Canadian Pacific Kansas City (NYSE:CP) Announces Quarterly Earnings Results

Canadian Pacific Kansas City (NYSE:CP) (TSE:CP) released its earnings results on Wednesday. The transportation company reported $0.91 earnings per share for the quarter, missing the consensus estimate of $0.94 by ($0.03), reports. The business had revenue of $2.96 billion for the quarter, compared to the consensus estimate of $2.96 billion. Canadian Pacific Kansas City had a return on equity of 9.02% and a net margin of 25.02%. The firm’s revenue for the quarter was up 15.2% compared to the same quarter last year. During the same quarter last year, the business posted $1.10 earnings per share.

Here are the key takeaways from Canadian Pacific Kansas City’s conference call:

• CPKC reported 6% volume growth, CAD 4.2 billion in revenue, a 61.9% core adjusted operating ratio, and 16% growth in adjusted EPS. Management said the company remains on track for mid-single-digit volume growth and a strong finish to the year.
• Operating performance improved across key metrics, including an 8% increase in train speed, 7% lower dwell, 10% higher car miles per car day, and 3% better fuel efficiency. CPKC also expects a sub-60% operating ratio in the fourth quarter.
• Commercial momentum remained broad-based, with record grain and intermodal performance, continued growth in the Canada-Mexico land bridge, and a new five-year Elk Valley Resources agreement that will return roughly half of certain coal traffic to CPKC’s network. Management highlighted additional opportunities in domestic intermodal, Mexico, Saint John, and port-related traffic.
• Higher fuel prices were a significant headwind, driving a 56% increase in fuel expense and adding 190 basis points to the quarterly adjusted operating ratio. Executives also acknowledged that elevated fuel surcharges are creating price sensitivity and may push some customers toward alternative transportation modes.
• Personal injury frequency rose 20% year over year to 1.12, despite a 60% improvement in train accidents. Management said the increase in employee injuries did not meet its safety standards and that corrective efforts would remain a priority.

Canadian Pacific Kansas City Stock Down 1.3%

CP stock opened at $88.25 on Thursday. The stock has a market capitalization of $77.22 billion, a P/E ratio of 28.38, a P/E/G ratio of 1.88 and a beta of 1.13. The firm has a 50-day simple moving average of $88.98 and a 200-day simple moving average of $85.73. The company has a quick ratio of 0.50, a current ratio of 0.59 and a debt-to-equity ratio of 0.47. Canadian Pacific Kansas City has a 52 week low of $68.42 and a 52 week high of $96.90.

Canadian Pacific Kansas City Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, January 25th. Stockholders of record on Thursday, December 31st will be given a C$0.27 dividend. The ex-dividend date is Thursday, December 31st. This represents a $1.07 annualized dividend and a dividend yield of 1.2%. Canadian Pacific Kansas City’s dividend payout ratio (DPR) is 24.76%.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on CP. Wells Fargo & Company boosted their price target on Canadian Pacific Kansas City from $90.00 to $100.00 and gave the company an “overweight” rating in a report on Wednesday, July 8th. Scotiabank reaffirmed an “outperform” rating on shares of Canadian Pacific Kansas City in a research report on Thursday, July 16th. Evercore restated an “outperform” rating and set a $96.00 price objective on shares of Canadian Pacific Kansas City in a research note on Thursday. Zacks Research lowered Canadian Pacific Kansas City from a “strong-buy” rating to a “hold” rating in a research note on Monday. Finally, Citizens Jmp began coverage on shares of Canadian Pacific Kansas City in a research report on Wednesday, July 15th. They issued a “market perform” rating on the stock. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $110.31.

Canadian Pacific Kansas City News Summary

Here are the key news stories impacting Canadian Pacific Kansas City this week:

• Positive Sentiment: CPKC signed a new five-year agreement with Elk Valley Resources that expands its share of steelmaking-coal shipments from four British Columbia mines to Vancouver-area terminals. The deal supports longer-term freight volumes and network utilization. CPKC and EVR renew and expand rail service agreement
• Positive Sentiment: Third-quarter revenue increased 15.2% year over year to approximately $2.96 billion, in line with expectations. Management cited momentum across its North American network, while the earnings call highlighted record intermodal performance and continued confidence in delivering a strong 2026. CP Q3 2026 Earnings Call Highlights
• Positive Sentiment: BlackRock disclosed a 5.02% ownership stake in Canadian Pacific Kansas City, potentially signaling institutional confidence and providing shareholder support. BlackRock Announces 5.02% Ownership Stake
• Neutral Sentiment: The company declared a quarterly dividend of C$0.268 per share, payable January 25, 2027, to shareholders of record December 31. The annualized payout is approximately C$1.07, or a yield near 1.2%. Canadian Pacific Kansas City Limited declares dividend
• Negative Sentiment: Reported quarterly EPS of $0.91 missed the $0.94 consensus estimate, and earnings declined from the prior-year period. The shortfall is likely the main factor weighing on the stock despite revenue growth. CP Lags Q3 Earnings Estimates
• Negative Sentiment: Zacks Research downgraded CP from “strong buy” to “hold,” adding further caution around the earnings miss and the stock’s relatively full valuation.

About Canadian Pacific Kansas City

Canadian Pacific Kansas City Limited (NYSE: CP) is a North American transportation company that operates Canadian Pacific Kansas City (CPKC), a Class I freight railway. The company was created in 2023 through the combination of Canadian Pacific and Kansas City Southern, forming the first single-line railroad connecting Canada, the United States and Mexico.

CPKC transports a broad range of freight, including grain and fertilizers, coal, forest products, automotive goods, energy and chemicals, industrial and consumer products, and intermodal shipments.