basic
897.8
933.4
916.2
933.0
Diluted
898.4
934.8
917.1
934.6
Dividends declared per share
$ 0.228
$ 0.190
$ 0.874
$ 0.760
See Notes to Consolidated Financial Information.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)
For the three months
ended December 31
For the year ended
December 31
(in millions of Canadian dollars)
2025
2024
2025
2024
Net income
$ 1,077
$ 1,199
$ 4,137
$ 3,713
Net (loss) gain in foreign currency translation adjustments, net of hedging activities
(497)
2,045
(1,601)
2,622
Change in derivatives designated as cash flow hedges
(2)
1
(1)
6
Change in pension and post-retirement defined benefit plans
177
944
185
979
Other comprehensive income (loss) from equity investees
1
(1)
7
(8)
Other comprehensive (loss) income before income taxes
(321)
2,989
(1,410)
3,599
Income tax expense
(57)
(218)
(80)
(219)
Other comprehensive (loss) income
(378)
2,771
(1,490)
3,380
Comprehensive income
$ 699
$ 3,970
$ 2,647
$ 7,093
Comprehensive (loss) income attributable to non-controlling interest
(14)
61
(52)
77
Comprehensive income attributable to controlling shareholders
$ 713
$ 3,909
$ 2,699
$ 7,016
See Notes to Consolidated Financial Information.
CONSOLIDATED BALANCE SHEETS AS AT
(unaudited)
December 31
December 31
(in millions of Canadian dollars)
2025
2024
Assets
Current assets
Cash and cash equivalents
$ 184
$ 739
Accounts receivable, net
2,029
1,968
Materials and supplies
502
457
Other current assets
224
220
2,939
3,384
Investments
473
586
Properties
55,323
56,024
Goodwill
18,436
19,350
Intangible assets
2,911
3,146
Pension asset
5,129
4,586
Other assets
734
668
Total assets
$ 85,945
$ 87,744
Liabilities and equity
Current liabilities
Accounts payable and accrued liabilities
$ 2,751
$ 2,842
Long-term debt maturing within one year
3,240
2,819
5,991
5,661
Pension and other benefit liabilities
537
548
Other long-term liabilities
815
867
Long-term debt
19,948
19,804
Deferred income taxes
11,829
11,974
Total liabilities
39,120
38,854
Shareholders’ equity
Share capital
24,751
25,689
Additional paid-in capital
105
94
Accumulated other comprehensive income
1,238
2,680
Retained earnings
19,783
19,429
45,877
47,892
Non-controlling interest
948
998
Total equity
46,825
48,890
Total liabilities and equity
$ 85,945
$ 87,744
See Notes to Consolidated Financial Information.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
For the three months
ended December 31
For the year ended
December 31
(in millions of Canadian dollars)
2025
2024
2025
2024
Operating activities
Net income
$ 1,077
$ 1,199
$ 4,137
$ 3,713
Reconciliation of net income to cash provided by operating activities:
Depreciation and amortization
519
488
2,019
1,900
Deferred income tax expense (recovery)
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