CPKC Q4 Results Mixed: Revenue Up, Profit Down; Full-Year Soars

CPKC’s Q4 2025 revenue rose 1% but net income dipped 1%. Full-year profit surged 11.4% to C$4.1 billion, showcasing operational efficiency and setting a new industry benchmark.

January 29, 2026 9:39 pm

🛑 Key Takeaways:

CPKC posted mixed Q4 2025 results with revenue up 1% but net income down 1% amid market headwinds.
Full-year 2025 net income surged 11.4% to C$4.1 billion, driven by cost discipline and operational efficiency.
The results validate the railroad’s precision scheduled railroading model, achieving a record low annual core adjusted operating ratio of 59.9%, setting a benchmark for the industry.

CALGARY, AB – Canadian Pacific Kansas City (TSX: CP, NYSE: CP) reported a 1% increase in fourth-quarter 2025 revenue to C$3.9 billion, while net income declined 1% to C$1 billion. The mixed results reflect what CEO Keith Creel termed a “challenging market” defined by macroeconomic pressures. Diluted earnings per share for the quarter fell approximately 6% to $1.20, down from $1.28 in the prior-year period. Despite the profit dip, the company’s Board of Directors declared a quarterly dividend of $0.228 per share.

Financial Metric	Q4 2025 Result	Full-Year 2025 Result
Revenue	C$3.9 Billion (+1% YoY)	C$15.1 Billion (+4% YoY)
Net Income	C$1.0 Billion (-1% YoY)	C$4.1 Billion (+11.4% YoY)
Diluted EPS	$1.20 (-6% YoY)	$4.51 (+13.3% YoY)
Operating Income	C$1.6 Billion (+3.3% YoY)	Not specified
Core Adjusted Operating Ratio	55.9% (Q4 Adjusted)	59.9% (Record Low)
Quarterly Dividend Declared	$0.228 per share	Not applicable

Operational & Technical Details

CPKC’s performance highlights a strategic focus on cost management. The company credits its precision scheduled railroading (PSR) model for its financial resilience. This operational strategy enabled CPKC to control costs effectively. The key indicator of this efficiency is the operating ratio (OR), where a lower number is better. The railroad posted a strong adjusted OR of 55.9% for the fourth quarter. For the full year, its core adjusted OR reached a record low of 59.9%. This full-year metric demonstrates sustained efficiency gains across the network.

Market Impact Analysis

CPKC’s ability to grow full-year profit by over 11% on just a 4% revenue increase sends a strong signal to the market. It proves that major Class I railroads can deliver significant shareholder value through operational discipline, even in a flat-to-low-growth environment. The record-low annual operating ratio sets a new efficiency benchmark for North American competitors. The simultaneous dividend declaration reinforces investor confidence, signaling that management sees the quarterly profit dip as a manageable event within a larger, positive financial trajectory.

FAQ: Quick Facts

What were CPKC’s key financial results for Q4 2025?

For Q4 2025, CPKC reported revenue of C$3.9 billion (+1% YoY), net income of C$1 billion (-1% YoY), and diluted earnings per share of $1.20 (-6% YoY).

How did CPKC perform for the full year 2025?

For the full year 2025, revenue grew 4% to C$15.1 billion and net income increased 11.4% to C$4.1 billion. The railroad also achieved a record low core adjusted operating ratio of 59.9%.