Core Points - Canadian Pacific Kansas City Limited (CP) reported first-quarter 2025 earnings of 74 cents per share, in line with Zacks Consensus Estimate, reflecting a 7.3% year-over-year improvement [1] - Operating revenues were $2.64 billion, slightly missing the Zacks Consensus Estimate of $2.66 billion, but showed year-over-year growth [1] - Total freight revenues per revenue ton miles increased by 5% year-over-year, while total freight revenues per carload rose by 6% year-over-year [2] Financial Performance - Operating income increased by 15%, with total operating expenses growing by 5% year-over-year, resulting in an operating ratio improvement of 210 basis points to 65.3% from 67.4% [2] - Freight revenues, which accounted for 98.2% of total revenues, increased by 8.7% to $3.72 billion, surpassing the estimate of $3.5 billion [3] - Cash and cash equivalents at the end of the first quarter were C$695 million, down from C$739 million in the previous quarter, while long-term debt rose to C$21.1 billion from C$19.8 billion [5] Segment Performance - The Freight segment saw varied performance: Grain up 4%, Coal up 21%, Potash up 10%, Energy, chemicals and plastics up 3%, Automotive up 18%, while Metals, minerals and consumer products decreased by 1% [4] - Other revenues increased by 7.6% year-over-year in the first quarter of 2025 [4] Outlook - The company expects 2025 core adjusted combined diluted earnings per share to grow in the 10-14% range, revised from a prior view of 12-18%, targeting C$4.25 per share [6] - Capital expenditures for the full year are projected to be C$2.9 billion, with an expected core adjusted effective tax rate of 24.5% [7]

Core Viewpoint - Air Lease Corporation (AL) reported strong first-quarter 2025 results, with earnings and revenues exceeding expectations, driven by increased rental revenues and aircraft sales, despite higher interest expenses [1][2]. Financial Performance - Quarterly earnings per share (EPS) reached $1.51, surpassing the Zacks Consensus Estimate of $1.24, marking a 15.3% year-over-year improvement [1]. - Total revenues amounted to $738.3 million, exceeding the Zacks Consensus Estimate of $710.8 million, and grew 11.3% year over year [2]. Revenue Breakdown - Revenues from the rental of flight equipment increased by 5% year over year to $645 million, attributed to fleet growth, although offset by a $12.7 million decrease in end-of-lease revenue [4]. - Revenues from aircraft sales, trading, and other sources surged by 90% year over year to $93 million, driven by heightened sales activity, including $61 million in gains from the sale of 16 aircraft [4]. Operating Expenses and Financial Position - Operating expenses rose by 13.4% year over year to $598.6 million [5]. - As of March 31, 2025, Air Lease owned 487 aircraft with a net book value of $28.6 billion, and the total fleet size was 804 [5]. - Cash and cash equivalents at the end of the first quarter were $456.62 million, down from $472.55 million in the previous quarter, while debt financing decreased to $19.8 billion from $20.2 billion [6]. Management Commentary - The CEO highlighted a strong quarter characterized by fleet expansion, significant sales gains, and insurance settlements related to aircraft in Russia, while noting no aircraft deliveries to countries with reciprocal tariffs [3]. - The company continues to benefit from robust global aircraft demand amid significant supply constraints [3].