CPKC(US:CP) ZACKS·2026-02-03 16:26Core Insights - Canadian Pacific Kansas City (CP) reported disappointing fourth-quarter 2025 results, with both earnings and revenues falling short of the Zacks Consensus Estimate [1][9] Financial Performance - Quarterly earnings, excluding 9 cents from non-recurring items, were 95 cents per share, missing the Zacks Consensus Estimate of 99 cents, but improved 3.3% year-over-year [2] - Operating revenues totaled $2.81 billion, which was below the Zacks Consensus Estimate of $2.86 billion, yet represented a 1.6% year-over-year increase [2] - Total Freight revenues per revenue ton miles grew by 1% year-over-year, while total Freight revenues per carload saw a slight decline of 0.1% [3] - Operating income increased by 3% year-over-year, and total operating expenses decreased by 0.2% year-over-year, leading to an operating ratio improvement of 80 basis points to 58.9% [3] Segment Performance - Freight revenues, which accounted for 98% of total revenues, increased by 1%, with notable segment performances: Grain (up 4%), Coal (up 3%), and Metals, minerals and consumer products (up 3%), while Potash (down 2%), Automotive (down 1%), and Energy, chemicals and plastics (down 2%) showed declines [4] Liquidity Position - At the end of the fourth quarter, CP had cash and cash equivalents of C$184 million, down from C$411 million in the previous quarter, while long-term debt decreased to C$19.94 billion from C$21.59 billion [5] Future Outlook - For 2026, CP anticipates core adjusted earnings per share to grow in the low double digits from 2025 actuals to C$4.61 per share, with revenue ton miles (RTMs) expected to increase in the mid-single digits [6] - Capital expenditures for 2026 are projected to be C$2.65 billion, with an expected core adjusted effective tax rate of 24.75% [6]