Canadian Pacific Kansas City (CP) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenues rose 3% year-over-year to $3.7 billion (CAD 3.7 billion), driven by 5% volume growth and strong performance in automotive, intermodal, grain, potash, and coal.

• Diluted EPS increased 12% to $1.01; core adjusted diluted EPS rose 11% to $1.10.

• Operating ratio improved by 260 bps to 63.5%; core adjusted operating ratio improved by 220 bps to 60.7%.

• Safety metrics improved, with declines in personal injuries and train accident frequencies.

• Maintained focus on operational excellence, network integration, and double-digit earnings growth despite macro and trade headwinds.

Financial highlights

• Q3 revenue reached $3.7 billion (CAD 3.7 billion), up 3% year-over-year.

• Net income attributable to controlling shareholders was $920 million, up from $837 million in Q3 2024.

• Operating income for Q3 was $1,336 million, up 11% year-over-year; core adjusted operating income was $1,440 million.

• Year-to-date cash from operations increased 6% to $3.8 billion.

• Share repurchase program completed 91% of announced buyback, repurchasing 34.1 million shares for $3.67 billion.

Outlook and guidance

• On track to deliver 10–14% core adjusted diluted EPS growth for the year, with capex projected at $2.9 billion.

• Guidance maintained for sub-57 operating ratio and at least 10% EPS growth for the full year.

• Long-term guidance (2024–2028): high single-digit revenue growth, double-digit core adjusted EPS growth, and annual capex of $2.6–$2.8 billion.

• Effective tax rate expected at 24.5% for Q4 and full year.

• Management expects continued productivity improvements, volume growth, and integration synergies from KCS acquisition.