CPKC(CP)2025-04-30 20:19Financial Performance - CPKC reported Q1 2025 revenues of $3.8 billion, an increase of 8% from $3.5 billion in Q1 2024[7] - Diluted EPS rose 17% to $0.97 from $0.83 in Q1 2024, while core adjusted diluted EPS increased 14% to $1.06 from $0.93[7] - Operating income for Q1 2025 was $1,317 million, compared to $1,149 million in Q1 2024, reflecting a 9% increase[111] - Net income for the three months ended March 31, 2025, was CAD 909 million, an increase of 17.4% compared to CAD 774 million for the same period in 2024[20] - Total revenues for the three months ended March 31, 2025, were CAD 3,795 million, up 7.8% from CAD 3,520 million in the same period of 2024[28] - Basic earnings per share rose by 18% to $0.98, up from $0.83 in the same quarter last year[78] - Core adjusted diluted EPS for Q1 2025 is projected at $1.06, up from $0.93 in Q1 2024[105] - The company reported total freight revenues of CAD 3,727 million for the three months ended March 31, 2025, an increase of 8.8% from CAD 3,427 million in 2024[28] Operational Efficiency - Operating ratio improved, decreasing by 210 basis points to 65.3% from 67.4% in Q1 2024[7] - Total operating expenses increased by 5% to $2,478 million, compared to $2,371 million in Q1 2024[82] - Total RTMs (Revenue Ton-Miles) increased by 4% to 53,724 million in Q1 2025, up from 51,838 million in Q1 2024[82] - Average train weight increased by 5% to 9,034 tons, compared to 8,639 tons in Q1 2024[84] - Average fuel price decreased by 4% to $3.20 per gallon, down from $3.34 in the previous year[84] Safety and Compliance - The company experienced a decrease in FRA-reportable personal injury frequency to 0.98 from 1.14 in Q1 2024[7] - FRA-reportable train accident frequency decreased to 0.38 from 0.90 in Q1 2024[7] - FRA train accidents per million train-miles improved by 58% to 0.38, down from 0.90 in Q1 2024[84] Future Outlook - CPKC expects 2025 core adjusted diluted EPS to increase between 10% and 14% compared to 2024's core adjusted diluted EPS of $4.25[4] - The company anticipates mid-single digit RTM growth and a Core adjusted effective tax rate of 24.50% for 2025[98] Financial Position - Total assets increased to CAD 88,040 million as of March 31, 2025, compared to CAD 87,744 million as of December 31, 2024[18] - Cash and cash equivalents decreased to CAD 695 million at the end of March 2025, down from CAD 739 million at the end of December 2024[20] - Total liabilities decreased slightly to CAD 38,797 million as of March 31, 2025, from CAD 38,854 million as of December 31, 2024[18] - The carrying value of the company's long-term debt was CAD 21,523 million as of March 31, 2025, with a fair value of CAD 19,853 million[43] - As of March 31, 2025, the long-term debt, including long-term debt maturing within one year, is CAD 22,652 million, a slight decrease from CAD 22,728 million in 2024[115] Shareholder Actions - The company repurchased CAD 347 million worth of common shares during the three months ended March 31, 2025[21] - The company repurchased 3,480,658 common shares at a weighted-average price of CAD 107.68, totaling CAD 375 million during the three months ended March 31, 2025[50] Legal and Environmental Matters - The Company is involved in multiple legal proceedings related to the Lac-Mégantic rail accident, with claims totaling approximately $440 million for damages[61] - The Québec Minister of Sustainable Development has issued a Cleanup Order against the Company, with a Notice of Claim for $95 million pending[62] - Environmental remediation accruals as of March 31, 2025, total $258 million, with payments expected to be made over the next 10 years[75] Acquisition-Related Costs - In Q1 2025, acquisition-related costs of $20 million impacted diluted EPS by 2 cents, primarily due to restructuring and system migration expenses[91] - For 2024, acquisition-related costs totaled $112 million, negatively affecting diluted EPS by 9 cents, with significant costs in the fourth and third quarters[94] - The company continues to incur acquisition-related costs beyond the year of acquisition due to the complexity of integrating KCS[89]