Canadian Pacific Kansas City (CPKC) reports US$39M revenue in Q4 2024

CANADA – Canadian Pacific Kansas City (CPKC), a leading North American grain shipper, reported a fourth-quarter revenue of US$39 million for 2024, marking a 3% year-on-year increase.

The company also posted a notable rise in diluted earnings per share (EPS), which climbed to US$1.28 from US$1.10 in the same quarter of 2023. Additionally, CPKC’s operating ratio improved by 210 basis points to 59.7%, compared to 61.8% in Q4 2023.

“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, president and chief executive officer of CPKC, during a conference call with industry analysts.

Headquartered in Calgary, Alberta, Canada, CPKC operates the only single-line transnational railway connecting Canada, the United States, and Mexico. Spanning approximately 20,000 route miles, the railway plays a critical role in facilitating cross-border trade and supporting North American agricultural exports.

Creel thanked their remarkable team of railroaders and their dedication to safety, service, and efficiency.

We delivered on our commitments to customers and shareholders as we continue to drive sustainable long-term success on this unrivaled North American network.”

John Brooks, executive vice president and chief marketing officer at CPKC, highlighted the company’s record-breaking grain shipment volumes during the fourth quarter.

“Canadian grain volumes were up 18% with increased shipments to Vancouver and Thunder Bay, driven by the improved Canadian grain crop. We also saw higher volumes of Canadian grain moving to Mexico as our network continues to deliver on these new synergies,” Brooks noted.

The U.S. grain sector also contributed to the company’s strong performance, with volumes growing by 5% year-over-year.

Brooks attributed this growth to a solid harvest, steady demand, and the development of new market lanes.

“In 2024, as an example, we moved over 130 trains from legacy CP’s grain franchise to markets south of Kansas City, most of which are completely new markets for these customers,” he added.

For the full calendar year 2024, CPKC reported a decline in diluted EPS to $3.98 from $4.21 in 2023. However, core adjusted combined diluted EPS increased by 11% to $4.25 from $3.84. The company’s operating ratio for the year improved by 60 basis points to 64.4%, while the core adjusted combined operating ratio decreased by 70 basis points to 61.3%.

2025 Outlook

Looking ahead to 2025, Creel expressed optimism about continued growth. “We expect another year of strong earnings growth consistent with CPKC’s multi-year guidance provided at our 2023 Investor Day,” he said.

 “The opportunities ahead of us are unique as we have the team, the network, and the capacity to deliver strong results for all stakeholders.”

CPKC anticipates core adjusted diluted EPS to increase by 12% to 18% in 2025, with mid-single-digit volume growth as measured in revenue ton miles.

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