Canadian Pacific Kansas City (CPKC) announced solid first-quarter results for 2025, demonstrating the resilience of its North American network amid challenging market conditions. The company reported revenues of $3.8 billion, an 8% increase from the same period last year.
CPKC President and CEO Keith Creel highlighted the company's performance, stating, "Our talented team of world-class railroaders executed our precision scheduled operating plan to safely and efficiently move solid freight demand to start 2025."
Key financial highlights include:
- Reported operating ratio decreased by 210 basis points to 65.3%
- Reported diluted earnings per share (EPS) increased 17% to $0.97
- Core adjusted diluted EPS rose 14% to $1.06
- Volumes, measured in Revenue Ton-Miles, increased 4%
The company also reported improvements in safety metrics, with decreases in both personal injury frequency and train accident frequency compared to the first quarter of 2024.
In a move that underscores its financial strength, CPKC's Board of Directors declared a quarterly dividend of $0.228 per share, a 20% increase from the previous dividend. Creel noted, "This dividend increase demonstrates the strength and resiliency of our operating model, and our dedication to creating value for our shareholders."
Despite the strong performance, CPKC has adjusted its 2025 earnings guidance due to increasing uncertainty created by evolving trade policies and heightened risk of economic recession. The company now expects 2025 core adjusted diluted EPS to increase between 10% and 14% versus 2024.
At its 2025 annual meeting, CPKC shareholders elected all 12 nominees to the Board of Directors, with each receiving at least 97% of votes cast. Isabelle Courville was re-appointed as Chair of the Board. The advisory vote on executive compensation received 87.74% approval, while the advisory vote on the company's approach to climate change garnered 91.66% support.
CPKC's first-quarter results, dividend increase, and annual meeting outcomes highlight the company's ability to navigate complex market conditions while maintaining operational excellence, enhancing shareholder returns, and addressing key governance and sustainability issues.
