CPKC 4Q24: ‘Strong’ Results; Positioned to ‘Accelerate Growth’ in 2025
CPKC reported revenues of $3.9 billion in fourth-quarter 2024; diluted earnings per share (EPS) increased to $1.28 from $1.10 in fourth-quarter 2023; and core adjusted combined diluted EPS increased 9% to $1.29 from $1.18 in fourth-quarter 2023.
“Thanks to our 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,” added Creel.
Among CPKC’s other fourth-quarter 2024 highlights:
- Reported operating ratio (OR) decreased by 210 basis points to 59.7% from 61.8% in fourth-quarter 2023.
- Core adjusted combined OR decreased by 160 basis points to 57.1% from 58.7% in fourth-quarter 2023.
- Federal Railroad Administration (FRA)-reportable personal injury frequency decreased to 0.84 from 1.13 in fourth-quarter 2023.
- FRA-reportable train accident frequency decreased to 1.03 from 1.08 in fourth-quarter 2023.
CPKC’s full-year 2024 results:
- Reported OR decreased by 60 basis points to 64.4% from 65.0% in 2023.
- Core adjusted combined OR decreased by 70 basis points to 61.3% from 62.0% in 2023.
- Reported diluted EPS decreased to $3.98 from $4.21 in 2023.
- Core adjusted combined diluted EPS increased 11% to $4.25 from $3.84 in 2023.
- FRA-reportable personal injury frequency decreased to 0.95 from 1.15 in 2023.
- FRA-reportable train accident frequency increased to 1.01 from 0.99 in 2023.
In 2024, for the second consecutive year, CPKC led the industry with the lowest FRA-reportable train accident frequency among Class I railroads, “building on Canadian Pacific’s legacy of 17 consecutive years of industry leadership,” according to CPKC.
“Looking forward to 2025, we expect another year of strong earnings growth consistent with CPKC’s multi-year guidance provided at our 2023 Investor Day,” Creel added. “We continue to do what we said we would do, staying focused on safety and growth. The opportunities ahead of us are unique as we have the team, the network and the capacity to deliver strong results for all stakeholders.”
DOWNLOAD CPKC’s 4Q24 EARNINGS REVIEW PRESENTATION BELOW:
In related news, CPKC announced Jan. 28 that it has reached a tentative four-year agreement with the Teamsters Canada Rail Conference Maintenance of Way Employees Division (TCRC-MWED) representing approximately 2,300 engineering service employees in Canada.
“Working together with the TCRC-MWED, we are pleased to have reached an agreement that is good for our railroaders and their families across Canada,” said Creel. “With another tentative collective agreement completed at the negotiating table, we can continue our work safely and efficiently serving our customers and delivering for the Canadian economy.”
Details of the tentative collective agreement will not be released publicly until the agreement has been ratified.
