Canadian Pacific Railway ( (CP) ) has released its Q4 earnings. Here is a breakdown of the information Canadian Pacific Railway presented to its investors.
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Canadian Pacific Kansas City (CPKC) is a transnational railway company that operates a 20,000-mile rail network across Canada, the United States, and Mexico, providing freight transportation services and logistics solutions to various industries. Headquartered in Calgary, Alberta, CPKC is the only railway that links Canada, the U.S., and Mexico with a single line, offering unparalleled access to major North American ports.
In its latest earnings report, CPKC announced strong fourth-quarter results for 2024, with a revenue increase of 3% to $3.9 billion and a 16% increase in operating income to $5.179 billion for the full year. The company reported a diluted earnings per share (EPS) of $1.28 for the quarter, up from $1.10 in Q4 2023, and core adjusted combined diluted EPS of $1.29, reflecting a 9% increase. Safety performance improved, with a decrease in personal injury and train accident frequencies.
The company achieved significant financial milestones, including a reduction in the reported operating ratio to 59.7% in Q4 2024, and a further decrease in the core adjusted combined operating ratio to 57.1%. Despite a decrease in reported full-year diluted EPS, core adjusted combined diluted EPS grew by 11% to $4.25. The acquisition of Kansas City Southern has been fully integrated, contributing to the year’s performance and setting a foundation for future growth.
Looking ahead to 2025, CPKC’s management anticipates continued strong earnings growth between 12% to 18%, targeting mid-single-digit volume growth in Revenue Ton Miles. The company plans capital expenditures of $2.9 billion, driven by expected currency exchange rate changes, and remains committed to safety and operational efficiency to deliver value to stakeholders.
CPKC’s strategic positioning and network capabilities make it well-prepared to capitalize on emerging opportunities, ensuring its path towards sustained growth and industry leadership in the coming years.
