“Our excellent second-quarter results showcase how the advantages of this unrivaled North American network are being realized,” said CPKC President and CEO Keith Creel during a financial report on July 30. The Canadian Class I railroad—formed last year through the combination of Canadian Pacific and Kansas City Southern (KCS)—will “continue this momentum,” he said, as it is “well on track to deliver on our guidance for the year.”
For the three-months ended June 30, 2024, CPKC posted revenues of $3.6 billion, up 8% on a CPKC combined basis1 from the prior-year period; diluted earnings per share (EPS) of $0.97, down 32% from the prior-year period’s $1.42; and core adjusted combined diluted EPS1,2 of $1.05, up 27% from the prior-year period’s $0.83.
Among CPKC’s other second-quarter 2024 results1:
- Reported operating ratio (OR) decreased by 550 basis points to 64.8% from 70.3% in second-quarter 2023.
- Core adjusted combined OR2 dropped 280 basis points to 61.8% from 64.6% in second-quarter 2023.
- Volumes, as measured in Revenue Ton-Miles3 (RTMs), increased 6% on a combined basis over second-quarter 2023.
- Federal Railroad Administration (FRA)-reportable train accident frequency fell to 0.77 from 0.80 in second-quarter 2023 on a combined basis4 .
- FRA-reportable personal injury frequency decreased to 0.81 from 1.31 in second-quarter 2023 on a combined basis.
- Train speed came it at 19.3 mph, up 6% from second-quarter 2023.
- Terminal Dwell reached 9.5 hours, down 9% from second-quarter 2023.
“We delivered robust revenue growth driven by synergies, along with strong operating and safety performance,” Creel said.
2024 Outlook
CPKC reported that for 2024, it will see:
- “Double-digit core adjusted combined diluted EPS growth vs. 2023 core adjusted combined diluted EPS of $3.84.”
- Capital expenditures of $2.75 billion.
“Looking ahead, we are confident in our strategy and our team’s ability to continue this momentum,” Creel said. “We are well on track to deliver on our guidance for the year, leveraging our strong operational foundation to deliver sustainable growth and value for our stakeholders. Together, we are moving forward with a clear vision of success for all stakeholders and an industry leading team in place to execute it.”
For more details on CPKC financial results, visit the railroad’s Investor Resources Webpage and download quarterly earnings presentation below. Also, for an update on CPKC, CN and Teamsters Canada Rail Conference bargaining and the possibility of a strike next month, which Keith Creel discussed July 30, click here.
1. “The results of Kansas City Southern (KCS) are included on a consolidated basis from April 14, 2023, the date we acquired control,” CPKC reported. “From December 14, 2021 to April 13, 2023, we recorded our interest in KCS under the equity method of accounting.”
2. “These measures have no standardized meanings prescribed by accounting principles generally accepted in the United States of America (‘GAAP’) and, therefore, may not be comparable to similar measures presented by other companies,” CPKC reported.
3. “These operating statistics represent combined operating information to illustrate the estimated effects of the acquisition for the second quarter ended June 30, 2023, as if the acquisition closed on January 1, 2022,” CPKC reported. “For the three months ended June 30, 2024, KCS was consolidated.”
4. “FRA statistics for Q2 2023 reflect Canadian Pacific (CP) and KCS results on a combined basis,” CPKC reported. “The second-quarter 2023 FRA-reportable train accident frequency and FRA-reportable personal injury frequency on a combined basis were previously reported as 0.79 and 1.25 respectively. These restatements reflect new information available within a specified period as stipulated by the FRA but that exceeds CPKC’s financial reporting timeline.”
