- CPKC reports 8% increase in Q1 2025 revenue to $3.8 billion.
- Diluted EPS rises 17% to $0.97; core adjusted EPS up 14% to $1.06.
- 2025 EPS growth projection adjusted down to 10-14% due to trade and recession risks.
Canadian Pacific Kansas City (CPKC) has announced a robust start to 2025, with first-quarter revenues climbing to $3.8 billion, marking an 8% increase from the same quarter in 2024. The company's reported diluted earnings per share (EPS) surged by 17% to $0.97, while core adjusted diluted EPS rose by 14% to $1.06, driven by solid freight demand and enhanced operational efficiency.
Key operational improvements include a drop in the operating ratio to 65.3%, a 210-basis point reduction compared to the previous year, and a decrease in the core adjusted operating ratio to 62.5%. Freight volumes, as measured in Revenue Ton-Miles, witnessed a 4% increase, showcasing the company's effectiveness in managing shipping volumes alongside cost control measures.
Despite the strong quarterly performance, CPKC has adjusted its full-year 2025 outlook due to ongoing trade policy uncertainties and recession risks. The company now expects core adjusted diluted EPS to grow between 10% and 14%, a revision from its previous forecast. CEO Keith Creel highlighted the resiliency of CPKC's North American network and its commitment to safe and efficient operations amid challenging market conditions.
Notable safety improvements were recorded, with the frequency of personal injuries and train accidents both significantly reduced, reflecting CPKC's focus on enhancing service reliability and reducing operational risks.
