CPKC(US:CP)2025-10-29 22:01Financial Performance - Total revenues for Q3 2025 were $3,661 million, a 3% increase from $3,549 million in Q3 2024[83] - Diluted EPS for Q3 2025 was $1.01, up 12% from $0.90 in Q3 2024[83] - Core adjusted diluted EPS increased to $1.10, an 11% rise compared to $0.99 in Q3 2024[83] - The company reported a net income attributable to controlling shareholders of $920 million for Q3 2025, up from $837 million in Q3 2024[90] - The reported Diluted EPS for Q3 2025 was $1.01, compared to $0.90 in Q3 2024; for the nine months ended September 30, 2025, it was $3.32, up from $2.69 in 2024[197] - The Core Adjusted Diluted EPS for Q3 2025 was $1.10, compared to $0.99 in Q3 2024; for the nine months ended September 30, 2025, it was $3.28, up from $2.96 in 2024[197] Revenue Breakdown - Freight revenues for Q3 2025 were $3,589 million, a 4% increase from $3,461 million in Q3 2024[92] - Coal freight revenues for Q3 2025 increased to $255 million, up 3% from $248 million in Q3 2024, driven by higher volumes of Canadian coal[104] - Potash freight revenues for Q3 2025 rose to $167 million, a 16% increase from $144 million in Q3 2024, primarily due to higher export volumes to Vancouver and the U.S. Pacific Northwest[106] - Fertilizers and Sulphur freight revenues for Q3 2025 reached $102 million, up 12% from $91 million in Q3 2024, attributed to higher volumes of wet and dry fertilizers[108] - Forest Products freight revenues for Q3 2025 decreased to $193 million, down 3% from $198 million in Q3 2024, mainly due to lower volumes of wood pulp[110] - Energy, Chemicals and Plastics freight revenues for Q3 2025 fell to $701 million, a 2% decrease from $712 million in Q3 2024, primarily due to lower volumes of plastics and fuel oil[112] - Metals, Minerals and Consumer Products freight revenues for Q3 2025 increased to $458 million, a 3% rise from $443 million in Q3 2024, driven by higher volumes of frac sand[114] - Automotive freight revenues for Q3 2025 grew to $343 million, up 3% from $333 million in Q3 2024, primarily due to higher volumes from Mexico to Canada[116] Operating Efficiency - Operating ratio improved to 63.5%, a 260 basis point improvement from 66.1% in Q3 2024[83] - Total operating expenses for the third quarter of 2025 were $2,325 million, a slight decrease of 1% from $2,346 million in 2024[120] - The Core Adjusted Operating Ratio for Q3 2025 was 60.7%, compared to 62.9% in Q3 2024; for the nine months ended September 30, 2025, it was 61.3%, down from 62.9% in 2024[199] Cash Flow and Investments - Net cash provided by operating activities increased by $220 million in the first nine months of 2025 compared to the same period in 2024, primarily due to higher cash generating operating income[167] - Net cash used in investing activities decreased by $181 million in the first nine months of 2025, mainly due to proceeds from the sale of an equity investment of $493 million[169] - Net cash used in financing activities increased by $676 million in the first nine months of 2025, primarily due to share repurchases of $1,805 million[171] Tax and Interest Expenses - Income tax expense for the first nine months of 2025 was $945 million, a 16% increase from $813 million in 2024, primarily due to higher taxable earnings[141] - Net interest expense for the first nine months of 2025 was $646 million, an 8% increase from $598 million in 2024[138] Foreign Exchange and Market Risks - The company anticipates continued integration benefits and synergies from the CP-KCS combination, with a focus on operational efficiency and market expansion[204] - Forward-looking statements indicate potential impacts from changes in foreign exchange rates and commodity prices on future performance[205] - The Company is subject to market risks related to foreign exchange and share price fluctuations, which could impact earnings and stock-based compensation[209] - The Company faces various risks including inflation, geopolitical instability, and changes in laws and regulations that could impact operations and financial performance[207] Debt and Equity - As of September 30, 2025, long-term debt stood at CAD 21,450 million, an increase from CAD 19,618 million as of December 31, 2024, representing an increase of approximately 9%[184] - The company had a total of 900,831,248 common shares issued and outstanding as of October 28, 2025, with no preferred shares issued[185] Employee and Operational Metrics - The average number of employees decreased by 1% to 20,067 in Q3 2025, attributed to efficient resource planning[88] - Carloads decreased by 3.1 thousand to 182.4 thousand in the first nine months of 2025, representing a 2% decline[117]