CPKC reports first-quarter results; celebrating one year as a combined company

Core Insights - Canadian Pacific Kansas City (CPKC) reported first-quarter 2024 revenues of $3.5 billion, diluted earnings per share (EPS) of $0.83, and core adjusted combined diluted EPS of $0.93, reflecting a successful integration of Kansas City Southern (KCS) into its operations [1][2][8] Financial Performance - The reported operating ratio (OR) increased by 400 basis points to 67.4% from 63.4% in Q1 2023, while the core adjusted combined OR increased by 50 basis points to 64.0% from 63.5% in Q1 2023 [2] - Reported diluted EPS decreased to $0.83 from $0.86 in Q1 2023, but core adjusted combined diluted EPS increased by 3% to $0.93 from $0.90 in Q1 2023 [2][27] - Total revenues rose to $3.52 billion from $2.27 billion in Q1 2023, with freight revenues increasing to $3.43 billion from $2.22 billion [8][22] Operational Metrics - Volumes, measured in Revenue Ton-Miles (RTMs), increased by 1% on a combined basis [2] - The Federal Railroad Administration (FRA)-reportable train accident frequency increased to 0.89 from 0.71 in Q1 2023, and personal injury frequency increased to 1.15 from 1.12 in Q1 2023 [2] Strategic Outlook - CPKC's management expressed confidence in delivering on its 2024 guidance, citing strong momentum and an improving demand environment [2] - The company aims to leverage its unique position as the only railway connecting Canada, the U.S., and Mexico to drive growth and create long-term value for stakeholders [1][2] Acquisition Impact - The results include KCS on a consolidated basis from April 14, 2023, following the acquisition, which is expected to enhance CPKC's operational capabilities and market reach [1][17][31]