Canadian Pacific Kansas City Limited (CP) reported first-quarter 2025 earnings (excluding 6 cents from non-recurring items) of 74 cents per share, which came in line with the Zacks Consensus Estimate. The bottom line improved 7.3% on a year-over-year basis. Operating revenues of $2.64 billion missed the Zacks Consensus Estimate of $2.66 billion. However, the top line improved on a year-over-year basis.In the reported quarter, total freight revenues per revenue ton miles increased 5% year over year. Total Fr ...

Core Insights - Canadian Pacific Kansas City (CPKC) reported strong first-quarter results for 2025, with revenues of $3.8 billion, diluted earnings per share (EPS) of $0.97, and core adjusted diluted EPS of $1.06, reflecting a solid performance despite challenging market conditions [1][2][4]. Financial Performance - Revenues increased by 8% to $3.8 billion from $3.5 billion in Q1 2024 [8]. - Reported diluted EPS rose by 17% to $0.97 from $0.83 in Q1 2024 [8]. - Core adjusted diluted EPS increased by 14% to $1.06 from $0.93 in Q1 2024 [8]. - Operating ratio (OR) improved, decreasing by 210 basis points to 65.3% from 67.4% in Q1 2024 [8]. - Core adjusted OR decreased by 150 basis points to 62.5% from 64.0% in Q1 2024 [8]. - Volumes, measured in Revenue Ton-Miles (RTMs), increased by 4% [8]. Updated Earnings Guidance - CPKC amended its 2025 earnings guidance due to uncertainties from evolving trade policies and recession risks, now expecting core adjusted diluted EPS to increase between 10% and 14% compared to 2024's core adjusted diluted EPS of $4.25 [3][4]. Operational Highlights - The company emphasized its focus on operational efficiency and safety, leveraging its extensive North American network to meet solid freight demand [2][3]. - The Federal Railroad Administration (FRA)-reportable personal injury frequency decreased to 0.98 from 1.14 in Q1 2024, and train accident frequency decreased to 0.38 from 0.90 in Q1 2024, indicating improved safety performance [8]. Conference Call Information - CPKC will discuss its results in a conference call scheduled for April 30, 2025, at 4:30 p.m. ET [5][6].