CPKC forecasts earnings growth in 2026 after strong 2025 results

Canadian Pacific Kansas City (CPKC) Ltd. reported fourth-quarter revenues of $3.9 billion and diluted earnings per share of $1.20, down from $1.28 a year earlier, as the railway posted record operating efficiency amid what it called a challenging market.

The company said its reported operating ratio fell 80 basis points to a record 58.9 per cent, while its core adjusted operating ratio improved to a record-low 55.9 per cent. Core adjusted diluted earnings per share rose three per cent to $1.33 from $1.29 in the fourth quarter of 2024.

“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.”

For the full year, CPKC reported revenues of $15.1 billion, up four per cent from $14.5 billion in 2024. Reported diluted earnings per share rose to $4.51 from $3.98, while core adjusted diluted earnings per share increased eight per cent to $4.61.

The railway said safety performance improved in 2025, with FRA-reportable personal injury frequency declining to 0.92 from 0.95 and train accident frequency falling to 0.85 from 1.01. CPKC said it led Class 1 railroads for the third consecutive year with the lowest FRA-reportable train accident frequency.

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

The company forecasts low double-digit growth in core adjusted diluted earnings per share in 2026, along with mid-single-digit volume growth. Capital spending is expected to total $2.65 billion, about 15 per cent lower than in 2025.