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CPKC reports strong Q4 2024 results, forecasts robust growth for 2025

Railway giant sees revenue increase and improved operating ratio, projects 12-18% earnings growth for coming year.

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Canadian Pacific Kansas City (CPKC) has announced its fourth-quarter results for 2024, showcasing solid performance and setting optimistic projections for 2025. The company reported a 3% increase in revenues to $3.9 billion and a significant improvement in its operating ratio.

Key highlights from the report include:

  1. Financial performance:

    • Q4 revenues rose to $3.9 billion from $3.8 billion in Q4 2023
    • Reported operating ratio improved by 210 basis points to 59.7%
    • Core adjusted combined diluted EPS increased 9% to $1.29
  2. Safety improvements:

    • FRA-reportable personal injury frequency decreased to 0.84 from 1.13 in Q4 2023
    • FRA-reportable train accident frequency reduced to 1.03 from 1.08
  3. Full-year 2024 results:

    • Core adjusted combined operating ratio improved by 70 basis points to 61.3%
    • Core adjusted combined diluted EPS increased 11% to $4.25
  4. 2025 outlook:

    • Projected core adjusted diluted EPS growth between 12% and 18%
    • Expected mid-single digit volume growth in Revenue Ton Miles
    • Planned capital expenditures of $2.9 billion

CPKC President and CEO Keith Creel attributed the strong performance to the company's "remarkable team of railroaders and their dedication to safety, service and efficiency." He emphasized that CPKC delivered on its commitments to customers and shareholders while driving sustainable long-term success.

The company's safety record is particularly noteworthy, with CPKC leading the industry in FRA-reportable train accident frequency among Class 1 railroads for the second consecutive year.

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