In reporting first-quarter 2025 results, Canadian Pacific Kansas City (CPKC) said it is off to a “strong start,” but amended its 2025 earnings guidance based on “ongoing tariff and trade policy uncertainty.”
Revenues increased by 8% to C$3.8 billion from C$3.5 billion in 1Q24. The reported operating ratio (OR) decreased by 210 basis points to 65.3% from 67.4%. The core adjusted OR decreased 150 basis points to 62.5% from 64.0%. Reported diluted EPS increased 17% to C$0.97 from C$0.83. Core adjusted diluted EPSincreased 14% to C$1.06 from C$0.93. Volumes, as measured in Revenue Ton-Miles (RTMs), increased 4%.
CPKC also reported its Federal Railroad Administration (FRA)-reportable personal injury frequency decreased to 0.98 from 1.14 in 1Q24. The FRA-reportable train accident frequency decreased to 0.38 from 0.90.
“Our talented team of world-class railroaders executed our precision scheduled operating plan to safely and efficiently move solid freight demand to start 2025, producing strong first-quarter results amidst ongoing turbulent market and macroeconomic conditions,” said Keith Creel, CPKC President and CEO. “These first-quarter results demonstrate the power and resiliency of our unrivalled North American network.”
“We remain focused on controlling what we can control,” Creel added. “However, the increasing uncertainty created by evolving trade policies and the heightened risk of economic recession make it prudent to amend our 2025 earnings guidance at this time. CPKC’s long-term value proposition remains unchanged. We will continue to operate safely and efficiently, as we deliver on our promise to provide premium service to our customers, bring new customer solutions and products to the market, and strengthen North American trade.”
CPKC now expects 2025 core adjusted diluted EPS to increase between 10% and 14% vs. 2024 core adjusted diluted EPS of C$4.25 “as a result of the ongoing tariff and trade policy uncertainty.”
