Railway Giant CPKC Sees Significant Growth in Q4 Earnings
Strong Finish to 2024
Canadian Pacific Kansas City (NASDAQ: CP) has announced a remarkable fourth-quarter performance, with revenues soaring to $3.9 billion, up from $3.8 billion in the same period last year. The Calgary-based company’s diluted earnings per share also saw a notable increase, rising to $1.28 from $1.10 in 2023.
Operational Efficiency Improves
The company’s operating ratio decreased by 210 basis points to 59.7%, down from 61.8% in the previous year. This significant improvement is a testament to CPKC’s commitment to operational excellence.
CEO Keith Creel Weighs In
“Our team has worked tirelessly to deliver industry-leading earnings growth in 2024,” said Keith Creel, CPKC president and chief executive. “We’re proud of our achievements, including volume growth, improved safety performance, and solid operational execution.”
Full-Year Performance
CPKC’s full-year operating ratio decreased by 60 basis points to 64.4%, down from 65 in 2023. While diluted earnings per share decreased to $3.98 from $4.21, the company remains optimistic about its future prospects.
Looking Ahead to 2025
Creel expressed confidence in CPKC’s ability to deliver strong earnings growth in 2025, consistent with the company’s multi-year guidance. The company is forecasting mid-single-digit volume growth in revenue ton miles and capital expenditures of $2.9 billion.
Investment in Growth
The increase in capital expenditures compared to 2024 is driven by a higher expected U.S.-dollar-to-Canadian-dollar conversion rate. This investment will support CPKC’s continued growth and expansion plans.
A Bright Future Ahead
With its strong Q4 performance and positive outlook for 2025, CPKC is poised to continue its upward trajectory. As the company looks to the future, it’s clear that its commitment to operational efficiency, safety, and growth will drive its success.
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