CPKC lifts revenue on strong grain volumes as profits slip amid trade headwinds

CANADA – Canadian Pacific Kansas City (CPKC) has reported fourth-quarter revenue of C$3.9 billion (US$2.9 billion), a 1% increase year on year, despite operating in what the company described as a difficult economic and trade environment in 2025.

Headquartered in Calgary, Alberta, CPKC is the only single-line transnational railway linking Canada, the United States and Mexico, operating across approximately 20,000 route miles and serving key agricultural, industrial and energy markets across North America.

While revenues edged higher, profitability declined, reflecting the impact of trade uncertainty and broader macroeconomic pressures on the North American rail sector.

Diluted earnings per share (EPS) for the quarter fell 10% to C$1.20 (US$0.89), compared with C$1.28 in the same period of 2024.

Adjusted diluted EPS, however, rose to C$1.33 per share (US$0.98), up from C$1.29 a year earlier, supported by tighter cost control and operational efficiency.

“Our fourth-quarter and full-year results demonstrate exceptional execution in a challenging market by controlling what we could control,” said Keith Creel, president and chief executive officer of CPKC.

“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.”

During a conference call with analysts on Jan. 28, Creel said the ongoing trade war with the United States had already had a measurable impact on the company’s performance.

“We’ve already absorbed a pretty significant hit from all the uncertainty, I think about C$200 million of revenue impact, maybe higher,” he said, equivalent to roughly US$148 million.

Despite these headwinds, CPKC reported record fourth-quarter operating metrics across several indicators, including train weights, network speed, locomotive productivity and car miles per car day.

The company said these results reflected disciplined execution and network optimization during a period of volatile demand and policy uncertainty.

For the full year 2025, CPKC reported revenue of C$15.1 billion (US$11.2 billion), up 4% from C$14.5 billion (US$10.7 billion) in 2024.

Diluted EPS increased 13% year on year to C$4.51 (US$3.34), while core adjusted diluted EPS rose 8% to C$4.61 (US$3.41).

Bulk shipments played a central role in driving annual revenue growth, supported by a record Canadian grain harvest.

The company said increased grain shipments from the United States to Mexico were a key factor behind revenue growth in the fourth quarter, highlighting the importance of its north–south corridor.

In total, CPKC originated 158,000 grain carloads in 2025, up 17% from average levels, underscoring strong demand from the agriculture sector.

Looking ahead, CPKC said it remains bullish on grain shipment volumes in the first half of 2026, citing expectations of stronger harvests and new crush capacity coming on stream across North America.

“Looking ahead to 2026, record harvests and a pipeline of unique growth opportunities position this company to continue producing differentiated results,” Creel said.

The company also emphasized its safety record, noting that in 2025, for the third consecutive year, CPKC led the industry with the lowest FRA-reportable train accident frequency among Class I railroads.

 “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.

Separately from the earnings release, CPKC announced board-level changes as part of its ongoing succession planning.

Gordon Trafton, a current board member, has been appointed vice chair of the board. Marc Parent was appointed to the board effective Jan. 27, while Kate Stevenson has been nominated to stand for election as a director at CPKC’s Annual General Meeting of Shareholders in April.

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